CABA Information Series

(IS-2014-70) The Changing Face of Smart Buildings: The Op-Ex Advantage

Pacific Controls, a Dubai- based software company, recently installed a smart building management system in Cisco’s Middle East headquarters. The system manages the building from remote servers, using software that constantly generates algorithms that indicate if building temperature, cooling and energy use are straying from benchmarks. The database is in Amsterdam and the proxy server is in Bahrain. This global system delivers speed and security, but, for many observers, its most important feature is its investment paybackundefinedwhich was realized in less than two years. Smart building technology, while requiring some capital expenditure (cap-ex), is helping to reduce operational expenditures (op-ex) on the other side of the ledger. The resulting savings, according to two major corporate energy management studies done last year by The Economist Intelligence Unit (EIU) and Deloitte, have become increasingly essential to remaining financially competitive in the global marketplace.



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