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Smart Workplace Software Buyers Face A Dramatically Different Software Landscape From 2022

As the volume of M&A across the smart workplace software market reaches an all-time high, customers will face a dramatically different software landscape in 2022 and beyond. Firms looking at replacing their workplace software provider or selecting a new solution must start thinking more strategically about vendor selection.

A key factor driving the fast pace of change in the smart workplace software market is the increasing level of investment flowing into the sector. This is enabling traditional suppliers to expand their product line with acquisitions and innovate faster. As an example, private equity-backed MRI recently acquired IWMS providers FSI and Trimble’s Manhattan, as well as visitor management provider WhosOnLocation. Similarly, Accel-KKR-backed FM:Systems has made a string of acquisitions in the space management software market, such as visitor management software supplier WizzPass in June 2021.

In general, these developments are positive news for customers. Private equity investment is enabling established players to modernize platforms and acquire more innovative products. A good example is SpaceIQ, which following its investment from JMI Equity enhanced its user interface and extended its product portfolio with best-of-breed software solutions for space management, such as Serraview and SiQ. Planon’s recent acquisition of IoT platform provider Axonize will help it bring greater scalability and speed to its IoT data collection capability.

At the same time, the drastically changing supplier landscape means buying a workplace software solution is getting more complicated. As providers make a growing number of bolt-on acquisitions, buyers need to understand the impact of multi-product solutions on project implementation and total cost of ownership. Secondly, buyers will need to use software demonstrations to test how well such solutions truly work together to meet their key requirements. Finally, software customers must have frank discussions with potential suppliers on any functionality they plan to retire.

As corporate facilities executives explore new digital solutions to assist with the return to office and hybrid working, they must take a more strategic approach to supplier selection. Customers must move beyond apples-to-apples comparisons of single applications to a wider analysis of providers’ broadening software portfolios. For more insights into the evolving software landscape, read our report Verdantix Smart Innovators: Smart Workplace Technology.

SB Smart Workplace Software Buyers Face A Dramatically Different Software Landscape From 2022

Susan Clarke

Research Director, Smart Buildings, Verdantix
Verdantix
Verdantix

Susan leads the Verdantix Smart Buildings practice. Her current research agenda focuses on software solutions for real estate management including integrated workplace management systems and IoT platforms for buildings. Her research expertise also includes a broad range of energy management technologies and energy services. Susan has eight years of experience in technology research. She holds a MSc from the University of London in Sustainable Development.