Reports ETRM in a Low Commodity Price Environment | Page 8

ETRM in a Low Commodity Price Environment ETRM Software - Procurement and the Cloud Q: How do the current market conditions impact your ETRM procurement or replacement plans? European respondents indicated a high level of increased urgency to upgrade in order to address current market conditions (30%). In the US, only 4% indicated an increased urgency vs. 18% that indicated they were deferring planned acquisitions. Again, the results from European participants likely reflect the quickly changing market and regulatory structures in power and gas markets, and the need to address those changes in order to operate profitably in the face of lower commodity prices (increased trading volumes, optimized strategies and assets, etc.). Deferred our plans Increased the urgency to upgrade/replace Don't know Looking at other options such as cloud deployment No Impact 0% Europe North America 20% 40% Total Q: Are you more or less likely to consider hosted or cloud deployment for your ETRM system in order to reduce costs given the current market conditions? More than half of all respondents indicated they would be more likely to consider cloud delivery given the assumption that cloud solutions can provide a lower cost of acquisition and in some cases, a lower TCO. In North America, where cloud has had less take-up than in Europe, 60% indicated they would be more likely to adopt cloud to reduce costs, potentially indicating that the US market is becoming more familiar and more comfortable with the cloud value proposition. More Likely Less Likely Don't Know 0% Europe 20% 40% North America 60% 80% Total “Energy firms are looking to improve efficiency and agility by integrating, streamlining and optimizing their systems and processes. This is driving more firms to explore cloud platforms and managed services that will enable them to simplify their operational infrastructures with standard, configurable solutions and ultimately reduce their total cost of IT ownership by eliminating the amount of equipment and resources necessary to maintain an enterprise-scale ETRM solution.” Dr. Markus Seiser COO, FIS’ energy business © Commodity Technology Advisory LLC, 2016, All Rights Reserved. 8