Is Cloud the Future for Real Estate?

Transcription

1 White Paper Is Cloud the Future for Real Estate? by Auradha M O V E R C O M I N G L I M I T S

2 Sice the year 2012, global capital alloca o to direct real estate has doubled, risig from US$166 billio i 2012 to US$ 320 billio recetly. These umbers are ot surprisig whe viewed from the fact that real estate is the most vibrat, valuable, ad largest asset class i the world ad as a ivestmet op o is cosidered low risk makig it e cig for ivestors i a isecure ecoomy. Copar cipats such as developers, agets ad fiaciers, are racig alog, grabbig the fruits from low hagig trees. However, there is a drama c chage happeig withi the overall idustry ad that is the growig awareess of a shadow warrior, i.e. techology. Because of escala g demad for efficiecies ad be er user experieces, Real Estate techology (RealTech) has take the brick ad mortar out of this idustry ad replaced it with real techology. Veture capital fudig ito RealTech compaies icreased 1200% from US$ 221 millio i 2012 to $2.6 billio i Real estate has always bee a tradi oal idustry ad its par cipats comfortable with a quated processes. If iefficiecies resulted from these processes, they were igored for the overall good. But ow these compaies are viewig the impact of techology ad chage agets are icorpora g techology solu os to op mize costs ad opera os. This white paper focusses o the impact of techology ad how it beefits the real estate idustry. 2

3 Real Estate Sector Participats Lease ad Asset Maagemet Lease maagemet compaies focus o the tools, processes ad busiess models used for the leasig ad maagemet of reside al, commercial or idustrial real estate, from sigle proper es through to solu os desiged for complex property por olios. These compaies have also migrated their offlie busiess model to state-of-the-art techology pla orms. These pla orms are o e desiged ad implemeted by service providers. Some classic services offered by these pla orms iclude: Peer to peer leasig List ad search Ispec o /trasac o maagemet Teat screeig ad so forth Tow Plaig Tow or urba plaig so ware has evolved with me to address the challeges of sustaiable tow plaig. So wares' offer itui ve features ad workflows which overcome disorgaized data ad opera oal iefficiecies. It is a iterdiscipliary field which icludes social, egieerig ad desig scieces. Urba desig so ware Virtual reality ad simula o techology Mappig pla orms Satellite techology Beaco techology Customer Rela os Maagemet (CRM) so ware Buyers are lookig for proper es i loca os as far away from home as ca be imagied. They use search ad discovery tools, lis g portals ad directories to ide fy proper es. Withi compaies, agets are usig lead geera o solu os to ide fy prospects. Some of the commo so ware beig used by real estate compaies are: Property marke g ad sales solu os icludig social marke g ad marke g automa o Acquisi o fiace ad ivestmet pla orms icludig crowdfudig, peer-to-peer ledig ad o-demad fiace solu os Workforce maagemet so ware Desig ad Costruc o Urba Plaig Desig ad Costruc o CRM Lease ad Asset Maagemet Costruc o ad desig projects have bee familiar with techology for some me ow. Tools such as costruc o desig, buildig iforma o modelig (BIM) are beig used regularly for detailed schema cs. Now with 2D ad 3D imagig, ewer techologies are ivadig this space: Virtual reality ad simula o techology Ehaced architectural ad desig pla orms 3

