1 of 18

Creating sustainable, efficient, and cyber secure building operations

Property of Schneider Electric

Modernizing your Building Management System (BMS)

Internal

One of the consequences of the Covid-19 pandemic has been a focus on the role of buildings. As more people work

from home, building owners are looking for ways to adapt and innovate.

In this new environment, those owners are seeing low occupancy levels for hotels and offices, but high demand

requirements for critical facilities. Interestingly, despite what might be characterized as a once-in-a-generation

societal shift, forecasts still project that building stock will continue to grow — from 102.9 billion square meters in

2019 to 183.5 billion square meters by 2026.

Moreover, we are seeing that the electrical and digital transformations that were already underway are now going

into overdrive.

Both building owners and facility managers are facing the challenge of doing more with fewer resources. They need

to ensure cybersecurity, enable remote operations, and improve the use of space — all while reducing energy costs

and supporting their sustainability goals.

To survive — and, indeed, thrive — in this new environment, you will need to tap into the power of the all-digital,

all-electric world with a more sustainable, more resilient, more efficient, and more people-centric building. This is

where Buildings of the Future comes in.

2 of 18

The four pillars of a Modern Building

Sustainability

~40% of global CO₂ emissions comes from operational energy use

>30% of building �energy is wasted

Property of Schneider Electric |

Page 2

Resiliency

38% of BMS �are impacted by cyberattacks

Hyper-efficiency

+1.4% increase in global productivity as a result of advances in automation and technology

People-centric

~90% of our time is spent in buildings

Internal

Let’s look at the four pillars on which Buildings of the Future are based.

CLICK

The first is sustainability, which we have already alluded to. Buildings must adapt to new directives in order to get

new certifications such as LEED, WELL, Fitwel.

What’s more, facility managers need to track metrics related to carbon savings and “green” KPIs, including

integration of on-site renewable energy resources. IP-based products have exploded onto the marketplace of late to

answer this need. It’s clear that buildings will need to participate in active energy management to achieve more consistency and

efficiency.

CLICK

Next, we have resiliency.

Elevating building management to the cloud means facility managers must ensure systems are cybersecure and

meet all the latest standards to avoid malicious attacks.

Another result of the pandemic has been a reduction in the number of on-site facility managers, making remote

access to and control over building systems more critical than ever.

CLICK

The third is hyper-efficiency.

While new tools do empower facility managers to drive business revenue, limited budgets, and fewer skilled people

to operate systems, there is a need to manage technologies and tasks even more efficiently than before.

Similarly, there is a need to also improve operational efficiency by using automated tools to help move from

planned preventive maintenance to a more proactive approach.

CLICK

The last pillar for Buildings of the Future is people-centric.

Here, the comfort, health, and wellness of your buildings’ occupants becomes a value-added differentiator.

Additionally, hybrid working models are becoming more common, and so office space and infrastructure must be

flexible enough to adapt to changing requirements and uses.

3 of 18

Why BMS modernization matters

Property of Schneider Electric |

Page 3

Sustainability

reduce energy usage and costs, drive energy efficiencies

Resiliency

reduce cybersecurity risks, recover more quickly

Hyper-efficiency

maximize building performance through system/workflow optimization

People-centric

improve use of space, enhance occupant experience

Internal

Modernization of your Building Management System (BMS) has numerous benefits, as you can see. Importantly, it

can help achieve the four pillars of Buildings of the Future that we just reviewed.

CLICK

With a modern BMS, for instance, you can reduce energy costs, consume less energy, and make more informed

decisions. Not only will this support your sustainability goals, but it will also drive energy efficiency and building

certifications — and will extend the life of your real estate assets.

CLICK

When it comes to resiliency, a modern BMS means a building can bounce back quickly, as a more cybersecure

platform significantly reduces the risk of cyber threats or even attacks. It also enables remote operations in cases

where there is no on-site facility management.

