In the ever-evolving landscape of building automation, a new paradigm is emerging: Smart Building as a Service (SBaaS). This model takes the advanced technology of smart building management and energy optimization and wraps it up in a subscription-based package, making cutting-edge innovation accessible to more than just the largest players in the market. As industries everywhere are embracing the shift toward as-a-service models, SBaaS is positioned to transform how we think about and manage buildings, providing both economic and operational benefits.
What is Smart Building as a Service (SBaaS)?
At its core, SBaaS is a service model that allows building owners and facility managers to subscribe to a suite of smart building technologies and services. This model includes everything from HVAC and lighting control to energy management systems, occupancy sensors, and even security infrastructure. The key innovation of SBaaS is its accessibility: by offering these services through a subscription, the upfront costs that have traditionally acted as barriers to entry for smaller property owners are significantly reduced.
Instead of purchasing and maintaining expensive equipment, which also involves dealing with the inevitable obsolescence that comes with fast-evolving technology, subscribers can access the latest and greatest in building automation with minimal capital investment. Essentially, SBaaS democratizes smart building technology, opening the door for small and medium-sized enterprises (SMEs) to benefit from sophisticated systems previously reserved for larger corporations.
Making Advanced Automation Accessible
Historically, smart building technology has been the domain of large corporations with deep pockets. Implementing a comprehensive building management system (BMS) often required substantial capital expenditures on hardware, software, and integration services, not to mention the ongoing costs of maintenance, updates, and training. For many smaller property owners, these costs were prohibitive, forcing them to rely on outdated, inefficient systems or to forgo smart technology altogether.
SBaaS changes this dynamic by lowering the financial barrier to entry. With a subscription model, the significant upfront costs are spread out over time, transforming what was once a capital expense into an operating expense. This shift not only makes it easier for smaller players to adopt the technology but also allows for greater flexibility in managing cash flow and budgeting.
Moreover, because the service provider handles maintenance and updates, subscribers are always working with the latest technology, without worrying about obsolescence or the need for expensive upgrades. This is particularly advantageous in an era where technology is advancing rapidly, and keeping up with the pace of change is a constant challenge.
The Benefits of SBaaS
Reduced Upfront Costs: The subscription model is the cornerstone of SBaaS, offering significant cost advantages. Building owners no longer need to make large capital investments in hardware or software, allowing them to allocate resources more efficiently.
Access to Cutting-Edge Technology: By subscribing to SBaaS, users gain access to the most current and advanced technologies in building automation. This ensures that their systems remain up to date, with service providers continuously upgrading the infrastructure to incorporate new features and improvements.
Scalability: SBaaS offers a level of scalability that traditional models struggle to match. As a business grows or its needs change, the service can be easily scaled up or down, without the need for significant additional investments in infrastructure.
Operational Efficiency: The ongoing management of the system, including updates, troubleshooting, and optimization, is handled by the service provider. This means that building owners and facility managers can focus on their core business operations, knowing that their building’s performance is in expert hands.
Improved Energy Efficiency and Sustainability: With SBaaS, buildings can be optimized for energy efficiency through continuous monitoring and adjustments. This not only reduces operational costs but also aligns with the growing emphasis on sustainability and ESG (Environmental, Social, and Governance) compliance. Enhanced energy efficiency is a direct path to reduced carbon footprints, making SBaaS a smart choice for companies committed to environmental stewardship.
Data-Driven Decision Making: SBaaS providers often include advanced analytics as part of their offering, enabling building managers to make informed decisions based on real-time data. This data-driven approach leads to better resource allocation, improved occupant comfort, and more efficient building operations overall.
The SBaaS Ecosystem: Who’s Involved?
The rise of SBaaS is being driven by a range of stakeholders, from technology companies and service providers to property owners and tenants. Technology companies develop the sophisticated software and hardware that make smart buildings possible, while service providers package these technologies into user-friendly offerings.
Property owners and facility managers, especially those overseeing smaller or older buildings, are increasingly turning to SBaaS as a way to modernize their infrastructure without the daunting costs and complexities of doing it themselves. In turn, tenants benefit from better-managed buildings that offer improved comfort, safety, and energy efficiency.
Challenges and Considerations
While the benefits of SBaaS are compelling, the model is not without its challenges. One potential concern is the reliance on external providers for critical building functions, which can create issues around control and data ownership. Property owners need to carefully consider the terms of service agreements and ensure they retain adequate control over their building systems and the data generated by them.
Another consideration is the potential for service disruptions. As with any service model, SBaaS is only as reliable as the provider. Building owners must conduct due diligence to select reputable providers with a track record of reliability and strong customer support.
Finally, there is the issue of customization. While SBaaS offerings are becoming more flexible, they may not always meet the unique needs of every building or owner. It is important to evaluate whether a provider can tailor their services to suit specific requirements or if compromises will need to be made.
