6 Secrets to Cutting Building Costs with IoT - Blog | Daikin Applied




6 Secrets to Cutting Building Costs with IoT

6 Secrets to Cutting Building Costs with IoT

Every building owner and facility manager looks for the crowbar that can pull costs out of their operations. Building automation can be that tool—but only if you know how to leverage it. An obvious place to start is with HVAC, which consumes 40% of the typical building’s energy spend. Companies like Daikin Applied are pushing HVAC costs down by bringing the power of the Internet of Things (IoT) to equipment management. Their Intelligent Equipment® doesn’t just cut costs—it puts HVAC on autopilot, with automated reporting of energy use and preventative maintenance issues.

The core of this innovation is an IoT gateway and power measurement module installed on Daikin Applied equipment.
This gateway leverages Intel’s industry-leading computing and networking technology to create an information flow that maximizes energy monitoring and analysis, operational
efficiency, and active decision making.

The potential upside for IoT-enabled equipment is huge, but deciding which IoT technology is right for you can be a daunting challenge. This white paper takes a closer look at the
reasons HVAC can be a major cost center, the savings available with Intelligent Equipment, and the 6 factors to consider when selecting IoT-enabled equipment.


Most building owners don’t know how much power their HVAC units are consuming. That’s a problem: An average HVAC unit consumes 1KW of power per ton of cooling, with inefficient older units using more.

Maintenance is also a challenge. On one hand, service calls are expensive and should be kept to a minimum. On the other hand, deferred or overlooked maintenance can result in:

  • Costly emergency service visits
  • Unvalidated work order requests and billings
  • Shortened equipment life
  • Downtime that disrupts your business

The risks are even more significant for chillers, which serve the entire building. Chillers are more expensive to service than rooftop units, so maintaining good running order is critical. Plus, there are fewer chillers on a given site, so uptime is more important.


The bottom line is that you can’t manage what you can’t measure. Building owners have been crippled by their inability to measure HVAC operation in enough detail to manage it efficiently – and thus leverage their sizable investment.

IoT-enabled solutions can turn that situation on its head. The stream of intelligence from these systems can simplify equipment management, keep occupants comfortable, and add to the bottom line all at the same time.

“Sharing and processing equipment performance and status information is accelerating buildings to a new level of intelligence,” says Christine Boles, General Manager of Intel’s Smart Building Solutions. “Daikin’s Intelligent Equipment shows the reality and the benefits of IoT in buildings.”

However, not all IoT solutions actually supply this transformational level of control and efficiency. To identify a solution that will actually deliver on its promises, look for the following characteristics:

For starters, the solution must do more than gather data—it must give building owners actionable intelligence. Daikin Applied’s approach is a good example of how the right solution can turn complicated data into simplified management.

With Intelligent Equipment, building owners can manage and index tenant comfort to the ASHRAE 55-2010 standard while linking directly to ENERGY STAR’s Portfolio Manager
for instantaneous benchmarking performance against similar buildings. They can compare the performance of equipment
before and after completion of work orders.

More benefits accrue to the building owner through more efficient service technicians who can utilize Intelligent Equipment’s remote diagnostics and software updates. If a service call is warranted, technicians already have some diagnostic data and can prepare for the solution with the necessary parts. They also have a simple means to compare equipment performance before and after their work is completed.

The bottom line is the ultimate consideration. Look for solutions that take HVAC out of “run to failure” mode and instead optimize maintenance and energy use. In terms of initial cost, setup should be easy. For example, Daikin Applied uses Intel-based intelligent gateways with built-in cellular connectivity for plug-and-play installation.

In terms of lifecycle costs, the Intelligent Equipment solution reduces service visits and downtime through preventive maintenance alerts. Also, the life of equipment is extended, creating further savings. Finally, energy consumption is reduced by 20% or more.

To manage equipment with minimal time and effort, controls must be easy to understand, with alerts so you know when action is needed.

Consider how this works with Intelligent Equipment: Owners get intuitive cloud dashboards that can be customized to focus on whatever they care about most. The dashboards automatically adapt themselves for smartphones, so you can view status on the go. And proactive alerts ensure that problems don’t go unnoticed.

Because data is stored in the cloud, storage limits are not an issue. Intelligent Equipment maintains all performance records so building owners can spot trends and identify problems. The solution also documents maintenance calls so owners have a full service history at their fingertips.

“Rip and replace” of existing assets is expensive. It’s much better to find IoT solutions that are compatible with installed equipment and existing systems. For example, the Daikin Applied solution supports multiple local networking options for seamless integration with building management systems (BMS) and building automation systems
(BAS). Its cloud interface is similarly interoperable with existing IT systems.

Avoiding equipment replacement is not just a one-time consideration. The best solutions are scalable so building owners can upgrade it over time, and deploy it across their entire portfolio.

Thanks to its on-board Intel processors, Intelligent Equipment has enough on-site power to run future workloads, including life cycle optimization, utility incentives and automated demand response. As more buildings are added to a portfolio, the Intelligent Equipment cloud platform can scale up to provide centralized control, monitoring, and status/condition for all.

Given worldwide cybersecurity threats, no building owner can ignore the possibility of threats related to their building systems. And for good reason. Hackers recently found a back door through the BMS of a large building occupied by Google. In the summer of 2016, investigators from Bat Blue, a cloud security company, simulated a successful
ransomware attack through a smart thermostat.

The Intel technology used by Daikin provides security at the cloud, operating system and boot levels. For example, Intel’s whitelisting technology defends the
IoT gateway against malware tampering and unauthorized software.

The Daikin cloud infrastructure is similarly private and reliable. Building owners can maintain complete control over their data and who has access to it.

While the functionality of Intelligent Equipment may sound much like that of building automation systems (BAS), each is, in fact, very different in terms of its
solution and application.

Because it involves a direct connection to HVAC equipment, the Intelligent Equipment solution knows a unit’s exact maintenance requirements. It also knows the true run times and energy consumption of each unit. In contrast, a BAS can only estimate maintenance needs and usage based on predetermined schedules, and only if someone has programmed the BAS with that information.

Intelligent Equipment works similar to plug-and-play options for personal computing – the individual components of the solution recognize each other and function together as soon as they are connected. Anyone who remembers the earlier days of computing, before plug and play, recalls the effort needed to make different pieces of equipment work together, much like setting up a BAS today.

This difference between BAS and Intelligent Equipment solutions has a direct impact on initial costs. The setup for a BAS requires a technician to map each data point at a cost of roughly $500 each or $10,000 for 20 points. In contrast, the Intelligent Equipment solution provides 150 data points each year for a subscription cost equivalent to the setup for a single point in a BAS. Moreover, due to its hard drive technology, a BAS systems has memory for only 30 to 60 days of operation, while cloud storage offers unlimited memory. 

Despite the difference in core technology, Intelligent Equipment is compatible with any existing BAS, allowing the combination to provide even greater efficiency. An HVAC unit with Intelligent Equipment care share its formidable data array with a BAS via an Ethernet connection while simultaneously streaming its data through the cloud. 



With Intelligent Equipment from Daikin Applied, backed by the power and security of Intel, your HVAC Equipment will pay you a steady stream of dividends by optimizing unit performance, tenant comfort and energy efficiency. Intelligent Equipment is the best way to manage and operate your HVAC equipment.

Whether you are replacing equipment in an existing building or planning a new facility, Daikin Applied can help. Our solutions experts can assist with upgrades and new equipment for all HVAC systems.







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