4 Smart buildig pla orms ad ar ficial itelligece Iova o i buildig material Beaco Techology Suppliers ad material sourcig pla orms Project fiace ad ivestmet pla orms While all the above par cipats or players withi the real estate eco system opt for techology solu os i oe form or the other, there is oe sigificat techology disrupter that is o e igored, i.e. cloud. Cloud techology has prove its value i several sectors such as healthcare, ecommerce, trasport & logis cs, fiace, maufacturig, etc. But withi the real estate sector there are some early adopters ad others who view the cloud from afar. Why move to the cloud? The rapid rate at which this idustry is growig ad the overall effect of digital techology o cosumers has heighteed expecta os. Every aspect of a cosumer's life is impacted by techology ad whether it is re g a car, buyig groceries or socializig, digital trasforma o has escalated customer expecta os from service providers ad obviously real estate caot be le out. Urbaiza o has also impacted real estate cosiderably. Accordig to the 2014 World Urbaiza o Prospects Report by the Uited Na os' Departmet of Ecoomic ad Social Affairs, 54 percet of the world's popula o curretly lives i urba areas ad over 400 ci es ow have a popula o greater tha 1 millio people. This umber is forecast to reach 70% globally by 2050 but will be eve higher i regios like the Asia Pacific ad Easter Europe where the average is closer to 85%. For real estate, this is a opportuity beyod compare. Real estate is laggig behid i the adoptio of advaced techology but the ifluece of highly disruptio cloud-based busiess solutios will play a sigificat role for real estate compaies. Deloi e Report Digital disrup o i commercial real estate Catalyst for growth? However, to cope with this risig wave of expecta os, the idustry has to make some fudametal chages to the way it serves customers. Legacy systems ad maual opera os have already give way to techology solu os at a basic level, but there is a eed for more. Real estate of the future will eed to process user ad evirometal data ad be agile ad available. While there are ewer techologies emergig to support specific areas or busiesses withi the real estate umbrella, cloud techology has the power to make a differece to this idustry, irrespec ve of size, fuc oality or geography. Real estate has literally trasceded borders. However, over ad above all this real estate players, to stay compe ve are realizig that their busiess is about cocrete structures, but hidde withi the walls are data structures. Pavig the way to cloud migratio Real estate players have ot followed a uiform busiess ad opera oal pa er ad this is because there are so may varia os withi the eco system. From the ature of busiess to size to loca o ad customer profile, these busiesses are defied by factors which do ot have valid data. I other cases, a cetral pla orm may be coected to third party applica os. Similarly, there may be several hudreds of variats to the same busiess ad its players. To demys fy the complexity of cloud migra o requires aswers to three simple ques os: What are the back-ed applica os that might be more cost-efficiet whe hosted o a cloud? 4

5 Do you wat your cri cal applica os to remai hosted withi your premises, especially whe there is a be er op o available? Is it the ambiguity of security ad compliace that worries you whe cosiderig the cloud? There are o right ad wrog aswers for the ques os listed above. It is oly a 200 high view of a busiess but it s ll provides the first foothold for plaig cloud migra o. A micro level uderstadig of a busiess is required to determie a cloud migra o strategy. I most cases, compaies do ot opt for a complete migra o of their exis g systems ad applica os to the cloud. There are various reasos for this icludig security, third-party agreemets etc. I such istaces, a hybrid approach ca be adopted. A determiig factor will be the set of rules from the Fiacial Accou g Stadards Board that will roll out i early These rules ecessitate compaies to iclude opera g leases o their balace sheets. Whe that happes compaies ca take a fresh look at buyig versus leasig data ceters. Advatages of the cloud The cloud helps real estate compaies with the power of real- me data from a cetralized loca o. This trasceds the tradi oal siloed approach makig it easier for agets, brokers ad cotractors to make decisios o the go. Data collected over me ca become huge ad uwieldy. Also typically, files are stored i various formats both olie ad offlie. The cloud provides secure storage which makes it easy to access. The ecoomic beefits of cloud compu g ca be sigificat sice cloud compu g provides cost flexibility ad the pote al for reduced costs. Heavy capital expediture ca be avoided, because IT resources are acquired o demad as eeded ad paid for as a opera g expese. Also, the cost of staff resources required to deploy ad maitai IT resources are icluded i the cost of cloud compu g. Therefore, the eed for addi oal skilled IT staff resources ad related costs may be reduced whe usig cloud services for IaaS ad PaaS pla orms but eve more so for SaaS solu os where the cloud service provider takes the lio's share of resposibility. From a opera oal perspec ve, cloud services offer scalability ad the ability to adjust to demad rapidly. Cloud services ca offer be er security ad privacy for real estate systems. Cloud service provider data ceters are typically highly secure ad well protected agaist outsider ad isider threats usig admiistra ve, physical ad techical methods implemeted ad maitaied by expert professioal staff. Cloud services ca offer sophis cated security cotrols, icludig data ecryp o ad fie-graied access cotrols ad access loggig. Real estate systems built usig cloud services ca provide web access to data, avoidig the eed to store iforma o o cliet devices. The eed for scarce IT security skills withi the real estate orgaiza o also is miimized. Cloud service providers typically operate o such a scale that they have all the ecessary IT skills, with the costs of those skills spread across may customers. Real estate fuc oality ca be ehaced by cloud-based IT systems that offer the pote al for broad iteroperability ad itegra o. Real estate cloud services are Iteret-based ad geerally use stadard protocols, so coec g them to other systems ad applica os is typically straigh orward. The ability to share iforma o easily ad securely is a cri cal capability, ad cloud services are good eablers for this. Cloud services also support rapid developmet ad iova o, especially for mobile ad Iteret of Thigs (IoT) devices; thereby sa sfyig the demads placed o real estate IT systems by these ew ad rapidly advacig techologies. Cloud services ca eable remote access to applica os ad data via the Iteret usig wired ad wireless systems to eable access at ay me from aywhere that iteret coec vity ca be established. Support for access by mobile devices is o e 5

