How Cloud Service Providers Help Reduce Cost in Construction

Cloud services and SaaS systems are transforming the way the world does business.

While cloud adoption has grown among contractors in the construction industry, some are still unconvinced of the benefits, untrusting of the technology, or unwilling to pay what they believe to be the high cost of joining the cloud revolution.

And, yet, the cost of not adopting cloud-based technology and SaaS services is too high. If the pandemic has taught us anything, it’s that cloud technology allows businesses to stay connected, even when the rest of the world shuts down.

A recent McKinsey report found that in addition to a changing market environment and new entrants, the digitalization of products and processes will trigger an overhaul and shape future dynamics in the construction industry.

The same report notes that “Today, across industries, winners continue to heavily invest in technology, many with a focus on digitalization and data-driven products and services.”

Aside from being left behind by more agile competitors who recognize the benefits of emerging technology, operating without SaaS platforms like Microsoft 365 and Google Workspace, will likely prove to be more problematic as more companies move to the cloud.

The nice thing about cloud-based services and SaaS systems is that they are accessible to construction companies of all sizes, with the same benefits offered to everyone.

The advantages of turning to cloud services and SaaS systems are numerous, but here are five ways the construction industry can reduce costs with cloud service providers.

1. Improved Communication and Collaboration

As anyone who has worked in or with the construction industry knows, construction projects often involve several project teams, all of which produce massive amounts of information and scattered data.

Information that isn’t organized or accessible by everyone on the project can lead to poor planning, delays in project delivery, and project cost overruns which means a smaller profit for the construction company.

Moving information to a cloud-based service means any of the project stakeholders can access critical data via smartphones, tablets, and laptops, making information usable, accessible and shareable. This means on-site workers will be able to view and comment on documents that are viewable by workers at other job sites, or even back at the office.

Improved communication and collaboration by the project team means no more rushing to and from a project site to collaborate or communicate about a project.

2. Improved Data Security

The number one cause of data loss is human error, and according to a recent IBM report, the average cost of a data breach in the construction industry was nearly $5 million.

When critical information lives on the cloud, it means all of your work is saved online on the provider’s servers. So even if you lose your smartphone, your laptop suddenly stops booting up, or you’re hit with a cyber attack, your project data is safe on the cloud.

Many organizations rely on cloud infrastructure for disaster recovery, knowing that cloud service providers often use multiple data centers to protect their data, to a degree. Some go a step further, and use a third-party SaaS backup solution to ensure their data is protected against natural disaster, accidental deletion or malicious data breach. Using an automated cloud-based SaaS backup platform, like Backupify, can minimize the costs associated with business continuity in the case of data recovery.

3. Improved Data Storage

Every construction company needs to save massive amounts of data when it comes to each project: plans, blueprints, and all related files. Some rely on physical storage such as paper files and hard disks. These two methods not only cost money for local physical storage space, materials, and labor, they are also susceptible to loss, damage, or theft.

Smarter companies use cloud storage, where they know their data is safe, secure, unlimited, and most importantly, accessible from anywhere. Cloud storage also allows team members to access the information, update the information, and sync it to all devices so everyone is seeing the most accurate and up-to-date information.

4. Reduce Costly Compliance Requirements

Most construction companies must maintain and manage IT systems to meet industry requirements, which is often a complex and time-consuming process. As smaller companies grow, oftentimes they’re building on existing, legacy systems that require more and more oversight to ensure compliance.

And, companies that work on (or hope to work on) Federal contracts are required to comply with even stronger security and IT standards. This often means increased expense for more IT staff time to ensure compliance.

Cloud computing means you can reduce your IT staffing costs, reduce (or eliminate) hardware upgrades and maintenance, and more importantly, shift compliance risks to your cloud provider.

5. Increase Scalability and Profits

Cloud-based services allow companies to increase their operations with minimal changes to staffing and effort. Automated systems can help manage staffing, equipment and even communication to stakeholders. All of these can translate into bigger profits.

On-demand scalability can provide more storage, more power, more versatility, more time, and most importantly, more savings. Cloud services can save growing companies by offering equipment and resources as needed, rather than making costly up-front investments on hardware and personnel.

Get Savings and Security with Backupify

With so much at stake, the construction industry can no longer afford to ignore the many benefits of cloud-based technology and SaaS services.

Along with improved access and data sharing, your company will be more competitive, agile and efficient.

And, when relying on cloud-based SaaS, don’t forget to make data security and backup a top priority. Luckily, Backupify can help you save money and protect your data.

Backupify can ensure that all your data remains safe, protected, and backed up on our private cloud. In addition to data backup, Backupify’s platform offers users data retention and user friendly lifecycle management–which also provide gyms with valuable savings.