The business potential of the smart grid is becoming clearer. At least to Maxim Integrated Products, which announced on Monday it would pay $315 million for Teridian Semiconductor.
Maxim finds smart grid business opportunities, but many utilities aren't yet analyzing the smart grid data they receive, a study finds.
Without a doubt, the development of a more intelligent electrical grid is at an early stage, much like the personal computer was in the early 1980s. A lot of education is needed, both with consumers and utilities.
In a survey released last month, GE found only 4 percent of Americans know what a smart grid is. Another 17 percent are familiar with the term, meaning that the rest haven’t a clue.
An equally alarming study came Monday from IDC and CSC. Research firm IDC discovered that less than half of the nation’s top 20 utilities are using analytical software to comb through the mountains of data starting to come in from millions of smart meters now being installed at homes and businesses. That’s like American Express not studying credit card purchasing data to map new ways to expand its products and services.
Survey “responses indicate that smart utility and meter-to-cash technologies are creating significant amounts of data and analytics for customer intelligence, which (would) allow utilities to study consumer reaction to pricing, identify potential revenue leakage, forecast customers’ ability to pay and limit unbilled usage through move-in/move-out disconnections,” according to a press release.
Many utilities may remain in the dark (pardon the pun), but some businesses do not. Chipmaker Maxim decided it was worth solidifying its smart-grid market position with an bundle of money.
Teridian holds 50% share of the market for integrated energy measurement semiconductors – systems on a chip, according to a Maxim press release. These systems-on-a-chip include an accurate analog front end, or interface, a microcontroller and a display driver. They are quickly replacing independent alternatives.
Maxim said Teridian’s market position with its measurement products would help push sales of its power management, real-time clock, and interface offerings for smart meters. It also could advance Maxim G3 Powerline Communication products.
Some companies are waiting for the smart grid to come to them. Others are not. Maxim’s shares were up an nickel, despite its decision to spend $315 million.
Posted by Mark Boslet 
