I recently toured IBM's headquarters in Armonk, NY. The 280,000 square foot facility that was built in 1997 during the Lou Gerstner era, is currently serving as a pilot project for IBM's soon-to-be launched Smart Building solution. For an investment of under $200,000 (plus many hours from IBM software engineers), IBM has transformed the building into a smart building.
If we start with an oversimplified idea that "Smart Grids = Grids + ICT," then it is obvious that utilities IT budgets have a direct effect on our future achievements of a Smart Grid. However, while there is growing excitement in the market concerning new technologies, including those in the Smart Grid concept, utilities are always cautious when it comes to IT spending and have pressure to prove ROI or TCO reduction before implementing any new initiative. Utility CIOs' budgets are still subject to numerous influences, including cost containment, compliance with regulations, and maintenance of the existing infrastructure.