By Jesse Berst

The companies announced Monday that Elster will offer smart grid solutions for field area networks using Cisco's technology. The upshot, they say, is utility customers will have an even more flexible, secure and economical Advanced Metering Infrastructure (AMI) communications infrastructure.

"As a smart grid solutions industry leader,Elster is committed to true interoperability and innovation," said Ed Myszka, President of Elster Solutions. "This announcement builds on Elster's track record of collaboration and integration to deliver the next generation of interoperability." (You can read the press release on page 2.)

Two years ago we told you that Cisco would recruit any and everybody to support its platform. And that Itron's advantages to its partnership were a) to be first to market and b) to have more influence over the final design.

"Our Itron-Cisco IPv6 reference architecture was the first to market and we always intended for partners and competitors to adopt it as we move toward a true plug and play model,” confirms Itron's Russ Vanos, vice president Global Smart Grid Solutions. “Standards and interoperability simplify the deployment of smart grid technologies while reducing the total cost of ownership of these systems. The utility industry and the smart grid will only get stronger by adopting standards as the next logical step.”

Notice how both executives emphasize interoperability. It is important for utilities to distinguish between standards and interoperability. There are many ways to implement a standard (and many ways to layer proprietary enhancements on top of open standards). As a result, two companies that both support the same standard on paper may not interoperate in real life.

How do you guarantee interoperability? One way is to integrate with a reference platform. That's the approach Itron took two years ago, choosing to align with Cisco's expertise and brand name in open IP networking. Now Elster is along for the ride. Can others be far behind?

More about Cisco and Elster…

Reports of my demise department: Cisco doubles down on smart grid

Elster buyer plans on spending increases, not cuts

Industry heavyweights drive adoption of wireless networking standard

The smart grid according to Cisco: 9 things you need to know now

Jesse Berst is the founder and chief analyst of Smart Grid News.com, the industry's oldest and largest smart grid site. A frequent keynoter at industry events in the U.S. and abroad, he also serves on advisory committees for Pacific Northwest National Laboratory and the Institute for Electric Efficiency. He often provides strategic consulting to large corporations and venture-backed startups. He is a member of the advisory boards of GridGlo and Calico Energy Services.