I think this, although a lot to look at, will actually perform better, since it is just a bunch of calculations in a single pass through the data.
UPDATE business.dbo.db_schedule
SET nextUpdate=
CASE
WHEN
DATEADD(hh, 8, DATEADD(d, DATEDIFF(
D,nextUpdate,Getdate()), nextUpdate))
> Getdate() THEN
DATEADD(hh, 8, DATEADD(d, DATEDIFF(
D,nextUpdate,Getdate()), nextUpdate))
WHEN
DATEADD(hh, 16, DATEADD(d, DATEDIFF(
D,nextUpdate,Getdate()), nextUpdate))
> Getdate() THEN
DATEADD(hh, 16, DATEADD(d, DATEDIFF(
D,nextUpdate,Getdate()), nextUpdate))
ELSE
DATEADD(d, 1+DATEDIFF(
D,nextUpdate,Getdate()), nextUpdate)
END
where sno=8
Note: the last one is simplified by adding 1 day into the inner expression instead of adding 24 hours at the outer.
Original idea below
The idea expands on the previous one, except that instead of adding just 8 hours, we add all 8, 16 and 24 as 3 separate rows, and use the GROUP BY/MIN to take the one with the earliest time after the current time.
update s
set nextUpdate = a.newTime
from business.dbo.db_schedule s
join
(
select nextupdate, min(nextUpdate2) newTime
from
(
SELECT nextupdate,
nextUpdate2 =
DATEADD(hh, 8*x.y,
DATEADD(d,DATEDIFF(D,
d.nextUpdate,Getdate()),d.nextUpdate))
from business.dbo.db_schedule d
cross join (select 1 union all
select 2 union all
select 3) x(y)
) z
where newTime > getdate()
group by nextupdate
) a on a.nextUpdate = b.nextUpdate;