Technology's Role in a Real Estate Development“Lead the Experience”

Mamduh AllamBusiness Development Manager, Real Estate Practice

Cisco’s Value Proposition to Developers

Connected Real Estate

Cisco Approach & Projects 

222

Agenda

Financial Benefits & Case Studies

Q&A

Cisco’s Value Proposition to Developers & Owners

Trends Shaping the Future of Buildings1. Population Growth

Doubled in 2nd half of last century; will reach 10 B in 2050

2. Infrastructure AdvancesBroadband and Internet fastest growing infrastructures ever 

introduced

3. Transformation Of OrganizationsAutomated > Enabled > Networked > Networked Virtual 

Organizations

4. Asset Utilization60% of Space is wasted

5. Energy Consumption & Environmental Impact “LEED”Buildings consume 50% of world’s energy; 90% of world’s electricity

Real Estate Owners Concerns

Attracting Residents & Businesses

Attracting Residents & Businesses

ProtectingAssets

Safety & Security

ProtectingAssets

Safety & Security

CreatingNew Experiences

CreatingNew Experiences

ReducingTotal Cost of Ownership

ReducingTotal Cost of Ownership

Increasing Stakeholder Value

Increasing Stakeholder Value

Addressing Sustainability 

“LEED”

Addressing Sustainability 

“LEED”

Operator Value

• OPEX reduction

• Productivity

• EHSS compliance

• Efficiency

• GREEN “LEED”

Operator Value

• OPEX reduction

• Productivity

• EHSS compliance

• Efficiency

• GREEN “LEED”

Owner Value

• Building lifecycle

• Differentiator

• $ value ROI

• Revenue

• Retention

Owner Value

• Building lifecycle

• Differentiator

• $ value ROI

• Revenue

• Retention

User / Tenant Value

• Human experience

• Simple interaction

• Brand attraction

• Media rich

User / Tenant Value

• Human experience

• Simple interaction

• Brand attraction

• Media rich

Creating Value for Users and Real Estate Owners

Creating Value for Users and Real Estate Owners

Creating ValueCreating Value

EnhancedPower Management

EnhancedPower Management

IntelligentLAN Switching

IntelligentLAN Switching

Auto VLANAuto VLAN Auto QoSAuto QoS

LinkSysLinkSysCarrier

SoftswitchCarrier

Softswitch

FirewallFirewall

WiFi NetworkingWiFi Networking

Dynamic DeviceDiscovery

Dynamic DeviceDiscovery

IntelligentTraffic Routing

IntelligentTraffic Routing

Network Access ControlNetwork Access Control

Secure VPN AccessSecure VPN Access

StorageStorage

CiscoWorksCiscoWorks

SeamlessMobility

SeamlessMobility

Dynamic User TrackingDynamic User Tracking

SRSTSRSTVideo AssociationVideo Association

WirelessWireless

IP CommunicationsIP Communications StorageStorage SecuritySecurityVideoVideo Data CenterData Center

ServicesServices Music-on-DemandMusic-on-Demand Service CentreService Centre

Smart Card PMSSmart Card PMS

Loyalty ProgramsLoyalty Programs

Digital Signage Digital Signage Asset TrackingAsset Tracking

Room AutomationRoom AutomationVideo ConferencingVideo ConferencingPhysical securityPhysical security IPTVIPTV WirelessWirelessVoDVoD

ConciergeConcierge

Energy ManagementEnergy Management IPTIPTBMSBMS Video SurveillanceVideo SurveillanceSystemsSystems

SecuritySecurity Digital SignageDigital Signage

Asset ManagementAsset ManagementVideo DeliveryVideo Delivery

BASBAS SafetySafety A/VA/VCablingCablingData CenterData Center

DevicesDevicesFire AlarmFire Alarm Access ControlAccess Control

HVACHVAC ElevatorsElevators

Data CommunicationData Communication

CamerasCameras

Voice CommunicationVoice Communication

TVTVSensorsSensors

RFIDRFIDLightsLights

Building ControlsBuilding Controls

CADCAD

ProcessesProcesses

Surveillance Data RetrievalSurveillance Data Retrieval

EvacuationEvacuation Guest ManagementGuest ManagementContent ManagementContent Management

