Japan’s architecture, engineering, and construction (AEC) sectors are experiencing accelerated investments in cloud-based engineering technologies, driven by the expansion of large-scale infrastructure and urban development projects, alongside the imperative to construct smart, sustainable, and resilient buildings.
However, the rising IT overhead, particularly costs linked to scalable cloud infrastructure, complicated licensing models, and the management of increasingly complex software environments, can quickly escalate. Without effective license management and cloud cost optimization, these technological assets risk becoming substantial financial liabilities, undermining their intended benefits.
Cloud-Based Engineering Apps Adoption on Overdrive
The recent surge in cloud-based BIM and CAD software adoption in Japan is likely to drive greater utilization of solutions offered by market leaders such as Autodesk, Tekla, Bentley Systems, and Hexagon. This trend reflects the industry’s increasing focus on faster project execution, enhanced accuracy, and a shift toward digital-first construction workflows.
This transition is becoming increasingly vital as the industry tackles large-scale infrastructure and urban development projects, such as the Tokyo Outer Ring Road Expansion, Nishinomiya Central Sports Park Redevelopment, and Kashima Offshore Wind Farm. In these complex endeavors, precision, speed, and seamless collaboration are crucial to meeting the high demands of modern construction and ensuring project success.
Japan’s AEC industry, once slow to adopt new technologies, is now turning to cloud-based engineering applications to stay competitive and succeed in an evolving and challenging market.
Challenges Hindering Cloud Value Realization
Integrating cloud-based engineering tools comes at a significant cost for many Japanese AEC firms. Managing the financial overhead that comes with adopting these technologies often makes the investment less attractive without proper optimization.
Cloud Upfront Costs and Scalability
In many organizations, especially those that are slower to adopt new technologies, 85% of existing core IT applications predate the cloud era and lack cloud-native design. This challenge is particularly evident in AEC companies, which often face two costly options: either modify their legacy software to accommodate cloud environments or replace it entirely with modern cloud-based tools—both of which can place significant strain on financial resources.
Moreover, the uncontrolled consumption of cloud assets post-migration adds further financial burden. Gartner reports that organizations typically spend 70% more than their initial cloud budget, amplifying the challenge of managing cloud infrastructure effectively and efficiently.
Complex Licensing Frameworks
AEC organizations typically utilize software from a diverse range of vendors, each presenting its own unique licensing terms, pricing structures, and renewal schedules. This diversity complicates the coordination and management of these contracts, leading to significant administrative burdens.
Many software licenses are acquired based on anticipated peak usage, yet actual usage can fluctuate dramatically over time. This volatility creates challenges in striking a balance between over-purchasing—resulting in unnecessary costs to accommodate peak demand—and under-purchasing, which could disrupt operations and impede project delivery.
Additionally, licensing regulations may vary significantly across different countries, particularly in highly regulated industries such as healthcare or finance. For AEC firms operating on a global scale, ensuring compliance with local licensing laws introduces yet another layer of complexity.
Shortage of Skilled IT Professionals
According to a report by the Ministry of Economy, Trade, and Industry (METI), Japan is projected to face a shortfall of nearly 450,000 IT professionals by 2030. This shortage is acutely felt in industries that require advanced technical skills, like the architecture and construction sector, where cloud-based technologies such as BIM and CAD are becoming central to operations. The lack of qualified IT professionals will likely drive the demand of SAM managed services in the country as well.
Optimize Cloud-Based Engineering Licenses with Open iT
Open iT redefines license management for Japan’s AEC industry by transforming cloud-based engineering tools like BIM and CAD into valuable, cost-efficient assets. As cloud-driven solutions become critical to Japan’s expanding construction projects, effectively managing these resources is essential to maximizing ROI.
Granular Visibility and Real-Time Monitoring
In-depth visibility into license usage across cloud-based platforms provides real-time data to ensure efficient utilization. Granular insights enable firms to identify idle or underused licenses, reducing waste and optimizing license allocation. By tracking usage patterns, companies can make data-driven adjustments, avoiding over-provisioning and ensuring effective resource management.
Comprehensive Reports and Visualizations
Detailed reports and visual analytics streamline decision-making, offering actionable insights into software consumption. These tools allow precise forecasting of resource needs, accurate license allocation, and optimized budgeting. Balancing license procurement with actual demand reduces unnecessary spending while ensuring organizations are fully prepared to meet operational requirements.
Improved License Access for AEC Professionals
Timely access to licenses reduces delays caused by unavailable software, boosting productivity. Engineers can seamlessly access the tools they need, enhancing collaboration and project timelines. This eliminates bottlenecks, improves workflow, and ensures that projects remain on schedule, driving overall organizational growth.
Ensuring Compliance with Industry Standards
Compliance monitoring capabilities ensure adherence to licensing laws and vendor agreements, preventing costly violations. This safeguards organizations from financial and legal risks, particularly in highly regulated industries, helping maintain compliance with industry standards and regulations.
A Cloud Revolution in Japan’s AEC Sector
While traditionally slow to adopt transformative technologies like cloud computing, Japan’s architecture, engineering, and construction (AEC) industry is now rapidly embracing these innovations. As cloud-based engineering solutions become integral to the AEC landscape, it is imperative that firms leverage tools designed to maximize their return on investment, optimize resource utilization, and drive sustainable growth in an increasingly competitive environment.
Archi Future 2024: Accelerating Japan’s AEC Digital Transformation
Archi Future 2024 convenes Japan’s architecture, engineering, and construction (AEC) leaders to examine the impact of cloud computing, digitalization, and emerging technologies on the industry’s evolving landscape. Open iT will be participating in this key industry event.
Join us at TFT Hall in Tokyo Ariake on October 24, 2024, for in-depth discussions on how cloud-driven technologies and other innovative solutions are driving growth and enabling firms to adapt to the demands of the digital era.