The Future of SBaaS
The rise of SBaaS is more than just a trend; it represents a fundamental shift in how we think about building management. As more property owners and facility managers recognize the advantages of this model, we can expect to see rapid growth in its adoption. Additionally, as technology continues to advance, the capabilities of SBaaS offerings will only improve, making smart building technology even more accessible and effective.
In a world where technology is advancing at breakneck speed and sustainability is no longer optional, SBaaS offers a practical, forward-thinking solution. By making advanced building automation accessible and affordable, SBaaS is not only helping smaller players stay competitive but is also paving the way for smarter, more efficient buildings everywhere.
As we look to the future, it is clear that SBaaS will play a crucial role in shaping the next generation of smart buildings—buildings that are not just more efficient and sustainable, but also more responsive to the needs of their occupants and the environment. This is not just a service; it’s a revolution in how we manage and inhabit our built environment.
If you have commercial tenants, they’ve likely scheduled heating or air conditioning outside of your building’s usual business hours. Managers and owners commonly refer to these extra hours as overtime HVAC, after-hours HVAC, after-hours air conditioning or some variation. These overtime utility services give companies the flexibility to host special events, hold annual meetings, or simply extend their workday hours.
Tenant overtime HVAC systems are online platforms that automate the scheduling and billing of those after-hours HVAC requests. These systems streamline much of the traditional steps of a tenant overtime program, including scheduling and billing. Consequently, they save property managers and their staff time and resources. In addition, overtime HVAC systems can increase tenant satisfaction and conserve energy. Modern systems operate on a software-as-a-service model (SaaS) where property managers pay a monthly subscription for the service, but one-time fees are also available.
Modern tenant overtime systems let property owners set normal business hours (blue), while tenants can schedule HVAC service outside these times (green).
After-Hours vs Standard Occupancy Times
Standard business hours or “occupancy times” for buildings vary by region, but most fall somewhere around 8 a.m. and 6 p.m. Monday to Friday. Owners and managers define their business hours within commercial leases and agree to provide heating, cooling and lighting for tenants to operate their businesses. However, many leases also allow for “after-hours” or “overtime” HVAC requests. These are defined as any times outside normal business hours, and they’re usually billed separately from normal OPEX.
To recoup the costs for providing after-hours HVAC services, managers and owners usually charge tenants a fixed hourly rate (ex: $35/hour). The rate usually includes an estimated energy cost for providing service for one hour, plus an admin fee to cover staff time.
Overtime HVAC Scheduling
Because after-hours HVAC requests are outside standard operating hours, tenants must schedule them with the manager or building engineer. Typical steps in a standard overtime program usually involve the following:
The tenant makes an overtime HVAC request via email or text.
The manager records the request in a spreadsheet and notifies the building engineer.
The engineer programs the request into the building’s BMS.
The manager invoices the tenant at the end of the month for the overtime charges.
Managing this process requires time and resources, which is why most leases require a 24 or 48-hour notice per request. The window gives staff enough time to schedule the request, but places limits on how spontaneous tenants can be with last minute schedules.
Tenant overtime HVAC systems eliminate or simplify many of the above steps. Instead of an email or phone call, tenants use an online portal and web browser to submit overtime requests. Since overtime systems link to your building’s BMS, they bypass the need for manual reporting and system programming—no managers or engineers needed. This keeps notice times shorter, and tenants benefit from the increased flexibility.
Overtime HVAC systems also come with mobile apps. Tenants use these programs to schedule after-hours services from their smartphones or tablets. The freedom of mobile scheduling tends to increase overall tenant satisfaction with a property’s after-hours program.
Common connection flow of a cloud-based tenant overtime HVAC system to a commercial property.
Overtime HVAC Billing
Billing for standard hour energy is straightforward. Tenants pay pro rata based on the building’s total utility costs for the month. The strategy essentially splits the energy costs among all tenants equally, and everyone pays their share at the end of the month. However, overtime HVAC charges add complexity to monthly billing. It would be unfair to split overtime energy costs among all tenants, since only specific ones use it, so landlords invoice tenants only for the kWh they use.
However, individual invoicing takes more time. Spreadsheets need updated. Invoices generated. Emails sent to tenants. Plus, manual entry increases the risk of mistakes, leaving tenants paying too much or too little. Tenant overtime HVAC systems automate most of these monthly billing tasks, eliminating human error and tenant disputes around charges.
Overtime systems record BMS operation histories in their servers. So, times, days, and durations of overtime services are automatically generated for any timeframe. Most platforms also automate monthly billing to tenants. Since the system tracks individual usage, it can email automated invoices to tenants, taking the paperwork off property managers.
Energy Conservation
On average, 30% of the energy used in commercial buildings is wasted. After-hour scheduling changes and cancellations happen. It’s not uncommon for tenants to walk into unheated boardrooms or for entire building floors to sit unoccupied while chillers run at full power. Such scheduling mistakes waste energy and money. The bulk of these issues stem from recording mistakes and human error. A work order was overlooked, an email went to spam. Someone was out sick. These are common, often unavoidable, situations.