CLICK

A modern BMS optimizes the system and workflow and provides the tools you need to do more with fewer

resources. These tools include automating operations, real-time monitoring and performance analysis, data

integration across platforms and systems — all resulting in hyper-efficiency.

CLICK

Modernizing your BMS also allows you to improve the use of space in your buildings, enhancing the occupant

experience by creating a comfortable, healthy, and predictive environment.

4 of 18

YOUR BMS IS OUTDATED �— SO WHAT?

Property of Schneider Electric |

Page 4

Internal

5 of 18

The risks of not updating your BMS

Property of Schneider Electric |

Page 5

Frequent failure of equipment

Limited data insights

Harder to achieve & demonstrate sustainability targets

Cyber-risk

Reduced performance and functionality

Unavailability of legacy products

Internal

By not modernizing your BMS system, you might be risking efficiency, productivity, and profitability.��The overall functionality of a building might be impacted, and lead to unnecessary expenditures, both in terms of time and money.

�CLICK�Cyber-risk�With 38% of older buildings impacted by cyber threats, not updating your BMS might make your building a target for a malicious attack.

If your systems are outdated, they are much more at risk of cybersecurity threats and must have the latest cybersecurity standards in

order not to pose disruptive risks to overall business. Having the latest software and security updates will help you fend off threats.�

The risk with our legacy systems is that we can no longer update their operating systems and so their operating systems become unsupported, by the likes of Microsoft.

Thus, they are not supporting the latest cyber security features. So upgrading to the latest EcoStuxure platform will help you fend off threats.

It’s also more and more common for Risk Management to demand your BMS be up to date.

CLICK

Unavailability of legacy product

The other significant risk of not updating of the BMS is the unavailability of legacy products for spare parts or system extensions.

Over time, the legacy system products reach their end of life as components become limited or worse unavailable.

As products near end of life during service period, costs of the components and manufacturing rise, since we are making fewer numbers, and these costs are reflected in product prices.

But in time, when failures do occur, replacement products are not available, and the risk to the having a system not functioning is very real. ��CLICK

Harder to Achieve & Demonstrate Sustainability Targets�There are numerous BMS functions that can enhance economic, environmental, and social sustainability: these include energy efficiency, reduction of carbon emissions,

reduction of energy consumption, ensuring the health and well-being of occupants, and extension of building’s lifespan.��A property with a modernized BMS can easily qualify for various certifications. What’s more, a modern BMS more easily helps facility managers achieve newly created sustainability KPIs.

One of the great challenges for facility managers is to be able to demonstrate that improvements and savings have been made in a simple method for all to understand. This is very difficult to do with legacy systems.��Active energy management is only as good as the data and insights that you have: energy use, power quality, reliability, etc. Without such data,

greenhouse gas emissions can’t be measured or managed, making compliance more difficult. Today’s BMS technology provides intelligent energy

analytics to support accurate sustainability reporting, helping simplify compliance with the Energy Performance of Buildings Directive (EPBD) in Europe

or standards such as ASHRAE Standard 90.1.��Modern BMS technology advances help explain precisely when and where energy is consumed and how to optimize BMS settings — that goes way beyond just HVAC control.

CLICK

Frequent failure of equipment

An obsolete building management system can lead to frequent failure of equipment, as components start to fail more often over time.

When it comes to BMS modernization, timing is key: it is a lot more cost-effective to gradually upgrade and improve parts of the system

over time rather than replacing the entire system at the end of its life.

CLICK

Reduced performance and functionality

Also, the performance of your building might suffer by not modernizing your BMS. Especially given that more than 30% of a building’s energy is wasted.

Although the legacy systems were able to manage the energy, they do not have the modern tools and flexibilities to help implement the most effective solutions,

and so no modernizing inevitably reduces performance of the building compared to one with a modern system, such as EcoStruxure. The greater range of functionality in EcoStruxure enables the improved performance.