Lost & FoundLost & Found

MaintenanceMaintenanceSupplier ManagementSupplier Management

Renovation and UpgradesRenovation and Upgrades

RegistrationsRegistrations

Facility OperationsFacility Operations

Service Oriented Building Architecture

Systems IntegrationCreate an Information Sharing Platform Between Systems

Systems IntegrationCreate an Information Sharing Platform Between Systems

Converged NetworkIndustry Standard Communication Backbone

Converged NetworkIndustry Standard Communication Backbone

Service CreationCreate Correlations Between Processes to Create Services

Service CreationCreate Correlations Between Processes to Create Services

7© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential

Connected Real Estate

s e r v i c e s

Enhance Building Performance

Connected Real Estate: Bldg Systems

Situation: Proprietary and DisparateServices Only Relevant to FMNon-InteroperableMaintenance & Operational Lock-in

Energy

Access

Surveillance

Fire HVAC

Elevator

Lighting

s e r v i c e s

Improve User Effectiveness

Connected Real Estate: IT and Comms

Situation: IP-based technologiesOpen, highly interoperable

The Network is the Platform

Energy

Access

Surveillance

Fire HVAC

Elevator

Lighting

InternetSignage

Media Telephony

Wireless

s e r v i c e s

Extending the Platformfor Transformation

One Network ‐ the 4th Utility

Solution: Building Systems move onto IPIntegration with IP Telephony

Gateways for Integration

Energy

Access

Surveillance

Fire HVAC

Elevator

LightingMedia Telephony

InternetSignage Wireless

Convergence: Introducing the 4th Utility

ElectricityElectricityGasGas

Essential UtilitiesEssential UtilitiesInternetInternet

4th Utility4th UtilityWaterWater

Reduce Cost and Complexity byReplacing Disparate Networks with One

Simplified, Flexible, and Scalable IP Network

Reduce Cost and Complexity byReplacing Disparate Networks with One

Simplified, Flexible, and Scalable IP Network© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 12

Integrated Operations Center

Integrated Operations CenterIntegrated Operations Center

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 13

Economies of scale benefits through integratingthe Network, Security, and Facilities Operations into

ONE Integrated Operations Center

Economies of scale benefits through integratingthe Network, Security, and Facilities Operations into

ONE Integrated Operations Center

Financial Benefits & Case Studies

Changing the TCO+ve

-ve

Time

5–100 Years

MaintenanceMaintenance RenovationRenovationReuseReuse

Increase RevenueNew business models,

managed services, intelligent building premiums

Increase RevenueNew business models,

managed services, intelligent building premiums

Reduce CAPEXSimplified installation,

reduced cabling, procurement options for building systems

Reduce CAPEXSimplified installation,

reduced cabling, procurement options for building systems

DecommissioningDecommissioning

Reduce OPEXSimplified management,

maintenance, operational efficiencies, energy savings

Reduce OPEXSimplified management,

maintenance, operational efficiencies, energy savings

Cas

h Fl

ow

OperationsOperationsDesign andConstructionDesign and

Construction© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 15

Time to Engage Your Technology Partner

Strategy Design Construction Operation

Building Systems Design Current Entry

IT Network DesignCurrent Fit Out Entry

15 - 20% 80- 85%

Life

cycl

eco

st

Building Systems & IT Infrastructure DesignProposed Entry

ExamplesCAPEX Cost Savings Due to Convergence

Barbizon 63New York CityBarbizon 63New York City

Building mgmt systemAccess controlsVideo surveillanceA/V intercomTelephony and wireless

Building mgmt systemAccess controlsVideo surveillanceA/V intercomTelephony and wireless

