In December 2011, the New York Times reported that only one third of companies had insurance against losses related to their information technology. Generally called, Cyber Insurance, this protection gained a foothold during the 1990s. For AEC businesses using the cloud, cyber insurance can be the backstop to scenarios where the best laid security plans didn’t work out.
According to a U.S. government report:
Cyber-insurance is an insurance product used to protect businesses from Internet-based risks, and more generally from risks relating to information technology infrastructure and activities. Risks of this nature are typically excluded from traditional commercial general liability policies. Coverages provided by cyber-insurance policies may include first-party coverage against losses such as data destruction, extortion, theft, hacking, and denial of service attacks; liability coverage indemnifying companies for losses to others caused, for example, by errors and omissions, failure to safeguard data, or defamation; and other benefits including regular security audits, post-incident public relations and investigative expenses, and criminal reward funds.
While estimates of total premiums being paid for cyber insurance currently rest in the hundreds of millions range, there are those who are predicting a 50 percent growth in that number during the next 12 months, according to the New York Times article. The thing is that, IT has not been traditionally involved in insurance planning, yet those are the people who are most familiar with the potential risks. When you add a general low understanding of just what is covered and what is not covered by insurance policies, the stage is set for surprises when things go wrong. Just like with homeowners’ policies, business policies have many exclusions. In one example cited in a Computerworld article this year, the cost of a damaged server is generally covered under business insurance policies, but not the cost of liability associated with NOT providing contracted services to a customer. Likewise, data loss, and not being able to access data is usually not covered.
While cyber insurance was initially focused on protecting companies when data breaches occurred, today’s adoption of the cloud adds a whole new level of complexity to insuring against cyber losses. Vendors of cloud computing products and services aren’t going to insure your losses, so it falls to you. But the risks now extend beyond the cloud and to all of those mobile consumer devices being brought to the job by employees. You can bet your standard business insurance isn’t going to cover any problems that arise from company data breached on an employee’s hardware. So far though, it is generally assumed that cyber insurance policies will follow the risks to their natural destinations.
In 2010, every breached data record cost companies more than $20 and the costs can be staggering, going beyond just the data loss or compromise to lawsuits for damages brought by those whose data was affected. One sobering example was Sony’s experience with more than 100 million records breached. Cyber insurance in many cases should be a no-brainer with that kind of potential for loss. However, many companies resist buying the coverage because cyber insurance policies can cost up to 4 percent per million. With potential losses running in the hundreds of millions for large events, the outlay could appreciably increase a firm’s annual insurance expenses.
The experts say a thorough assessment of the risks is the place to start when deciding if a cyber insurance policy is needed. For those moving to the cloud the urgency in doing that is increased, and it might even be considered as a final component to a complete cloud security plan.
It appears more and more firms are moving their project collaboration efforts to the cloud as evidenced by GreenWizard’s growth. The company announced that its cloud-based collaboration offering is handling projects valued at $8.75 billion in total. The company says it has added more than $800 million in just the last four weeks. Besides demonstrating the movement to the cloud, that number may also point to the continuing upbeat economic outlook of the construction sector.
Collaboration is one of the first business processes many construction, architecture and engineering companies try out in the cloud. GreenWizard is described by the company as a comprehensive product management software and project collaboration provider. It enables companies in the design and construction businesses to manage products and project data, collaborate on projects, assess LEED design and construction credits, integrate with LEED Online, and archive projects. The company says these tools simplify the process of building healthy, sustainable and efficient construction projects. Building owners, architects, engineers and contractors can use GreenWizard’s WORKflow(R) Pro solution at any phase of a building project.
Adam Bernholz, GreenWizard’s founder and CEO said:
GreenWizard is widely regarded in the construction sector as the leading product management and LEED credit modeling tool. Now, with so much project value running through our system, manufacturers and suppliers are increasingly recognizing GreenWizard’s unique capability to serve as a dynamic, data-driven, persistent product marketing tool.