CLICK

Limited data insights

If the mantra in real estate is location, location, location, then the mantra in Buildings of the Future is data, data,

data. Things are moving faster towards predictive maintenance — e.g., AI — with new generation systems having capabilities

unheard of even a few years ago. More data, and more insightful data, can help you better manage and optimize

buildings, and ensure you can adapt to the changing needs of your occupants, or changing market conditions.

Legacy systems do not have this capability or functionality, and will prevent taking advantage of more data, as well as different types of data.

Add to that the fact that lack of data insights also limits efficiency and scalability, which in turn can negatively impact sustainability goals.

6 of 18

And the risk is increasing with time…

Property of Schneider Electric |

Page 6

Timing is the key

Value

Criticality

Keep up to date

Software obsolescence

Hardware obsolescence

Out of service

3 to 5 years

Annually

~15 years

~20 years

Internal

And the risk is increasing with time. While most Mechanical and Electrical Systems hold value for 15 to 30 years, building management systems software should ideally be updated every 3 to 5 years in order to ensure smooth operation and maintain building value. As you can see on the graph, the level of challenges increase criticality over time:

1. Keep up to date: Modern BMS will offer software assurance as the vendor performs continuous updates so that you can ensure you are operating with the newest version and applying the latest bug fixes, UI/UX or performance enhancements, and security updates. These may be annually, but often for bug fixes and special security features, they are often more frequent. Software Assurance models enable this challenge to be met in a structured manner to meet your opex budgets.

2. Software obsolescence: Once a vendor has stopped developing or upgrading BMS software, it will suffer compatibility issues with newer hardware (e.g., devices, PCs). Moreover, the software will fall out of standards compliance, reducing protection against cyber-attacks.

3. Hardware obsolescence: It may no longer be possible to update old technology and architectures, with no possibility for capacity expansion to support today’s needs.

4. Out-of-service risk: At this stage, system software and hardware can no longer be supported, parts become unavailable, and service expertise is hard to find.

7 of 18

Attributes of a modern BMS

Is it designed for cybersecurity?

Property of Schneider Electric |

Page 7

Does it help you meet newest sustainability requirements?

Does it provide a platform for future smart buildings?

Is it data-centric and does it give deep visualization and analytics?

Does it provide “IT agility” and is scalable?

Does it support a wide range of smart devices?

Is it flexible enough to address changing needs?

Internal

What should a modern BMS be capable of? Let’s answer these questions!

CLICK�First, it needs to be designed for cybersecurity — following the standards and best practices for product and system development,

testing, installation, and operation.��CLICK�Next, it should help to meet all of your newest sustainability targets. A modern, next-generation BMS provides the tools needed to fully optimize

energy use and comply with growing societal pressure and governmental climate regulations.��CLICK�Smart buildings focused on people centric applications such as people counting to control plant more efficiently, or IoT sensors to provide a full view of Indoor Air Quality, require a BMS with a robust scalable IP architecture. This is not available with legacy systems.��CLICK�It should be data-centric, equipped with deep visualization and powerful analytics, intelligent functions that help you reduce operating expenses

and help your facility team identify, isolate, and respond to risks quickly without doing constant preventive checks. Data-drive: it can

communicate with other building sub-systems��CLICK�It should be able to provide ‘IT agility,’ using an easy-to-scale architecture with unlimited capacity, capable of aggregating information

from across your entire building portfolio.��CLICK�Our customers need a system that can use a wide range of smart devices including smart phones, tablets, that can provide simple effective remote access to the system via web browser or apps.��CLICK�Lastly, a modern BMS should be adaptable to changing tenant/occupant demands. With mobile apps and services, you can create a

more engaging experience and meet the needs for the space for tenants and employees.

8 of 18

The way forward with Schneider Electric

Start with a step-by-step plan

Property of Schneider Electric |

Page 8

Identify quick and self-funding modernization opportunities

Upgrading software and hardware costs less than replacing entire system

Modernizing your BMS can be ….