One America PlazaSan DiegoOne America PlazaSan Diego

Camera systemCard accessParking with validationHVACAutomation software

Camera systemCard accessParking with validationHVACAutomation software

The ShiresLeicester, UKThe ShiresLeicester, UK

Electronic systemsIntegrated triple playBuilding integrationStructure cablingInteroperable systems

Electronic systemsIntegrated triple playBuilding integrationStructure cablingInteroperable systems

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 17

EnergyFairmont HotelsEnergyFairmont Hotels

Electricity savingIntegration of:

LightHVACAccess

Electricity savingIntegration of:

LightHVACAccess

OperationsCisco SystemsOperationsCisco Systems

CCTV over IPCentralized controlIntrusion detectionTemp, leak detectionMonitoring

CCTV over IPCentralized controlIntrusion detectionTemp, leak detectionMonitoring

MaintenancePfizer UKMaintenancePfizer UK

Annual maintenanceIntegration of:

70,000 building pointCentralized opsUnified control system

Annual maintenanceIntegration of:

70,000 building pointCentralized opsUnified control system

ExamplesOPEX Cost Savings Due to Convergence

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 18

Customizable services and experiences can be created over the connected building and IT systems.

Connecting building systems affect OPEX and CAPEX; and pays for itself !

Return on Investment ‐ Examples

s e r v i c e s

BarbizonNew York City

1 America PlazaSan Diego

The ShiresLeicester, UK

14% 8.6% 15%

FairmontVancouver

energy savings

PfizerSandwich, UK

maintenance

Cisco SystemsSan Jose

security/surveillance

34% 15% 30%

• Cabling and cable pathways

• Labor and equipment

• Project management (design, implementation)

• Consolidation of servers for the systems

• Reduced training for personnel

• Simplified system configuration

• Wireless and Power over Ethernet

CAPEX SAVINGS• Service contracts, additions, remodeling

• Energy savings

• Improved load factor, coordinate supply

• Maintenance, repair and replacement

• Savings related to “productivity”

• Staff training, efficiency, IT support

• Cable and cable pathways, MAC

OPEX SAVINGS

Return on Investment (ROI) with Connected Real Estate

• Energy Savings – 12%

• Operational Savings – 10%

• Rental Rate Increase – 4%

• Occupancy Improvement – 4%

• Owner Occupied Building

– Energy & Operational Savings: Simple payback 4 years, ROI 95% over 5 years

• Developer Owned Building

– Occupancy & Rental Increases: Simple payback 1.4 years, ROI 265% over 5 years

Source: Building Intelligence Group

Annual Operating Cost Savings of Integrated Systems

Svc Contracts, Additions, Remodeling 32% Less

Energy Cost Savings $0.16 per SF

Improved Load Factor, Coordinate Supply 10% Less

Maintenance, Repair and Replacement $0.20 per SF

Savings Related to “Productivity” $0.39 per SF

Staff Training, Efficiency, IT Support 82% Less

Cable and Cable Pathways, MAC 39% Less

Svc Contracts, Additions, Remodeling 32% Less

Energy Cost Savings $0.16 per SF

Improved Load Factor, Coordinate Supply 10% Less

Maintenance, Repair and Replacement $0.20 per SF

Savings Related to “Productivity” $0.39 per SF

Staff Training, Efficiency, IT Support 82% Less

Cable and Cable Pathways, MAC 39% LessAdapted from: National Institute of Standards and TechnologyAdapted from: National Institute of Standards and Technology

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 21

Return on Investment (ROI) with Connected Real Estate

• Energy Savings – 12%

• Operational Savings – 10%

• Rental Rate Increase – 4%

• Occupancy Improvement – 4%

• Owner Occupied Building

– Energy & Operational Savings: Simple payback 4 years, ROI 95% over 5 years

• Developer Owned Building

– Occupancy & Rental Increases: Simple payback 1.4 years, ROI 265% over 5 years

Source: Building Intelligence Group

Site Reference in Dubai

Copyright ® 2006 The Fourth Utility, LLC

Building Systems List

Energy ManagementHVAC & Lighting Control SystemsFire Alarm and Protection ServicesElevators and EscalatorsPlumbing EquipmentAircraft Warning LightsFacility ManagementBuilding Security and Access ControlDigital Signage SystemsIP‐based Video Surveillance Systems (“IPVS”)Communications and Collaboration toolsSystems Integration

