Research Note: WaterSmart Software (VertexOne)
Executive Summary
WaterSmart Software was established as a pioneer in water utility customer engagement and analytics, offering cloud-based solutions designed to help water utilities improve customer satisfaction and operational efficiency. The company's platform adds intelligence beyond traditional meter data, enabling utilities to transform their customer relationships and enhance water conservation efforts through behavioral insights and advanced analytics. WaterSmart's solutions have demonstrably helped water utilities reduce costs, protect revenue streams, and increase customer satisfaction by more than 25%, according to company materials. In May 2020, WaterSmart was acquired by VertexOne, a leading provider of SaaS solutions to the utility industry, expanding VertexOne's digital customer engagement capabilities in the water sector while complementing its existing expertise in energy markets. This acquisition has positioned the combined entity to deliver a comprehensive suite of utility management solutions spanning water, gas, and electric services, with WaterSmart's innovative customer engagement platform now rebranded as VXsmart within VertexOne's broader product portfolio. This research note analyzes WaterSmart's technological capabilities, market position, competitive landscape, and strategic direction following its integration into VertexOne.
Corporate Overview
WaterSmart Software was founded as a water conservation and customer engagement solution provider focused on helping water utilities better communicate with consumers about water usage, conservation opportunities, and service-related issues. The company, which operated as an independent entity until May 2020, developed a cloud-based platform that added intelligence to meter data, allowing water utilities to transform raw consumption information into actionable insights for both utility operations and customer communications. Prior to its acquisition by VertexOne, WaterSmart had headquarters in San Francisco, California, and operated as a venture-backed startup focused exclusively on the water utility sector. The company attracted significant investments, with CrunchBase listing WaterSmart as having secured venture funding to support its growth and product development initiatives in the water utility technology space.
In May 2020, WaterSmart was acquired by VertexOne, a utility-focused software provider backed by DFW Capital Partners, in a strategic move that brought together WaterSmart's expertise in water utility customer engagement with VertexOne's broader utility management solutions. According to the acquisition announcement, the combination created "the best-in-class Digital Customer Engagement platform in the utility industry," enabling expansion of services across water, electric, and gas sectors. Following the acquisition, WaterSmart's platform has been integrated into VertexOne's product portfolio and rebranded as VXsmart, where it continues to provide customer engagement and analytics capabilities with a focus on water conservation and operational efficiency. The acquisition aligned with industry trends toward comprehensive utility management platforms that address multiple service types through integrated digital solutions.
WaterSmart established its reputation by pioneering behavioral water efficiency techniques that demonstrably improved conservation outcomes and customer satisfaction for water utilities. The company's solutions were recognized for their effectiveness, with documented success in increasing water conservation, improving customer satisfaction, and delivering significant return on investment for utility clients. According to Featured Customers, WaterSmart had confirmed implementations with numerous water utilities across the United States, demonstrating the platform's scalability from small municipal systems to large urban water providers. The company's approach to water utility customer engagement was particularly notable for its emphasis on behavioral science principles, using comparative data and personalized insights to motivate conservation behaviors among residential and commercial water users.
Market Analysis
The global utility customer engagement and analytics market is experiencing significant growth, driven by increasing demands for water conservation, regulatory pressures for efficiency, and digital transformation initiatives across the utility sector. While specific market size figures for water utility customer engagement software vary across research sources, the broader utility customer information system (CIS) market was valued at approximately $1.1 billion in 2022 and is projected to grow at a CAGR of 9-10% through 2030, according to industry analyses. This growth is particularly pronounced in the water utility segment, where aging infrastructure, climate change impacts on water availability, and increasing consumer expectations are driving investments in digital customer engagement platforms. WaterSmart operated within this expanding market, focusing specifically on water utilities seeking to enhance customer relationships, improve conservation outcomes, and optimize operational efficiency through data-driven insights.
Following its acquisition by VertexOne, the former WaterSmart solution (now VXsmart) competes in a market alongside major players including Oracle Utilities, Open International, Hansen Technologies, and Itineris, as well as specialized providers like KUBRA and specialized water analytics firms. VertexOne's acquisition strategy, which included both WaterSmart and EC Infosystems, has positioned the company to compete more effectively across water, electricity, and gas utility segments with an integrated suite of solutions. The acquisition trend reflects broader market consolidation as utility software providers seek to offer comprehensive platforms that address multiple utility types rather than single-service solutions. This consolidation is driven by utility operators' preference for integrated platforms that reduce the complexity and cost of maintaining multiple specialized systems across their operations.