Cost-effective

Simple

Seamlessly integrate new platform with third-party or native systems

Can be achieved in a phased approach with minimal interference to business operations

Enable reducing of maintenance costs through creation of dedicated transition plans

Internal

You answered the questions, and you don’t have the Modern BMS?

Don’t worry as with our solutions, you can modernize it and you can do it with the cost-effective and simple approach.

Cost-effective

Contrary to what you might think, modernizing your BMS does not have to be capital-intensive. By starting with a

step-by-step plan, you can identify quick modernization opportunities that not only optimize your investment but

will pay for themselves. In this way, you are maximizing the lifetime value of your existing system infrastructure.

It’s worth noting too that the cost of upgrading software and hardware is a fraction of the cost of replacing the entire

system. A transition maintains all the field devices and installation wiring, but more importantly enables the database and system configuration to be maintained.

And in the cases of Continuum and Xenta, maintaining of the controller programs, so preventing the requirement to re-write the application code

Front-end modernization enables you to leverage the latest technologies that optimize the operations of

your buildings so you can deliver a secure, capable, and serviceable BMS platform with minimal future upgrade

efforts. With dedicated transition plans you will be able to reduce the maintenance costs and avoid unexpected expenses.

Simple

The step-by-step plan is not only cost-effective but also reduces risk at each stage. With the plan tailored to your budget, timeline and technical needs

you can achieve modernization in a phased approach with minimal interference to business operations.

Lastly, but perhaps most importantly – you don’t need to replace your current equipment – modernization is a seamlessly integration with

third-party or native systems.

9 of 18

Property of Schneider Electric |

Page 9

What modernizing with Schneider Electric mean?

Getting EcoStruxure™ Building Operation 2022 that is:

Open�Maximize opportunities with end-to-end IP solution

Scalable�Improve operational efficiency

Automated �Simplify support and troubleshooting

Data-centric�Deliver deeper insights and tighter control

Cyber-secured�Provide best-in-class cybersecurity

Page 9

Property of Schneider Electric |

Internal

The benefits of modernizing with EBO are clear:

It will help you maximize opportunities with an end-to-end IP solution. With EBO, you can take advantage of the

latest IP-enabled hardware and software for faster and more reliable communication and better data. An open �platform means easy system-to-device integration with new automation servers and field devices or existing

third-party hardware.

It will improve operational efficiency. You will be able to better manage and indeed optimize your buildings with

features that save both time and effort. For instance, you can automate your operations with anywhere/anytime

access to reports, scheduling, advanced alarms, SMS notifications, and zoning presets.

EBO will allow you to simplify support and troubleshooting. You’ll be increasing engineering efficiency and lower

maintenance costs using the built-in system analytics to monitor and report BMS health data across multiple

systems and portfolios. As part of your contract, the software will always be kept up to date.

You’ll gain deeper insights and tighter control. Imagine getting the visibility you need to better manage and optimize

building assets. Imagine getting faster access to navigation, “enterprise central” portfolio-wide views, and

comprehensive reports, historical data, trends, and schedules. Imagine using customizable charts and graphs to

convey massive amounts of data to diverse audiences. Or using personalized kiosks and enhanced dashboards to

see the status of a whole building or single piece of equipment. Imagine receiving alarm notifications with detailed

reports or utilizing sensors/systems integration and automated asset control to improve occupant comfort. This is a

genuine experience, letting you access the system from smartphones, tablets, or laptops.

You can count on best-in-class cybersecurity. We’ve already talked at length about how vital it is to protect yourself

from cyber-attacks. With EBO, all software, hardware, and systems are cyber secure and follow a secure development

lifecycle, with third-party certification of standards compliance. This security encompasses the transport layer,

object level, email, passwords, access control, and much more.