6 a feature supported by real estate cloud services. Triget's Cloud Advatage (cost, time, ad operatioal advatages) Tradi oal web applica os are fault-itolerat, do ot scale, ad cotai sigle poits of failure. With cloud services ad ifrastructure, the IT departmets have access to ulimited resources, reduced costs ad greater agility with o fiacial risk. With tremedous beefits, real estate compaies are ot askig if they should migrate to the cloud they are woderig how to migrate to cloud, very soo. Triget will uderstad your uique busiess requiremets, assess your curret ivestmets i techology ad applica os, ad help create a roadmap. Legacy applica os are cri cal to the uique eeds of may orgaiza os. I some cases, these applica os may ot be moved to public cloud due to regulatory compliace. If the best op o the is to leave the applica os o premises, Triget's egieers will build a SOA/web service that allows mash-ups ad itegra os that permit access from ew mobile ad/or cloud applica os. For applica os that ca be moderized, we create a strategy for moderiza o, such as "li -ad-shi ", complete rearchitecture or aythig i betwee. By establishig a phase-wise project pla, reiforced with idustry best prac ces ad structured processes, the migra o will be well plaed, executed ad supported. Cloud Adop o Maturity Model The diagram below ca be used to determie the maturity of your orgaiza o's cloud adop o through four stages: Adhoc, Aliged, Maaged ad Op mized. You ca also use this as a suggested roadmap towards your cloud goals. As your orgaiza o progresses through four stages, your IT system's capability, agility, efficiecy, velocity, ad quality icreases correspodigly. As digital disrup o co ues to be a game chager, real estate compaies will surely feel the impact. To survive ad compete, compaies will have to rethik their IT strategy. They will remai commi ed to their core visio but may eed to approach their busiess strategy with flexibility. This flexibility will require a commitmet to iova o from which opera oal excellece ad cost advatage will esue. 6

7 About Triget Triget is a techology solu os compay that provides comprehesive solu os for busiess problems via outsourced so ware product ad applica os desig, developmet ad quality assurace. Triget serves customers like Idepedet So ware Vedors (ISVs), eterprises ad SMBs i the High Tech, Healthcare, Educa o, Ecommerce ad Maufacturig areas. Triget's solu os help cliets overcome budget, schedule ad resource costraits. To lear more about Triget visit Our Headquarters Triget So ware Ic. 2 Willow Street, Suite #201 Southborough, MA (877) sales@triget.com Other Loca o Triget So ware Ltd. Khaija Bhava, 1st Floor #49, West Wig, Race Course Road Bagalore , Idia +91 (80) O V E R C O M I N G L I M I T S