Water utilities are increasingly adopting customer engagement and analytics platforms like the former WaterSmart solution to address critical business challenges, including reducing service costs, improving conservation outcomes, and enhancing customer satisfaction. According to company materials, utilities implementing WaterSmart's solutions have achieved notable results, including more than 25% improvements in customer satisfaction, significant reductions in water consumption through behavioral changes, and measurable cost savings through improved operational efficiency. The platform's ability to identify potential leaks through smart meter data analysis has been particularly valuable for utilities seeking to reduce non-revenue water losses, with some implementations reportedly identifying thousands of potential leaks annually that might otherwise have gone undetected by traditional systems.
The market for water utility customer engagement solutions is being shaped by several key trends, including increasing adoption of advanced metering infrastructure (AMI), growing emphasis on water conservation due to climate change impacts, rising customer expectations for digital self-service options, and regulatory pressures for improved efficiency and customer communication. According to WaterSmart's published case studies, utilities implementing the platform have demonstrated success in addressing these challenges through improved customer communications, enhanced leak detection, and more effective conservation programs. The platform's emphasis on cloud-based delivery aligns with broader industry trends toward software-as-a-service (SaaS) models that reduce implementation complexity and provide more predictable cost structures for utilities. This trend toward cloud-based utility management solutions is expected to continue accelerating, with on-premises deployments increasingly giving way to more flexible, scalable cloud implementations.
Product Analysis
The core WaterSmart platform (now VXsmart under VertexOne) provides a comprehensive suite of customer engagement and analytics capabilities designed specifically for water utilities. The solution's architecture leverages cloud-based delivery to collect, analyze, and present water consumption data in ways that are meaningful to both utility operators and end customers. Key components include a customer self-service portal that presents real-time data on water usage, comparisons to neighborhood averages, and personalized water-saving recommendations based on household characteristics and consumption patterns. The platform also includes sophisticated analytics tools that help utilities identify potential leaks, high consumption anomalies, and opportunities for operational improvements through data-driven insights. Administrative dashboards provide utility staff with comprehensive views of system performance, customer engagement levels, and conservation program effectiveness.
The platform's customer engagement capabilities are particularly notable for their application of behavioral science principles to water conservation challenges. By providing contextualized consumption data that compares household usage to similar neighbors, the system leverages social norms to motivate conservation behaviors without relying solely on price signals or mandatory restrictions. According to WaterSmart's implementation case studies, this approach has proven effective in achieving measurable consumption reductions across diverse utility service territories. The platform's leak detection capabilities represent another high-value feature, automatically alerting customers to potential leaks based on continuous water usage patterns identified through meter data analysis. This proactive approach to leak identification helps utilities reduce water loss while improving customer satisfaction through early problem notification.
Integration capabilities represent a core strength of the WaterSmart/VXsmart platform, with the system designed to connect seamlessly with existing utility billing systems, customer information systems, and metering infrastructure. The platform supports various data integration methods, allowing it to work with both traditional meter reading approaches and advanced metering infrastructure (AMI) systems that provide more granular consumption data. According to implementation documentation, these integration capabilities enable utilities to implement the solution without replacing existing core systems, reducing implementation complexity and cost. The platform's open architecture supports connections to various enterprise systems, creating a unified view of customer relationships and consumption patterns that spans operational silos.
Following the VertexOne acquisition, the WaterSmart platform (rebranded as VXsmart) has been enhanced with additional capabilities and more seamless integration with VertexOne's broader utility management solutions. According to product materials, VXsmart now offers "consumption analytics and customer engagement" capabilities that "enhance customer engagement, reduce costs, and improve operational efficiency for transformative results." The solution continues to focus on water conservation and customer engagement, but benefits from expanded development resources and integration with VertexOne's broader portfolio of utility management solutions. This integration enables more comprehensive approaches to utility customer management across water, electric, and gas services through a unified platform, potentially offering significant advantages for multi-service utilities seeking consolidated customer engagement solutions.
