Cloud: Growth for Construction
In conversations lately with both contractors and technology companies, and in reviewing analyst reports as of late, it seems the cloud is clearly having an even greater impact on the construction industry—and this is due to a number of factors.
Let’s take a look at some numbers first to get a better idea of market trends. Organizations are saving roughly 14% of their budgets as a result of public cloud adoption, according to Gartner, www.gartner.com, Stamford, Conn. However, cost savings is not the top driver for cloud adoption—rather IT modernization is, or the focus on leveraging a more sophisticated and strategic use of cloud service.
The result of more innovation and overall growth of the public cloud. In fact, Gartner says the worldwide public-cloud services market is projected to grow 17.2% in 2016, totaling $208.6 billion, which is up from $178 billion in 2015. The highest growth comes from IaaS (infrastructure as a service), which is projected to rise 42.8% by the end of the year.
Many existing technology providers that have been in the market for decades are in the process of updating product to be more in line with this move toward the cloud, while other brand new products are also entering the market, looking to snatch up some of the marketshare.
One example of a new company that has entered the arena in the past 18 months is Cloud EPC, www.cloudepc.com, Addison, Texas, which developed from parent company Nexus Program Management Group, www.nexuspmg.com, Addison, Texas.
The company’s founders were working for a large EPC (engineering, procurement, and construction) firm and experienced frustrations of working with other systems firsthand, and saw the opportunity for project control specialists. Thus, Nexus PMG was born in 2013. Soon, the team realized there was also a gap in the market for software and developed Cloud EPC, which is enterprise project management software.
The cloud-based technology supports all phases of project execution including cost-management, change management, progress measurement, enterprise analytics, project reporting, and safety tracking.
It is encouraging to see new products such as this enter the market, and spur a bit of competition among those already serving the space. It is time for construction companies to modernize IT systems—and moving to the cloud might be just the solution.
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