These kinds of cloud tools also offer opportunities for manufacturers who are eager to influence product specifiers at the point of product specification or point of purchase.
14% of small to medium-sized businesses claim to have increased their understanding of cloud-based options over the past year.
Fonality, a North American business communications company, recently released the results of a comprehensive survey conducted by Webtorials, which measured 2012 communications goals and challenges for small and mid-size businesses (SMBs). The “2012 Small and Medium-Sized Business Communications Plans and Priorities State-of-the-Market Report” revealed a 14 percent increase in the sector’s understanding of cloud-based service options from last year. However, optimizing the total cost of operations (TCO) still remains the top priority for SMBs. Fonality’s CEO, David Scult, remarked on the findings, saying:
It is encouraging to see that SMBs are taking the initiative to learn more about cloud-based services. As awareness about the benefits of cloud solutions gains momentum, these findings suggest that SMBs are beginning to connect the cost-saving potential of these services to their overall mission of reducing expenditures and minimizing TCO. While controlling costs by investing in new technology seems contradictory, cloud-based communications tools, in particular, can be leveraged to drive competitive differentiation and maximize operational expenses. As a result, this technology can help spur growth through enhanced productivity and efficiency.
Key findings of the study include:
- Containing cost and reducing TCO remains the primary goal for SMBs in 2012
- Education about the capabilities of cloud-based technology has significantly increased and is perceived as a “great equalizer” against larger competitors
- Flexibility and mobility with communications solutions are gaining importance with almost one quarter of respondents
- Need to provide access to communications solutions for remote employees, cited by 85 percent of respondents
To access the complete “2012 Small and Medium-Sized Business Communications Plans and Priorities State-of-the-Market Report,” visit http://www.webtorials.com/content/2012/01/2012-smb-plans.html.
With system-agnostic solutions designed specifically to meet the individual communications needs of SMBs, Fonality offers VoIP, UC and contact center desktop and mobile solutions that it claims are simple to use, easy to manage and affordable to deploy. The company’s cloud-based model provides the same services of traditional IP systems without costly hardware, infrastructure or lengthy implementation cycles, according to the company. Fonality also says total cost of ownership is dramatically reduced by 50 percent, or more, while users enjoy access to powerful communications services usually reserved for the largest of companies.
AEC businesses that are bringing iPads to the job can get a new, free tool for viewing and marking up large, complex 3D models. The CadFaster application for the Apple iPad®, is available for free in the Apple iTunes App Store. Raimo Kuismin, chairman, CadFaster says:
Our customers are using this app on their iPads to share their models with anyone, anywhere and improve their productivity while they themselves are on the go. We’ve listened to our customers’ feedback and have updated the interface and added support for new features so that it not only saves more time, it’s easier to use. Using our add-in software, compression ratios can be up to 20 times the size of the original model size.
According to the company, most 3D model viewers are generic purpose viewers, with navigation functionalities limited to 3D orbit, pan and zoom. CadFaster|Collaborate™ offers a “natural building explorer environment” which includes a new walk-through mode that allows inside point-of-views of interiors and design details and possible collisions with disparate design elements. For ultimate portability, the 3D models are highly compressed before they are exported and stored in a cloud database. The app also includes demo models to work with.
What’s New in the CadFaster iPad App:
- Walk-through navigation mode
- Turntable navigation model (Z axis lock)
- Fine-tuned user interface for 3D model navigation
- Support for landscape orientation in 3D views
- Support for model measurement during co-browsing sessions
- Various user interface improvements
Options to use the cloud for construction processes have actually been around quite awhile. In 2006 Textura was was providing a revolutionary way of processing construction pay applications using the cloud. Three early adopters, T. Gerding, Meili and Chambers, shared some of their experience with Textura Construction Payment Management (CPM) and the cloud.
