Why adoption of cloud-based technology is accelerating in building management

Continued investment in frontier technologies can serve as a competitive advantage, yet technology adoption varies across industry. The technology adoption curve, introduced by Everett Rogers, categorizes the population into five groups based on their readiness to embrace new technologies.

“Innovators” and “early adopters” are the first to adopt, driven by curiosity and risk tolerance, while the “early” and “late majority” are more cautious, waiting until the technology is proven. “Laggards” are resistant to change and adopt last.

While industries like finance and media quickly adopted cloud-based applications, facilities management has been slower to do so due to concerns about cyberattacks and resistance to new technology.

Despite this initial reluctance, connected building management is now gaining traction, with investments in digital solutions increasing. The compound annual growth rate (CAGR) for smart connected buildings is estimated at 13.7%.

Why now? The simple answer is that building operators are increasingly turning to cloud-based building management systems (BMS) to more easily manage complex, high-priority needs such as energy efficiency, operational uptime, compliance, and risk mitigation. Cloud-based applications are increasingly offering building operators a competitive advantage in these areas while also helping to mitigate risk.

Now let’s take a closer look at what’s driving this technology trend.

Energy efficiency and sustainability

Energy consumption is a major cost in building operations, especially from heating, ventilation, and cooling systems, which account for about 50% of usage. Plug loads also significantly contribute, averaging around 30% in office settings. A connected BMS can optimize energy use through real-time sensor data, automatic temperature control and connected power outlets, helping measure and reduce energy waste.

Uptime and cost efficiency

Unexpected downtime can have severe financial implications. For instance, a supermarket could lose perishable goods without refrigeration, costing large retailers millions. Connected systems with predictive maintenance modules can use capabilities such as AI to forecast equipment failures, using data points like temperature and energy consumption to identify early warning signs. This approach is more efficient than emergency repairs and makes better use of technical resources.

Remote access and control

A cloud-based BMS offers data visibility and remote access, enabling facility managers to monitor and adjust building performance from anywhere – which can enable more efficient facility management, such as general oversight of multiple locations from a central office, or by a decentralized team. Real-time data dashboards enable automatic control of lighting, heating and cooling based on occupancy rates, helping to improve efficiency and reduce costs.

Scalability

On-premises BMS installations can be costly and difficult to replicate across multiple sites due to unique system requirements. A cloud-based BMS is easier to scale, requiring no extensive IT infrastructure. Operators can expand data center contracts as needed, offering predictable monthly fees and replicable architecture for new buildings.

Data analytics and insights

An on-premises BMS require physical presence for analytics, which is often impractical due to industry skill shortages. Cloud connectivity enables remote experts to analyze multiple facilities, providing actionable insights, and consistent best practices across sites. Advanced data analytics enable continuous monitoring and optimization through online dashboards.

Enhanced security

Concerns about cybersecurity hinder some from adopting a cloud-based BMS. However, these systems invest heavily in security, including regular updates and data encryption. One result of this is that a cloud-based BMS always reflects the latest version with the latest security patches, whereas on-premises systems are often not current, and may be laborious to update. User management is also simplified, enabling instant changes to permissions.

Integration with other systems

On-premises systems often result in information silos, limiting analysis and optimization of overall building operations. A cloud-based BMS can easily integrate these systems using standard protocols like BACnet, enabling flexibility and extending ROI. Vendor-agnostic solutions provide a comprehensive view across technologies and device brands.

Automatic updates and maintenance

A cloud-based BMS uses the "software as a service” (SaaS) model, offering frequent updates and new features. This enables building operators to have access to the latest tools and functionality without re-engineering each site.

Conclusion

The building industry is now adopting cloud-based applications as a way to address operational challenges and to create strategic advantages, moving towards full digitization of building operations through cloud-connected BMS capabilities.

For building operators, connecting to cloud-based applications presents multiple advantages. And these advantages are most effectively realized in partnership with a trusted service provider who can advise on the most effective applications to meet the needs of your facility, and who can also provide ongoing monitoring and support to enable key performance indicators are being met.