In order to provide managed services for small energy suppliers, Itron, Inc. (ITRI) has entered into a deal with Utilita. The agreement will help consumers to buy energy from two national vending service providers with the managed repayment of tariffs and levels of credit and debt.
Utilita, the U.K.-based leading supplier of prepayment gas and electricity, signed the contract with Itron to supply widespread services to support its customers using prepayment electricity meters. Utilita is the latest addition to Itron’s prepayment managed service customer base.
Per the agreement, Itron will support the backend operations of Utilita’s prepayment offering including data management, transaction management, meter asset management, report creation and technical support through a business to business contact center. This will assist in serving Itron’s recently acquired key metered supplies in a more structured and stable manner. The contract will also help Itron’s growing customer base for prepayment solutions.
On the other hand, Itron’s expertise in managing complex data issues will be beneficial to Utilita and will help the latter in lifting management confidence by continuous focus on other fundamental issues.
Itron has taken a number of steps to improve its technology portfolio. This includes partnering with Cisco Systems, Inc. (CSCO) to develop an IPv6 mesh-networking solution, acquisition of cellular communications provider SmartSynch in 2012 and a partnership with QUALCOMM Inc. (QCOM) in 2013, which enhances its cellular offering by providing 3G performance and support for broader standards.
Recently, Itron announced its intention of using Microsoft Azure, a cloud computing and infrastructure platform created by Microsoft Corp. (MSFT) as the preferred cloud platform for its Itron Analytics application. With Microsoft Azure, Itron will have access to highly available, scalable and durable cloud storage, backup and recovery capabilities which will allow the customers to focus on running Itron Analytics rather than upgrading and maintaining hardware.
Moreover, Itron is likely to benefit from a strong backlog; new contracts, flexible business operations and expansion in emerging markets. However, delays in contracts and rising expenses could challenge future growth.
Liberty Lake, WA-based Itron Inc., along with its subsidiaries, is one of the principal technology providers to energy and water industries worldwide. It produces electricity, gas, water and heat meters, data collection and utility software solutions as well as various other associated metering products. The company provides its services to residential, commercial and industrial customers, along with transmission and distribution customers.
Itron currently carries a Zacks Rank #2 (Buy).
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