Picture this: a quiet suburban street at dusk. Homes aglow with warm light as families settle in for the evening. Outside, electric vehicles hum in driveways, plugged in for an overnight charge. Miles away, a storm is brewing, threatening power lines already stretched thin by the growing demand for electricity.

In a local utility company, a dashboard lights up with alerts — predictions of where the grid will be strained, where maintenance crews should be sent, and where energy may need to be redirected.

This is the future of energy. It’s intelligent, predictive, and can help your energy and utility (E&U) company stay ahead and resilient. Artificial intelligence (AI) is more than automation, it helps you forecast what’s coming and adapt in real-time.

Change has always been approached with caution in the energy and utilities sector, and for good reason. The infrastructure is complex and downtime isn’t an option.

However, caution can no longer mean standing still. Technology is changing, risks are growing, and the industry is facing pressure to modernize, optimize, and innovate.

That’s where the cloud comes in.

The cloud can help you build a stronger, more resilient, and more future-ready organization. And while migrating to the cloud may feel like a leap in progress, particularly if your operation is relying on legacy systems, it doesn’t have to be overwhelming.

Let’s walk through what’s holding companies back, where the cloud can help, and how to migrate to the cloud with sureness.

For many energy organizations, cloud migration is on the radar. In fact, North America led the global market with the highest market share of 44 percent in 2023, according to a Precedence Research study on cloud computing in the energy market.

But data security and regulatory compliance concerns are causing some Canadian companies to delay a full migration. And the longer it stays on the back burner, the more challenging the move may become.

So, what is the cloud? In simple terms, it’s a way of accessing computing services — like storage, servers, software, and analytics — over the internet instead of through hardware you have and maintain on premises. Cloud providers host these services on their own infrastructure, which you can tap into on demand. You can scale these services up or down as your needs evolve.

Here’s why sticking to outdated systems is holding you back:

Legacy systems: Many companies are running on outdated hardware and software. These systems are fragile, limit your ability to innovate, and pose security threats. These limitations can make the move feel risky.

Technical debt: These old data centres are expensive to maintain, but many companies worry that updating them could break what remains of their technology stacks.

Fear of the unknown: Your team may not fully understand how your outdated systems work, making them feel like a migration is risky. Because of this, there’s a preference to maintain the status quo.

Security threats: Many companies lack the in-house expertise to effectively address security vulnerabilities. This puts organizations into a cycle where their legacy systems put them in a position of being more vulnerable to security breaches, but don’t have the capabilities of fixing these vulnerabilities.

Compliance concerns: Data residency laws, regulatory requirements, and security standards can leave you feeling wary about losing control over your data.

Vendor lock-in fears: There are concerns that moving to a specific cloud provider will limit flexibility or tie you into their ecosystem.

Cultural resistance: Organizations can be highly process-driven and lean a little more conservative in attitude. This resistance can stall decisions, even though the need to migrate is clear.

The bottom line? While the cloud might seem more intimidating than sticking with the status quo, clinging to outdated systems can pose an even greater challenge.

The reality is that legacy infrastructure isn’t just old, it’s become a liability. The cost to maintain it is rising. The risks it introduces are growing. And with more and more vendors shifting to cloud-based service models, maintaining on-premises systems is only going to get harder.

So, why move to the cloud?

Security: The cloud is often more secure than on-premises environments. Major providers invest heavily into securing their platforms, far more than many individual companies could match. While you still own responsibility for access and endpoint protection, the underlying infrastructure is very resilient.

Scalability: You can scale your resources up or down based on your individual needs — no hardware upgrades required.

Cost flexibility: This scalability also allows you to shift from the high, fixed cost of legacy systems to a more manageable, variable cost model. You only pay for what you use.

Speed to innovate: The cloud gives your team the freedom to test, develop, and deploy new solutions without being limited by outdated systems or IT bottlenecks. You can develop and test in the cloud using a full suite of tools and environments.

