RedstoneConnect Signals Its Commitment To Smart Buildings Via Rebrand To SmartSpace Software
On July 31, 2018, RedstoneConnect announced it has changed its name to SmartSpace Software to reflect a new strategic focus on providing software to optimize commercial buildings. Specifically, SmartSpace Software sees opportunities related to improving occupant experience and space optimization in the commercial office, hospitality and retail sectors. This rebranding has been accompanied by significant restructuring of the company; in May 2018 SmartSpace Software announced it has sold off its Managed IT & Systems Integration divisions for £21.6 million ($27.8 million) to Excel IT (now branded ExcelRedstone). This downsize enables it to narrow its focus on solutions to optimize space efficiency within real estate portfolios, where it already offers the OneSpace platform for space usage monitoring and occupancy management.
Verdantix finds that SmartSpace Software’s strategic shift is a timely one. In our recently published market size and forecast study, we found the space and workplace management segment to be one of the fastest growing areas of the smart building software market. Our research shows this segment is growing at 14% annually globally, with growth as high as 22% annually in APAC. A key driver is that growing rental costs are forcing this topic up the real estate agenda. Estate agency Savills finds that aggregate rent expenditure across all industries increased by 14% in fiscal year 2016 compared to 2010. In addition, the better availability of space data from growing sensor deployments is enabling a new generation of more sophisticated solutions.
But this attractive market is becoming an increasingly busy one. Through 2018 there have been numerous product launches in space management by a broad range of technology vendors including Honeywell, Schneider Electric, Siemens, Signify, Skanska, NFS Technology Group and Trimble. We expect the flurry of product launches to continue as software vendors have told Verdantix they perceive the barriers to launching simple space tracking solutions to be low.
All that said SmartSpace’s broad and comprehensive suite of functionality, as well as specialist functionality for hospitality and retail provides it some good angles of differentiation. To learn more about innovative software solutions that support space and workplace management in commercial buildings read the Verdantix report Smart Innovators: Space Management.