I need a t-shirt that reads, "I [heart] CCRE." I'm serious. There is nothing about Cisco Connected Real Estate that you shouldn't like. Everything. The branding, the marketing (are the first two the same thing?), the white papers, and the book (yes, there's a book out there from 2006). All of it is good.
If you are in the business of city planning, economic development, commercial land development, general construction, or technology consulting/contracting, there is nothing better than heeding the advice of the CCRE message.
So let me get into the reasons why I [heart] it so much:
1) Explains the convergence story properly
I have seen the convergence message (of IT and facilities) get botched time and time again.. Developers, Owner's reps say they get it, but I've run into too many that don't or can't turn the concept of convergence into reality (they're either scared or uneducated). Cisco understands and clearly explains that business models can be transformed for the betterment of an organization. It is defined as bringing together three key aspects in a facility:
- Building technologies
- Physical security
- Unified communications
And while many get scared barely putting their toes into the world of convergence the greater the level of convergence, the greater the efficiencies and the more the real estate and IT functions can react to ever changing business climates. It is the convergence of all the systems over one building network that enables the owner and users of the property to drastically enhance their IT and real estate value.
2) Leverages Service Oriented Architecture (SOA)
More than ever, IT organizations are under pressure to improve profitability with technology implementations linked to business objectives. Cisco has a broad-based understanding of the key value chains in the real estate industry, from a service provider providing telecommunication services to a property to a large enterprise renting the property right down to a consumer living and working in the property.
To address these different needs, Cisco’s services-oriented approach defines the type of services, ranging from traditional security surveillance to Unified Communications-based voice over IP services, that can be built on an IP-based infrastructure.
3) Wireless is defined as a Utility
The connected real estate story starts with the foundation, the next generation building information network, or what Cisco refers to as the "fourth utility". Like a building owner/developer places plumbing, piping, and wiring into a building, so to now can they add an IP network to the fabric of the building.
The mantra here is: "Reduce cost and complexity by replacing disparate networks for communication, security, and buildings systems with one simplified, flexible, and scalable IP network."
Who doesn't want that? Key point: The key deliverable is connectivity.
4) Technology is the focal point of the Real Estate strategy
(click to enlarge)
With such a strategic impact on business transformation, technology must be considered earlier in the building life cycle. Moreover, 75% of the lifecycle costs is incurred during the operational stages. Historically, building and workplace design do not include IT considerations, and IT design is not dealt with until after delivery of the property.
Key point: Think about technology early & often!
5) Gets the Capex/Opex story
First off, if you think that the only way to save money on your building is on the energy side with all the talk of "sustainability" and "green", you're wrong!
Continental Automated Building Association stated in 2004 that, "First costs for integrated systems (including management hardware and software, network upgrades, web services, and reduction in devices) were 56% less than non-integrated systems."
Cisco shows how one can change the Total Cost of Ownership (TCO) model for the better showing savings on the CapEx and OpEx side.
Savings on the CapEx side come from:
- Cabling & Cable pathways
- Labor
- Equipment
- Project Management
- Consolidation of servers for the system
- Reduction in personnel training
- System configuration
- Wireless
- Power of Ethernet (PoE)
Cost savings in areas such as:
- Service contracts, additions/remodels
- Energy cost savings
- Improved load factor, coordinate supply
- Maintenance, Repair and Replacement
- Savings related to "productivity"
- Staff training, Efficiency, IT support
Conclusion
These are some of my thoughts on Cisco Connected Real Estate. Hopefully this is helpful. One thing to note is that Connected Real Estate is a vision (an idea, if you will). Cisco will NOT come and make this a reality. For that you'll need a Technology Contractor.