Convergence what is it really good for?
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1 Convergence what is it really good for? By Raphael Chalogany April 2016
2 Contents BSRIA Convergence definition Convergence benefits (1-3) Barriers for convergence Uptake of convergence in NA Data, WAP and DBS, worldwide million outlets, Impact of convergence Who is driving convergence? Example of a revolutionary converged lighting system offering many benefits Conclusion: Convergence of lighting and other building applications 2 2
3 BSRIA Convergence definition Definition Vertical convergence: is the software, smart devices and process that provides a platform and applications for the convergence of independent devices. IT convergence or horizontal convergence: is connecting (converging) IP devices onto a common physical network. Integration: joining/linking products/applications. Data flows in both directions but the products do not use the same platform. Many products are integrated by adding a driver or a controller. Methodology IT Convergence (IP) Vertical convergence (Software/process) Products/applications Stand-alone Stand-alone BACS/HVAC Occupancy / motion sensors IT Converged Converged Energy Management Lighting Controls Integrated Access controls Source: BSRIA 3 3
4 Convergence process and benefits (1) Business decisions Information / Reports Strategic and tactical decisions - Property management - Energy demand management - Life cycle management of equipment - Tenant portal Management level Controls Data processing Monitoring and operational units Real time building and process Information - Alarms - Consumption (history and trends) - Maintenance (schedule management) Automation/ control level Meters Sensors Cameras Valves Data Field level Access Security Fire Lighting Source: BSRIA 4 4
5 Convergence benefits (2) Owner/investor The investment is lower Improves productivity and working practises Reduced number of maintenance staff Reduced energy consumption Customer attraction - satisfaction retention Potential new revenue streams enabled by new technologies Tenants: Improved security Indoor comfort Higher building up-time Facility manager/building maintenance staff Easier - centralised management Real time information Location of malfunctions and problems Asset management and tracking 5 5
6 Convergence (3) A converged system cost the same or less! University in Florida Square footage cost for BMS, security systems, data and voice: - Traditional: $ Converged: $23.9 Total cost saving (phase one): $700,000 Energy usage reduction: 30% Operational cost reduced by 58% Hospital (large campus): Reduced cost by: - Single source/better management - Reduced material cost (wiring, networking hardware etc.) - Reduced installation cost (one vendor) - Lower operational cost (less staff) (Performance Contracting) Community Centre The solution includes HVAC, solar thermal and PV, BMS, data, fire and general upgrades. - $56,000 per year in maintenance savings - Projected saving over 15 years: ~$3 million (Performance Contracting) 6 6
7 Barriers for convergence Limited new build (economic recession) 70% of buildings in the US are dumb Conflict between IT managers and the FM/operational side IP devices used as stand alone Cybersecurity End user perception Use of traditional routes to market Focus on up-front cost, not operational and life cycle cost 7 7
8 Uptake of convergence, NA IT convergence vs stand-alone systems (% share by value), North America Source: BSRIA study carried out for CABA 0% 27% 28% 29% 10% 15% BACS/HVAC Smoke detector Energy Monitoring Data, video Access CCTV Lighting AV - Signage Power 8 8
9 Data, WAP and DBS, worldwide million outlets, Source: BSRIA Convergence and Big Data, August
10 Impact of convergence Data, WAP and DBS, Worldwide, million outlets, Source: BSRIA Convergence and Big Data, August
11 Who is driving convergence? Political/ economic factors End-user, property investors, developers Energy rating schemes Political commitments to reduce CO2. Government funded projects to reduce energy consumption and improve energy efficiency Desire to reduce energy costs, manage their building portfolio more cost efficiently and be perceived as a green company Most US converged buildings are LEED silver/gold/platinum Many BAS solutions are installed as stand-alone or integrated, but there is a consensus among the BAS suppliers that Convergence is the future. BMS suppliers IT suppliers keen to expand and open up new markets for sales of hardware, analytics/software and consultancy. IT suppliers PoE (lighting) Security Digital Building services. PoE powered LED lights, sensors, Wi-Fi access points, etc. where power and control are provided with the Ethernet. Security, mainly CCTV and access controls are often added to the converged network
12 Example of a revolutionary converged lighting system offering many benefits The Edge Building, Amsterdam Connected lighting system which communicates data through light itself. LoE uses PoE of modern computer networks. Benefits of Connected Lighting Energy efficiency Optimisation Performance Sustainability 12 12
13 Conclusion: Convergence of lighting and other building applications Convergence adds value as the customer s portfolio grows from single building facilities, to campus facilities, and across the complete portfolio of a company s assets, wherever they may be located in the world. The lighting industry is rapidly taking a bigger interest in convergence and its contribution will have a significant impact on the market in the near future. Benefits and substantial savings generated by converged building applications, including lighting, have been demonstrated and will continue to drive growth for the convergence stakeholders and across many industries
14 CONTACT Raphael Chalogany BSRIA Inc. 225 West Washington Street Office 2218 Chicago, IL, Tel: Raphael.Chalogany@bsria.com 14 14
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