10 of 18

Transitioning from legacy lines to EcoStruxure™ Building Operation

Create �a plan

Property of Schneider Electric |

Page 10

1

Replace legacy software

2

Replace legacy hardware

3

Your three-step path to modernization

Internal

11 of 18

Step #1: Create a plan

Your plan should consider:

Your budget
Your current operational needs
Your future expansion plans
Any contingencies
Spare parts needs

Property of Schneider Electric |

Page 11

Value

Criticality

Keep up to date

Software obsolescence

Hardware obsolescence

Out of service

Timing it the key when creating your customized modernization plan

Internal

12 of 18

Step #2: Replace legacy software

Property of Schneider Electric |

Page 12

Upgrade your front end to EBO keeping controllers as-is:

Prepare plan for hardware modernization before end of service.

Let’s you reap benefits from start

Helps maximize ROI on existing hardware

Internal

13 of 18

Step #3: Replace legacy hardware

Property of Schneider Electric |

Page 13

Process can be phased depending on your specific replacement strategy:

Upgrade by network branch
Upgrade by hierarchy – plant/zone
Ad hoc field replacement as needed

Outcome

Future-ready buildings with connected products and services will increase in value

And the most importantly…

The front-end replacement is backward compatible – it can seamlessly integrate into existing hardware, avoiding the need to replace existing controllers and devices

Internal

14 of 18

Connected products, connected services

Property of Schneider Electric |

Page 14

Flexible for both larger and smaller buildings
Scaled pricing
Satisfies network security requirements
Guaranteed cybersecure, from factory to installation
More advanced integration capabilities

Helps create future-ready space
Remains connected to installed base with transition and replacement options in MSTP networks
Provides platform for IAQ and demand driven ventilation
Features improved power provisions

SpaceLogic Room Purpose Controller

SpaceLogic Automation Server

Help design your building’s future
Simplify maintenance
Improve comfort
Optimize performance
Extend asset life

Adding Building Advisor platform will:

Internal

For those looking to boost their buildings’ values — which is probably everyone — the key is to ensure you have both

connected products and connected services. Key products in the transitions are the SpaceLogic Automation Server and Room Purpose Controller.

They have multiple benefits and help to improve the value of your facility.

With a modern BMS comes the opportunity to access additional platforms. One such platform, trusted by countless

customers, is called Building Advisor, which helps design the future of your building.

The main benefits of Schneider Electric’s Building Advisor platform are that:

It simplifies maintenance, prioritizing issues that need to be fixed based on their impact on energy, comfort, and

equipment.

It improves comfort by identifying any IAQ issues that might lead to discomfort or an unhealthy environment.

It optimizes performance by detecting, diagnosing, and correcting energy waste due to, say, an inefficient HVAC

system.

Lastly, but arguably most importantly, it extends asset life in a building by identifying critical issues before they

escalate to failures. It does this via condition-based monitoring.

To achieve the goals that we outlined at the very beginning – creating buildings that are sustainable, resilient,

hyper-efficient, and people-centric — you need a robust Building Management System. And Schneider Electric is

uniquely positioned to help you evaluate your needs, develop a plan, modernize your BMS in an efficient manner,

and ensure any solutions deliver optimized performance today — and for a long time to come.

15 of 18

The benefits are clear, the future is bright

Modernization of BMS with EcoStruxure™ Building Operation will:

Property of Schneider Electric |

Page 15

Reduce vulnerability to cyberattacks

1

Meet sustainability goals by improving operational and energy efficiency

2

Help avoid breakdowns, downtime, and high maintenance costs

3

Be approached with minimum business disruption

4

Increase building’s value

5

Internal

16 of 18

WANT MORE �INFORMATION?

For more information on modernizing your �Building Management System, download our white paper �[Link to white paper]

Property of Schneider Electric |

Page 16

Internal

17 of 18

Internal

18 of 18

FAQs

Property of Schneider Electric |

Page 18

Internal