Cloud adoption is one of the biggest business trends of 2020. In an increasingly digitized environment created by the COVID-19 pandemic, more fields than ever are considering migrating their existing apps to the cloud, and it is estimated that the public cloud service market will reach over $620 million by 2023 worldwide [Gartner].

What do these figures have to do with the construction industry, which is traditionally perceived as more conservative and slower in following IT trends? Well, they’re more important than you think because the construction industry has been shaped by many innovative technologies in the past years and cloud computing is one of them.

The role of cloud computing in constructions

Back-office functions play an essential role in construction. Apart from actual construction sites, where the physical presence of employees and machinery is required, businesses also deal with back-office processes such as payroll, data tracking, schedule tracking, and order management. Unfortunately, many small and medium-sized construction companies are still using spreadsheets for these processes because this is how things have been done for years, and they’re good at it. But, when it comes to streamlining data, there are many errors due to manual entry and information sharing, and these errors can cause significant financial losses and trigger delays in operations.

Instead, businesses that still rely on spreadsheets and other outdated methods should start identifying suitable software for each of their functions. Popular examples include Quickbooks and Sage, which are two well-known accounting software solutions. The same goes for project management, where businesses can switch to Windows-based solutions (that can run out of an office/server or cloud) or, alternatively, SaaS models.

Some organizations have a mix of both Windows and Web clients. For example, PM Web is a Project Management SaaS, and Sage Estimating is an SQL/Windows Client that can run standalone or can be hosted. Server management is especially overwhelming, especially if organizations depend on on-demand resources to visit. In the post-pandemic landscape where remote work is becoming the norm, businesses need to think about shifting to a cloud-based model, since this would help them perform entries from any device, at any time.

According to a McKinsey analysis, the past few years have signaled disruption in the construction industry and, in addition to immediate trends, we can expect the COVID-19 pandemic to accelerate digitization and increase productivity by up 10 times. Furthermore, an IDC study, Digital Transformation: The Future of Connected Construction, which gathered insights from 835 industry professionals, reveals that companies will start to adopt digital solutions: designers and engineers will rely more on remote collaboration tools, managers will use cloud-based apps to get real-time progress reports and switch from legacy systems to digital workflow management.

the cloud and The Benefits

Although people tend to think of cloud migration as a new trend, the shift actually started happening a few years ago. A 2017 survey conducted by Associated General Contractors of America in collaboration with Sage Construction and Real Estate, a whopping 85% of construction contractors used or planned to use cloud-based solutions, compared to just 16% in 2012. This growing interest is due to several key advantages that are as valid now, amidst the COVID-19 pandemic, as they will be once it ends:

Boost collaboration between contractors and clients

Infrastructure and construction projects are developing at an increasing pace and clients don’t want companies to slow down, not even in these challenging times. The modern construction professional not only needs to be the best at their job but also be highly collaborative. Constructions itself is an industry that requires a lot of mobility – traveling between work sites, overseeing multiple processes, coordinating teams. By using cloud-based applications, project managers can keep everyone in sync and have a bird’s eye view of everything that’s going on. Instead of using emails, all the project stakeholders can access the same calendar, schedule meetings themselves, and see project updates in real-time. Engineers and contractors can also use cloud-based apps to replan projects and optimize their schedules.

Remote access and easy sharing

The Coronavirus crisis has made construction companies face unprecedented challenges, including getting locked out of their own data. According to an ENR analysis, construction companies that had already transitioned to cloud infrastructure before the pandemic could adapt to the challenges faster and stay afloat. For example, as one executive who migrated to Microsoft Azure with Workspot explained, employees could log in to their normal work environment from home, even if they didn’t have too much bandwidth or computing power. As a result, the company was able to meet all its deadlines and push through. Having constructions and accounting software in the cloud means you don’t have to worry about the servers back in the office and you can just pick up and go.

Next-level security

We couldn’t talk about cloud services without addressing security. Although keeping all your data saved on local systems might seem like a good idea, this is a high-risk practice because it makes your data more vulnerable to theft, user errors, and accidental damage. Cloud systems, on the other hand, have automatic backups and data recovery features, which means that if the data is stolen or accidentally deleted, you can quickly recover it because it is stored on multiple servers in the cloud. Then, there’s the genuine possibility of cyberattacks. Hackers are known to target small to medium-sized businesses because they don’t have the resources to spot security breaches, but cloud migration can help mitigate this risk through features such as intrusion detection, prevention systems, data encryption, and multi-factor authentication.

Reduced costs

Cloud migration helps your organization save money in two ways: first, you no longer need to invest in local hardware and infrastructure, since everything is hosted in the cloud. You can scale up or down depending on your needs, and you also don’t have to hire a dedicated IT department to oversee your server setup. And second, by having secure cloud-based apps, you lower the risk of security breaches, which come with high recovery costs. According to the World Economic Forum, digitization could save as much as $1.2 trillion.

No matter why you want to move construction applications to the cloud, keep in mind that this is an important business decision that can impact your operations for years to come. To ensure you’re making the most out of it, cloud migration needs to be done right, according to a well-thought-out strategy.

For more information on the benefits of moving construction applications to the cloud and how to optimize migration, don’t hesitate to send me an email at sales@aeccloud.com or call (212) 505-0381.