Assessing corporate space needs pays off for Planon - Silicon Valley / San Jose Business Journal:

http://www.iavias.com/2008/04/amd-phenom-x4-9850-phenom-fixed-but-not-phenomenal/
Planon Inc.’s Web-based software enablews large companies to manage their realestate portfolios, determining how much spacs a company really needs and calculatinhg the real estate savings of creating more mobil e workforces that allow consolidation of properties or As companies focus on cost-cutting acrosxs balance sheets, Planon executives say reducing property and plantr costs becomes paramount. “If you look at a company’s balancw sheet, the second biggest expense can be plantand equipment,” said Jim Nauen, senior vice president of sales and marketing. “It’s a savings to companies that actuallhy does notcut payroll.
” Through modeling with Planon’s software, a company can develop flexible space for those remote It also identifies space unuser by divisions that may have downsized or consolidated. By optimizingb the space it has, a company can eliminate the need to build new space or prompt divestment ofunused “Giving upper management a clear view of space acrosa their entire portfolio leads to some surprisin g conclusions,” Nauen said. The cost savingsd to property owners is translating into revenuew growth forthe company. Last year, it grew totall sales nearly 20 percentto $41.8 millionb with software sales making up 50 percent of U.S.
The balance of sales were of consulting serviceszand support, which the Braintree offic e performs. Nauen said the compant is profitable. Analysts say companies competingh inthis sector, known as integratesd workplace management systems, are poised to benefity from softness in the commerciao real estate market. “Whenever we’re in a situatio where there’s a fair amount of turmoipl in highlyfixed assets, the management of those componentds becomes very important,” said Jack vice president of research at Stamford, Conn.-based Founded 25 yearx ago by CEO Pierre Guelen in the Planon established its U.S. headquarters in Braintree threweyears ago.
The companu has about 15 employees locallyu and expects to grow head count by five to seveb employees by the end of the Nauen said. The company’s strategy has been to use its platforj to allow companies to manag various aspects of a real estat eportfolio — not just space management, but project developmenrt management, maintenance schedules, and, most an application to manage sustainability initiatives. While the company has customersw acrossthe globe, Planon expects North Americah companies, specifically ones with more than 1,0009 employees, to fuel short-term growth. It already counts , and regionapl bank BB&T Corp.
as Heine said these companies are ones that most need specifiv software to managereal estate. “If you have mayb four or five offices, then you mighg be able to manage it ona spreadsheet,” Heine “When you start to talk about larged office complexes, it requires a special The market for certainm aspects of real estate management, specifically financial asseyt management, is dominated by large technology companiex such as SAP AG and Planon’s software competes with dozens of other smalk vendors to provide space management software to companieas and property managers.