Technical Architecture
The WaterSmart platform (now VXsmart) employs a cloud-based architecture designed to collect, process, and present water consumption data in ways that provide actionable insights for both utilities and their customers. The system integrates with existing utility metering infrastructure, whether traditional manual reads or advanced metering infrastructure (AMI), to gather consumption data that forms the foundation for its analytics and engagement features. This flexibility in data acquisition allows the platform to work effectively across diverse utility environments with varying levels of technical sophistication. Once collected, consumption data undergoes sophisticated processing that includes pattern recognition, anomaly detection, and comparative analysis against similar households or businesses, enabling the platform to identify unusual consumption patterns, potential leaks, and opportunities for conservation.
Security represents a critical element of the platform's architecture, with comprehensive measures implemented to protect sensitive customer data and utility system information. According to WaterSmart's implementation materials, the platform maintains PCI compliance and follows industry best practices for data protection, including encryption, secure authentication, and rigorous access controls. The system's cloud-based deployment model leverages enterprise-grade hosting infrastructure with redundant systems and disaster recovery capabilities to ensure continuous availability of service-critical functions. Data separation between utility clients is maintained through dedicated database schemas and secure file transfer spaces, eliminating the possibility of data corruption or privacy breaches caused by information co-mingling across utility implementations.
The platform's analytics architecture combines statistical modeling, machine learning techniques, and behavioral science insights to transform raw consumption data into meaningful insights and recommendations. These analytics capabilities enable the system to identify consumption anomalies that might indicate leaks, predict future consumption patterns based on historical usage and weather data, and segment customers based on consumption characteristics for more targeted conservation programs. According to implementation documentation, the system can process large volumes of consumption data in near real-time, providing utility operators with current insights into system performance and customer behavior patterns. These analytical capabilities form the foundation for both operational improvements and enhanced customer engagement, creating value for utilities beyond simple data presentation.
Integration capabilities represent a key strength of the technical architecture, with the platform designed to connect seamlessly with existing utility systems including customer information systems (CIS), billing platforms, work order management systems, and various metering infrastructures. According to implementation materials, the system supports multiple integration approaches, including API-based connections, secure file transfers, and direct database integrations where appropriate. This flexibility enables utilities to implement the platform without replacing existing core systems, reducing implementation complexity and risk. Following the VertexOne acquisition, these integration capabilities have been enhanced further through alignment with VertexOne's broader utility management ecosystem, creating more seamless connections across water, electric, and gas utility operations for multi-service providers.
Strengths
WaterSmart (now VXsmart) demonstrates exceptional strength in its specialized focus on water utility customer engagement and conservation, with a platform specifically designed to address the unique challenges faced by water providers. This domain-specific expertise enables the solution to deliver more targeted functionality than generic utility customer information systems, with features like comparative water usage analytics, leak detection, and conservation recommendations tailored to the specific operational requirements of water utilities. According to implementation case studies, this specialized focus has enabled utilities to achieve measurable improvements in customer satisfaction, conservation outcomes, and operational efficiency. The platform's cloud-based architecture provides utilities with rapid implementation capabilities, regular feature updates, and reduced infrastructure requirements compared to traditional on-premises solutions, aligning with broader industry trends toward software-as-a-service (SaaS) delivery models.
The platform's behavioral science approach to water conservation represents a particularly notable strength, leveraging social norms and personalized insights to drive customer engagement and behavior change. By providing contextualized consumption data that compares household usage to similar neighbors, the system motivates conservation behaviors without relying solely on price signals or mandatory restrictions. According to published case studies, this approach has proven effective in achieving measurable consumption reductions across diverse utility service territories. The solution's proactive leak detection and notification capabilities add significant value by identifying potential problems before they result in customer dissatisfaction or substantial water loss, with some implementations reportedly identifying thousands of potential leaks annually that might otherwise have gone undetected by traditional systems.
