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 Channel Futures

Business Models


Smart Building Managed Services: The Next MSP Opportunity?

  • Written by Joe Panettieri 1
  • January 7, 2013
Global spending on smart-building managed services (SBMS) will top $1.1 billion in 2020, up from $291 million in 2012, according to Pike Research.

Global spending on smart-building managed services (SBMS) will top $1.1 billion in 2020, up from $291 million in 2012, according to Pike Research. The bulk of those dollars will involve building energy management systems (BEMS) but you can also imagine some of the spending to involve video surveillance, security and sensor monitoring. Should traditional MSPs give the SBMS market segment a look?

I'm not so sure. SBMS is all about building maintenance and energy efficiency — not exactly a sweet spot for technology-focused MSPs that support SMB customers. Key players in the market include everyone from AIMNet Smart Building Systems to Vigilent, which makes intelligent energy management systems for data centers, telcos and buildings.

Still, the line between data center management and facilities/building management has been blurring.

  • Energy consumption at data centers is growing at an annual rate of 15% in the U.S. – a doubling of energy use every five years, Vigilent estimates. In fact, power is the single largest operating expense for most data centers, almost half of which will run out of cooling capacity or power within the next two years, the company adds.
  • Meanwhile, typically 40% of a building's utility bill is for heating and cooling, and those utility bills are only getting bigger, Vigilent adds.

Lump all that together, and there are opportunities for MSPs to help customers monitor, control and cut their energy costs. But I suspect only a small percentage of MSPs are equipped to jump on this opportunity…

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Business Models MSP 501 Technologies

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3 comments

  1. Avatar Chris Chase January 7, 2013 @ 9:56 pm
    Reply

    Joe, I've thought about this and residential services for years.

    It really is just hardware and software after you're done with HVAC people and Electricians. We even already manage some of the technology involved. It's not a huge stretch to do it, but it is another industry to learn and figuring out what to resell and support etc.

    Worth talking about though.

    -Chris Chase
    Directive / JoomConnect

  2. Avatar Joe Panettieri January 11, 2013 @ 7:14 pm
    Reply

    Chris,

    Sorry for belated reply. Planes, trains and automobiles. Great to hear from you. IBM spent portions of this week talking about cloud services for building management and residential home management… Worth watching, indeed.
    -jp

  3. Avatar BumpInTheNight January 23, 2013 @ 8:00 pm
    Reply

    Sounds like something Cisco would do. Wait, they did…

    http://www.cisco.com/web/strategy/trec/index.html
    http://newsroom.cisco.com/dlls/2005/whitepaper.pdf
    http://www.cisco.com/web/strategy/docs/trec/Cisco_AAG.pdf

    They made a huge push in 2004/05 for this.

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