Copyright ® 2006 The Fourth Utility, LLC

Tennant Menu Card

• Cost avoidance ( $1 - $2 psf)• Operational savings ($0.50 psf)• New hard dollar revenue ($3 psf)

• Leasing / Marketing advantages• Faster move in • Tenant value / loyalty (stickiness)

• Frequent media coverage • Future-minded foundation• Continuous product development

Ballantyne Village

Approach & Projects

… Cisco collaborate with complex ecosystem

CiscoStrategic Advisory

Client / InvestorFinancialAdvisors

Arch /ConsultingEngineer

FinancialAdvisors

Arch /ConsultingEngineer

PropertyDeveloper

Main Contractor

Mechanical & Electrical Contractor

SteelworkContractor

Ground Works Contractor

Systems/Network Integrator

Fire & LifeSystems

BMS Contractor

Security Contractor

CCTV Contractor

CiscoAdvanced Services

Products

CiscoStrategic Advisory

Advisory Services Key Touch points

Launch and Operate

Construction

Ser

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Bus

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Impl

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Kno

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Sup

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pera

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Test

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Low

Lev

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esig

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isco

Com

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Tendering/ Detail

Schematic Design

Concept Design

Project ManagementProject Management

Development Lifecycle

System Integrator*LLD of 3rd Party, SI, Knowledge Transfer, Testing, Handover

Operator*

Sup

port

for T

ende

ring

*Non-Cisco Offering

Bus

ines

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rem

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and

G

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Bas

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Net

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The full cycle of our Engagement Framework maps to the Development’s Lifecycle

Current Projects• King Abdullah Economic City – Rabigh KSA• Al Akaria (Mall 4)• Dabab Towers (PPA)• Destiny USA - Syracuse NY USA• Westfield Malls – London, UK• JAFZA Convention Center- Dubai, UAE• Large Private Real Estate Developer – Dubai UAE• Ocean Park – Hong Kong • University Campus – India

Cisco Real Estate ProjectsProjects To Commence• Knowledge Economic City – Madinah KSA• Prince Abdulaziz bin Musaid Economic City – Hael, KSA• Large Private Real Estate Developer – Jeddah KSA• SAGIA – Riyadh KSA

Completed Projects• Ballantyne Village – Charlotte NC USA• Boston Properties – Boston, MA USA• Energy City Qatar – Doha Qatar• Citystars - Egypt• One America Square – San Diego, CA USA• Ave Maria University – Naples, FL USA

Cisco and Seera in the Saudi Press

Source: ALWATAN, January 212008

Cisco and Seera on CNNMoney.com

Source: http://money.cnn.com/news/newsfeeds/articles/marketwire/0350655.htm

Cisco and SAGIA on YAHOO!

Source: http://biz.yahoo.com/iw/080121/0350660.html

Project description:

• 3 Million Sq. Ft. Convention Centre• 22 meeting and conference rooms,• exhibitions halls• 700-seat modular auditorium• fitness centre• recreational area• 22 retail outlets• twin-tower commercial building:• 1,274 offices, a 322 – room four star hotel• 4,100 space car park• Located in the Jebel Ali Free Zone, Dubai, UAE

JAFZARequirement:

• JAFZA has assigned Cisco as its technology consultant for the Design, Tendering, Construction Supervision, Testing and Commissioning

• The intent of the customer is to deliver a “state-of-the-art” intelligent building

• The Real Estate framework will be based on the IP Network as an additional utility to water, gas and electricity

• Jafza Convention Centre Complex project is set to realize significant benefits in:

• process efficiencies• simpler operations • higher workforce productivity• reduced CAPEX and OPEX• superior security• Revenue generating services