“Since 2006, Chambers has managed their entire payment process with Textura,” stated Deborah Creager, Chambers Construction’s controller. “Some of the best features provided by Textura include electronic invoicing, document tracking, automatic notices, ACH payments and allowing architects and owners to electronically review and approve invoices on-line. Textura has moved our payments up by 10 days, reduced costs, saved labor and sped up the change order process for us. The integration between our ERP system and Textura has resulted in much less data entry than before.” She also added, “The Textura payment process has made it easier for us to support smaller subcontractors and Oregon MWESBs by facilitating a simpler, on-line payment process that fits in with a smaller business’ staff availability.”
Sue Race, Meili construction controller added:
When initially asked ‘why use Textura?’ I responded ‘why not?’ Bringing the invoicing process online only made sense. The efficiencies in using Textura were evident by managing our invoices and payment process to our subcontractors electronically. Textura helped drive the implementation of a work flow and simplified the communication between our accounting and project management teams.
Julie Haymart, T. Gerding Construction treasurer said:
Because of subcontractor familiarity with CPM and Textura’s commitment to training and support, the adoption and implementation process was easy. After our initial meetings with Textura we had projects up and running within weeks. What surprised us the most was that even a year into implementation of CPM, Textura still provided continued assistance for us, as well as our subcontractors.
These contractors have seen dramatic improvements in CPM over the last six years, including the addition of compliance tracking, sub-tier waiver functionality, faster performance and enhanced reporting. Many of these improvements were their suggestions gathered during periodic feedback sessions. Patrick Allin, Textura chairman and CEO, commented:
We are proud of our longstanding, strong relationships with Meili, Chambers and T. Gerding. To establish such a strong market presence so early in our corporate life was important to our success. It also demonstrated the value proposition we offer both general contractors and subcontractors. Our wide scale adoption in Oregon was a key indicator of the efficiencies and risk mitigation that CPM provides – and the forward thinking nature of these market-leading general contractors. By becoming the norm for construction invoicing in that region, the subcontractor community has a consistent process for billing with their general contractors.
“Having multiple general contractors using CPM in a single market provides benefits for everyone,” states Megan Chappo, Textura client services manager. “Our general contractors work with subcontractors who are already familiar with CPM and gain the internal efficiencies CPM enables. Subcontractors have a consistent billing process for all their general contractors. Textura strengthens its customer relationships.”
Benefits to both general contractors and subcontractors are greater when Textura is adopted as the platform of choice in a geographic market. This is evident in by the widespread use of CPM in the Oregon market.
About Chambers - Chambers Construction, based in Eugene, OR and founded in 1955 is an integral part of history in the Pacific Northwest – from Eugene to Seattle – building commercial office spaces, industrial warehouses, communities, store fronts, apartments and more while remaining dedicated to green and sustainable building practices. Please visit www.chambersconstruction.com for more information.
About Meili - Meili Construction, based in Eugene, OR, has over 40 years of construction experience. Meili’s family business is recognized as an innovative and reliable resource for construction projects statewide, building commercial and industrial spaces. Please visit www.meiliconstruction.com for more information.
About T. Gerding - T. Gerding Construction has been building commercial, industrial and institutional projects in the Pacific Northwest since 1969. As a licensed contractor in Oregon and Washington, T. Gerding delivers excellence in construction as general contractor, design-builder or CM/GC. Please visit www.gerdingcompanies.com for more information.
About Textura - Textura is the leading provider of collaboration and productivity tools for the construction industry. Our solutions serve all construction industry professionals across the project lifecycle – from design and pre-qualification to bid management, submittals and payment – on a single, integrated platform. Textura’s collaboration platform and online product suite represent the first time the industry has all the tools needed to manage their business in an integrated fashion to save time and money and reduce exposure to risks. With award winning technology, world-class customer support and consistent growth, Textura is leading the construction industry’s technology transformation. www.texturacorp.com
SOURCE Textura Corporation
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