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Cisco’s deal with Itron has set itself the target of no less than combining IP communications with smart meters as a base layer for a global smart grid. 
 
Both firms have agreed to attempt to define a standard for smart metering communications based on IPV6, the coming web standard. 
 
Paul De Martini, chief technology officer and vice president of strategy for the Smart Grid business unit at Cisco, said: "We want to respect the legacy systems that have been deployed thus far within smart grids while innovating for the future. Cisco believes that Itron’s current-generation OpenWay solution is an excellent candidate for future upgrades to a full IPv6 implementation. With a true smart-meter platform providing full software upgradability, OpenWay will be a catalyst for launching this next-generation architecture" 
 
Itron and Cisco said they will jointly develop the reference design that defines a standard for smart grid field area and smart metering network communications 
 
Under terms of the agreement, Itron will license and embed Cisco IP technology within its OpenWay meters as well as distribute Cisco networking equipment and software as part of its smart meter deployments. In a statement Itron said will continue to provide the complete solution and maintain its customer relationships. 
 
Itron reported its second quarter results on July 28th. They showed total revenues of $569 million for the second quarter of 2010 and $1.1 billion for the first six months of 2010 - 38% and 33% higher than respective 2009 revenues of $414 and $802 million. For the quarter revenue of $303m came from North America and $266m from international sales. 
 
"The alliance between Cisco and Itron represents a major step forward in the realization of a modern, more intelligent energy infrastructure. Together, we aim to enable standardization of the smart-grid architecture and help create an end-to-end communications platform. As a result, utilities will benefit from an energy grid that is more secure, scalable and reliable, as well as solutions that are easier to maintain and able to support future needs"said Laura Ipsen, Cisco senior vice president and general manager for the Smart Grid business unit. 
 
Philip Mezey, senior vice president and chief operating officer for Itron North America, stated: "Our customers have reiterated that security, interoperability and open standards are critical to the success of their smart grid initiatives. We are creating the first enterprise-class utility networking solution to utilize the scalable, reliable, highly secure technology synonymous with the Cisco name around the world. At Itron, we are enthusiastic about this effort and its potential to enhance utility communication networks around the globe."

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