Integration flexibility represents another significant strength, with the platform designed to work effectively across diverse utility environments with varying levels of technical sophistication. The system can integrate with traditional metering systems using manual reads, automated meter reading (AMR) systems with drive-by data collection, or advanced metering infrastructure (AMI) with continuous data transmission, enabling utilities to implement the solution regardless of their current metering technology. According to implementation documentation, this flexibility reduces barriers to adoption and allows utilities to realize value from the platform even as they transition between metering technologies. The solution's open architecture supports connections to various enterprise systems, creating a unified view of customer relationships and consumption patterns that spans operational silos.
Following the VertexOne acquisition, the WaterSmart platform (now VXsmart) benefits from enhanced resources and integration with VertexOne's broader utility management solutions, creating additional strengths through expanded capabilities and market reach. According to acquisition announcements, the combined entity offers more comprehensive capabilities across water, electric, and gas utility services, creating potential synergies for multi-service utilities seeking consolidated customer engagement solutions. The acquisition has also expanded the platform's reach through VertexOne's established market presence, potentially accelerating adoption beyond what might have been possible as a standalone entity. This integration into a larger utility software ecosystem provides opportunities for enhanced functionality, more stable long-term development resources, and expanded implementation support capabilities that address previous limitations of the independent WaterSmart offering.
Weaknesses
While the WaterSmart platform (now VXsmart) offers comprehensive water utility customer engagement capabilities, its historical focus primarily on water utilities may limit its applicability for multi-service utilities seeking integrated solutions across electric, gas, and water operations. Although the VertexOne acquisition addresses this limitation somewhat by integrating the platform into a broader utility management ecosystem, the core solution was designed specifically for water utilities and may require additional customization to fully address the unique requirements of other utility types. This specialized focus, while creating strengths in water-specific functionality, potentially creates challenges for utilities seeking unified customer engagement across multiple service types. The platform's historical emphasis on residential customer engagement, while valuable, may also provide less robust capabilities for commercial and industrial customer segments with more complex water usage patterns and service requirements.
The platform's reliance on quality meter data for advanced analytics and engagement features creates potential implementation challenges for utilities with limited metering infrastructure or data quality issues. While the solution can work with various metering approaches, its most advanced capabilities require frequent and accurate consumption data that may not be available from traditional manual read systems or older automated meter reading (AMR) technologies. According to implementation documentation, utilities with advanced metering infrastructure (AMI) typically realize the greatest value from the platform's analytics and engagement features, potentially limiting full functionality for utilities with less sophisticated metering technologies. This dependency on metering infrastructure may create barriers to adoption or full feature utilization for smaller utilities or those in the early stages of metering modernization programs.
Following the VertexOne acquisition, the transition from an independent WaterSmart solution to the integrated VXsmart offering may create potential challenges related to product identity, development priorities, and customer support experiences. Like many technology acquisitions, the integration process involves reconciling different corporate cultures, development methodologies, and customer support approaches, potentially affecting the customer experience during the transition period. While the acquisition provides enhanced resources and broader market reach, it also introduces new organizational dynamics that may affect product development priorities and customer relationships during the integration phase. Additionally, the loss of an independent market voice focused exclusively on water utility customer engagement may reduce the visibility of water-specific innovation as the solution becomes part of a broader utility management portfolio.
When compared to larger enterprise utility software providers like Oracle Utilities or SAP, VertexOne (including the former WaterSmart solution) may face resource constraints in terms of development capacity, marketing reach, and global implementation support. While the company has secured significant funding and completed strategic acquisitions, it still competes against much larger organizations with more extensive resources for product development, marketing, and global customer support. According to industry analyses, this scale differential could affect competitiveness in large enterprise deals against more established providers with greater resources and broader solution portfolios. Additionally, as a more specialized solution, the platform may face increasing competition from both established enterprise software vendors expanding into utility applications and newer, cloud-native startups focused on specific aspects of utility customer engagement and analytics.
Client Voice
Municipal water utilities implementing the WaterSmart/VXsmart platform have reported significant operational improvements and enhanced customer engagement capabilities. According to the City of Tallahassee implementation, WaterSmart provided a comprehensive solution to help the utility better communicate with residential customers and improve water conservation outcomes through personalized insights and recommendations. The City of Santa Barbara implemented the platform alongside Advanced Metering Infrastructure (AMI), leveraging the combined technologies to provide customers with hourly water meter readings and daily updates through the customer portal, substantially improving leak detection capabilities and customer self-service options. Smaller municipalities like the City of Buda and the City of Fort Myers have also successfully implemented the platform, demonstrating its scalability across utilities of various sizes. These municipal implementations consistently highlight the platform's ability to transform customer relationships through improved communication channels, proactive leak notifications, and personalized conservation recommendations.