Because they’re automated systems, tenant overtime platforms eliminate human error. Schedule changes and cancellations are caught more frequently and wasted energy reduced.
Overtime HVAC systems can also positively affect tenant attitudes toward energy waste. Because tenants pay for the overtime kilowatts they use, they’re more cautious about waste. In contrast, attitudes towards energy use during standard business hours can be markedly different. Those tenants often have a “use it or lose it” approach, feeling they should condition the air in their spaces, whether they’re empty or occupied. The attitude is “We’re paying for it anyway.”
Tenant Satisfaction
Aside from time and money savings, the biggest selling point of overtime HVAC systems is their value to tenant businesses. With HVAC scheduling, office managers can operate hybrid workspaces more effectively. Government agencies can use after-hours reports to report on sustainability goals. Software developers could employ overtime usage to evaluate team productivity. Marketing agencies could add overtime energy costs as a billable line item for clients. The value of tenant overtime HVAC systems is yet to be fully realized, but the heart of it lies in their ability to empower tenants to run better businesses and organisations.
Software-as-a-service (SaaS) is a growing trend in FM because of several advantages cloud-based services deliver over in-house development. For one, it’s generally cheaper to outsource your software needs rather than spend time and money developing a bespoke solution. Ramp up time is much faster too. The general wisdom is that FMs get a better product by letting the market do the heavy R&D lifting. Data accessibility and security is generally equivalent or comparable to in-house IT, provided you do your homework. To that end, here are some key SaaS components to consider during the procurement process. Download this SaaS procurement checklist for quick reference.
Mobile Access
Remote and hybrid work schedules are on the rise. Your team and your clients need the flexibility of mobile access to stay competitive. Look for a cloud-based software with admin/client access to most features, dashboards and data via mobile device and web browser.
Customer Support
Customer support is essential to seamless integration and service continuity, so invest some time here. Take advantage of free demos and trial periods to kick the tires on a vendor’s customer service. Submit a work order and note things like response times, professionalism, expertise and problem solving.
Pro Tip: If possible omit your company affiliation when creating a demo account. Companies often give a potential enterprise account better service than a single user.
Training Resources
Training resources ensure a smooth integration, and any SaaS vendor worth their salt will offer a healthy library of video tutorials, how-to guides, in-office training and online resources for you and your staff. Have your staff sample a few offerings and rate them for accessibility, clarity and ease-of-use.
Data Security
Given the rise in ransomware attacks, data security is a priority, and most SaaS platforms collect some data on you and your users. Data storage, collection and encryption are a security and compliance issue, so ask about these practices. If a vendor isn’t forthcoming, it may be a red flag. Look for security standards and certifications for cloud-based software. These credentials might include Cloud Industry Forum certification or compliance with international standards for cloud-based security such as ISO-27001.
Data Ownership
Who owns your data is also a key consideration, especially when and if you ever switch to another vendor. So, ask about the data transfer process to other platforms. How complicated is retrieval? Can you simply download a spreadsheet or does the vendor collect it for you? The vendor may claim rights to your data beyond the contract end date. Does this violate your own privacy policies? Ensure these data ownership topics are clearly spelled out in your SLA.
Integration
Software platforms need to easily integrate with your connected systems, like your BMS, CRM or billing software. Check the vendor’s list of supported brands and models. But even if your systems are supported, the integration process may take more time than you want. Ask for a time frame for getting up-and-running with the platform before making your final procurement decision.
Pricing Model
SaaS companies often use their pricing schemes to “hide” add ons and upsells for new features after purchase. Read their pricing page carefully. Even if the annual plan is cheaper, it may contain stipulations like extra costs for adding accounts or transactions. Month-to-month plans will have limited features, so check the pricing comparison list to see which ones you’ll be missing out on with a basic plan.
Pro Tip: If a platform offers “custom” pricing for enterprise accounts, take the opportunity to negotiate a lower price based on your evaluation of the product. For example, the lack of adequate training resources might justify a lower annual price.
Customer Reviews
For real-world usability, go to the source: customers. Review sites like Capterra and G2 Crowd offer descriptions and consumer ratings of all types of products. Sites like these also let you make an apples-to-apples comparison of SaaS platforms, their features and prices.
Usability
Ill-designed SaaS platforms erode their effectiveness, so evaluate these key usability components:
User Interface
Pages, buttons and menus are organised in a logical way
There is a consistent look (i.e., colors and textures) from area to area.
The font is easy to read
Navigation
It’s easy to locate information
There’s a smooth flow when performing steps in a task
You can perform the same task from multiple places
Responsiveness
The website loads quickly
The interface works well on mobile devices and small screens
Also keep in mind that an ineffective interface is harder to learn, which can length the training process and cost you time and money.
Growth
Finally, during your SaaS procurement, decide whether your chosen SaaS will grow with your business. Does the company have a track record of innovation and growth? How easy is it to add new accounts for future employees? Is there a limit on the number of users? Does the company have plans for expanding features? Answering these questions and others like them will get your better idea of whether a specific SaaS will meet your future needs.