Regulatory responsiveness: With the right setup, cloud environments can help you adapt more quickly to always-changing compliance demands. Because cloud providers have ready-to-use policy sets and controls in place, it helps align your infrastructure and applications to requirements from day one.  

Vendor alignment: Your equipment and software providers are likely shifting to cloud-based delivery, and that means your systems need to be compatible. Maintaining the status quo could mean becoming unsupported.

Artificial intelligence readiness: Cloud environments are built to support modern artificial intelligence (AI) models. Whether you plan to train your own or integrate third-party AI tools, the cloud will provide you with the flexibility, scalability, and infrastructure you need to make AI a practical part of your operations.

Keep up with competitors: Chances are, many of your competitors have already moved to the cloud and are reaping the benefits. Falling behind on this move could mean falling behind your competitors.

Ultimately, migrating to the cloud isn’t your operation chasing trends or innovation. It’s a step toward remaining viable in a market that’s transforming.

Cloud migration can open the door to a range of opportunities. Some of the most impactful use cases for the energy sector include:

Big data and analytics

From predictive maintenance to grid optimization, analytics is transforming how your energy business makes decisions. The cloud offers powerful analytics capabilities, and the storage capacity needed to process data-intensive tasks. Structured data is vital for AI, enhancing model training and results. In energy, it improves pattern recognition, decision making, and efficiency. Cloud computing offers scalable storage and power to process large, structured data efficiently.

Application development

Whether you’re developing custom applications or modernizing legacy ones, the cloud provides your developers with the freedom to experiment and iterate. You can spin up environments quickly, test new technologies, and reduce your reliance on your busy IT team.

Archive storage

Your company manages huge amounts of data, and a lot of that data needs to be stored for compliance and performance tracking. The cloud offers scalable, secure storage solutions that don’t take up any physical space or require hardware maintenance.

Backup and disaster recovery

The cloud is ideal for disaster recovery, as it offers quick access to backup storage in case you experience a disruption. This reduces the need for an on-premises backup environment.

Each one of these key use cases delivers meaningful benefits on its own. But when you consider them collectively, your business can become more agile and competitive than with outdated systems.

The biggest hurdle in cloud migration isn’t technical — it’s mindset.

Many energy and utilities operations get stuck in the cycle of planning. Between heavy bureaucracy, long approval chains, and process-drive cultures, even defining a cloud strategy can take months. That’s not necessarily a bad thing; it reflects the high standards and regulatory pressures your organization must face.

But it also means progress can stall before it even gets started.

The truth is, you can move to the cloud all at once. But that kind of leap can be overwhelming.

Some companies, particularly large organizations, opt for a hybrid cloud approach, where some systems stay on-premises while others transition to the cloud. It’s a more manageable way to modernize without putting operations at risk.

Moreover, many operations run programs rather than projects. This puts them in a position to take a long-term, strategic approach to cloud migration. They focus on building the right foundation from the beginning, which could take months or even years.

Here are some tips to help you get started:

Conduct a thorough assessment: Evaluate your current systems and processes to determine which are most suitable for cloud migration.

Develop a hybrid strategy: Plan which systems will remain on-premises, and which will make the initial transition to the cloud, to ensure minimal disruption.

Build a strong foundation: Establish robust cloud governance policies and security protocols to support a smooth long-term transition.

Pilot migration projects: Begin with smaller, less critical systems to gain experience and refine your approach before scaling up to larger migrations.

For efficiency and effectiveness, it’s important to consider an external provider for cloud migration. The right partner will bring the necessary skills and experience to ensure a smooth transition for your organization. This means advising you on managing expenses during and after the move, as well as having knowledge of the energy sector, technical expertise, and vision to ensure a successful cloud migration.

At MNP Digital, our advisors help energy and utilities companies define their strategy and migrate workloads with confidence, while keeping security and compliance front and centre.

Want to get started? Our professionals are here to talk through your specific challenges and share how we can help you achieve some quick wins. Reach out today.