Water conservation districts and regional water authorities have leveraged the platform to achieve measurable reductions in water consumption through improved customer engagement and behavioral insights. According to implementation case studies, these organizations particularly value the platform's ability to support conservation initiatives through targeted communications, personalized water-saving recommendations, and comparative usage analytics that motivate behavior change. The solution's ability to identify high-consumption customers and provide them with specific conservation recommendations has proven particularly valuable for utilities in water-stressed regions facing supply constraints and regulatory pressures for improved efficiency. Regional implementations have demonstrated the platform's ability to address diverse consumption patterns and customer needs across different community types within a single service territory.
Utility customers have responded positively to the enhanced engagement capabilities provided by the WaterSmart/VXsmart platform, with implementations reportedly achieving more than 25% improvements in customer satisfaction scores. According to utility feedback, customers particularly value the platform's proactive leak notifications, personalized consumption insights, and self-service capabilities that provide greater control over water usage and billing information. The solution's mobile-friendly customer portal enables customers to manage their accounts, monitor consumption patterns, and receive important utility communications through their preferred devices, enhancing accessibility and user satisfaction. Implementation feedback suggests that customers with access to the platform demonstrate higher engagement with utility communications, greater awareness of conservation opportunities, and improved satisfaction with overall utility services compared to traditional utility communication approaches.
Implementation timelines for the WaterSmart/VXsmart platform typically range from several weeks to a few months, depending on the complexity of the utility environment and the scope of integration requirements. According to implementation documentation, the cloud-based architecture enables relatively rapid deployment compared to traditional on-premises utility systems, with utilities able to achieve initial functionality within weeks of project initiation. Integration with existing utility systems typically represents the most time-intensive aspect of implementation, with complexity varying based on the utility's current technology environment and data quality. Ongoing maintenance requirements are generally minimal due to the cloud-based delivery model, with regular updates and enhancements delivered automatically through the SaaS platform. Utilities consistently highlight the value of the platform's specialized water industry expertise, which enables more effective implementation and ongoing support compared to more generic utility customer information systems.
Bottom Line
WaterSmart (now VXsmart under VertexOne) offers a comprehensive, cloud-based customer engagement and analytics platform specifically designed to address the unique challenges faced by water utilities seeking to enhance customer relationships, improve conservation outcomes, and optimize operational efficiency. The platform's strengths in behavioral water efficiency, proactive leak detection, and personalized customer engagement make it particularly valuable for utilities facing supply constraints, regulatory pressures for conservation, or customer service challenges related to water usage and billing. Following the VertexOne acquisition, the solution benefits from enhanced resources and integration with a broader utility management ecosystem, potentially providing greater value for multi-service utilities seeking consolidated customer engagement across water, electric, and gas operations. Organizations seeking to transform their water utility customer relationships through digital engagement and data-driven insights should consider VXsmart (formerly WaterSmart) as a leading candidate, particularly if they already have or are implementing advanced metering infrastructure.
The platform is best suited for forward-thinking water utilities with a strong commitment to customer engagement, conservation, and digital transformation. Municipal water providers, regional water authorities, and water districts with existing investments in metering infrastructure will realize the greatest value from the platform's analytics and engagement capabilities. The solution is particularly valuable for utilities in water-stressed regions facing supply constraints, conservation mandates, or customer communication challenges related to rate increases or service changes. Smaller utilities with limited internal IT resources may find particular value in the cloud-based delivery model, which reduces implementation complexity and ongoing maintenance requirements compared to traditional on-premises systems. Organizations seeking primarily basic billing functionality without enhanced customer engagement or conservation capabilities might find the solution's advanced features unnecessary for their current needs.
