Cisco, IBM, AT&T and Intel: Involvement in the Evolution of the Smart Grid

Ah, the smart grid. What started out as a small idea has quickly turned into a multi-billion dollar empire, backed by federal grants, major corporations and cities throughout the country. 

Now, an article on Seeking Alpha by David Fessler discusses what four major corporations – Cisco, IBM, AT&T and Intel – have in common by way of the smart grid movement. 

Fessler said that, in addition to being four of the most successful technology companies, they’re heavily involved in America’s smart grid, a decade long project that’s still in the works. 

However, news is on the horizon. 

“Until now, one of the big problems with the ‘smart grid’ was the lack of set standards,” Fessler said. “Without them, each power company would be free to do as it pleases, resulting in a hodge-podge of small grids that, in all likelihood, wouldn’t work together.”

But, when the Commerce Department released the specific details of the smart grid initiative, Fessler discusses how the four big firms have lobbied vigorously for certain data and communications standards as a way to finalize the basic integration and connection of the companies smart meters and other smart grid product lines. 

Additionally, Fessler said that the National Institute of Standards, or the “NIST,” require IP technology in any system connected to the smart grid and that the idea that the existing Internet could be used as the information highway for smart grid data communications and also for control purposes is up for debate.

For Cisco, the news comes at an opportune time with the company’s recent Smart Grid Ecosystem initiative, the company’s efforts to bring together service providers, energy companies and IT vendors to work towards the evolution of smart grids technology. 

However, if smart grid communication is based on IP technology, Fessler questions its vulnerability to hacking. And, Mike Davis, a senior security consultant at IOActive, said that current smart meters are probably not smart enough and can easily be hacked. 

Could this be a new way for hackers to attack a system? It will be interesting to see what unfolds if, and when, a smart grid is deployed somewhere in the country. 

According to Fessler, these four major corporations – Cisco, IBM, AT&T and Intel – are poised to cash in on the new government earmarked funds for the smart grid projects. 

With IBM’s recent software platform release and Cisco’s smart grid ecosystem, it seems that these companies are using their power to make the light at the end of the smart grid tunnel a little brighter. 

“This just goes to show that it’s not just the obvious candidates that stand to profit from the electrical smart grid plans [like] utilities,” Fessler said. “These great tech giants are ready and waiting to deliver crucial services, too.”