For utility executives concerned with enhancing customer satisfaction while improving operational efficiency, the VXsmart platform offers a proven approach to digital customer engagement that delivers measurable results across key performance indicators. The solution's specialized focus on water utility challenges provides more targeted functionality than generic customer information systems, with features specifically designed to address water conservation, consumption analytics, and leak detection. By implementing VXsmart, utilities can transform their customer relationships from transactional billing interactions to collaborative partnerships focused on shared conservation goals and improved service outcomes. As utilities continue to face increasing pressures for conservation, transparent customer communication, and operational efficiency, digital engagement platforms like VXsmart will become increasingly critical components of successful utility management strategies.
A successful implementation typically requires a minimum viable commitment to data integration, staff training, and change management to realize full value from the platform's capabilities. Utilities should be prepared to dedicate resources to system integration, data quality improvement, and internal process changes to fully leverage the platform's functionality. Executive sponsorship and cross-functional stakeholder engagement are critical success factors, ensuring that the platform supports broader organizational goals for customer service, conservation, and operational efficiency. Given the cloud-based delivery model, technical infrastructure requirements are relatively minimal, with most implementation effort focused on integration with existing systems and organizational change management rather than hardware deployment or system configuration. For utilities with limited internal resources, VertexOne offers implementation services and ongoing support to complement internal capabilities and ensure successful deployment.
Strategic Planning Assumptions
Because water utilities face intensifying conservation mandates due to climate change impacts while consumer engagement expectations continue to rise, by 2027, digital customer engagement platforms that combine behavioral analytics with personalized conservation recommendations will become standard for 65% of water utilities serving more than 50,000 customers, with adoption rates increasing 20% annually. (Probability: 0.85)
Because the integration of Advanced Metering Infrastructure (AMI) with customer engagement platforms demonstrably improves leak detection capabilities and customer satisfaction scores, by 2026, utilities implementing combined AMI and digital engagement solutions will achieve 40% faster leak resolution times and 30% higher customer satisfaction scores compared to utilities with AMI alone, driving accelerated adoption of integrated solutions. (Probability: 0.80)
Because water utilities increasingly recognize the operational cost benefits of effective digital customer engagement, by 2027, utilities implementing behavioral customer engagement platforms will decrease customer service call volumes by 25% and reduce water waste-related service costs by 30% compared to traditional utility communication approaches, creating compelling ROI justification even for smaller utilities. (Probability: 0.75)
Because utility customers increasingly expect consistent digital experiences across all service types (water, electric, gas), by 2026, multi-service utilities will prioritize integrated customer engagement platforms that provide unified experiences across all utility services, with 70% of new platform investments focused on solutions that span multiple utility types rather than service-specific implementations. (Probability: 0.80)
Because data analytics capabilities represent an increasingly critical component of water conservation strategies, by 2027, water utilities will increase investments in advanced analytics by 200%, with predictive consumption modeling and targeted conservation interventions becoming standard practices for 60% of medium to large water providers facing supply constraints. (Probability: 0.75)
Because mobile-first customer engagement has become the dominant paradigm for digital interactions, by 2026, water utility platforms without comprehensive mobile capabilities will experience 50% higher customer dissatisfaction scores and 40% lower digital adoption rates compared to mobile-optimized solutions, forcing rapid adaptation among legacy providers. (Probability: 0.85)
Because SaaS deployment models demonstrate significant advantages in implementation speed and total cost of ownership for utility applications, by 2027, on-premises deployments of customer engagement solutions will represent less than 15% of new implementations, with cloud-based solutions becoming the default choice for utilities of all sizes. (Probability: 0.90)
Because artificial intelligence and machine learning capabilities are rapidly transforming utility customer engagement, by 2026, AI-powered capabilities including predictive consumption analytics, natural language processing for customer communications, and automated conservation recommendations will be standard features in 75% of water utility customer engagement platforms. (Probability: 0.70)
Because regulatory pressures for water conservation reporting and documentation continue to increase in water-stressed regions, by 2027, water utilities will prioritize platforms with comprehensive conservation program management and reporting capabilities, with 65% of utilities in drought-prone regions implementing specialized conservation analytics solutions. (Probability: 0.80)
Because industry consolidation continues to reshape the utility software market, by 2026, the number of independent water utility customer engagement providers will decrease by 40% through mergers and acquisitions, with larger utility software providers incorporating specialized water engagement capabilities into broader utility management platforms. (Probability: 0.85)