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Greater Deployment of IT Equipment Promises Opportunities for UPS Vendors in the SMB Sector - New analysis from Frost & Sullivan, North American UPS Markets: SMB Sector, reveals that revenues in this market totaled $628.9 million in 2004 and can reach $976.3 million in 2011.
Greater Deployment of IT Equipment Promises Opportunities for UPS Vendors in the SMB Sector

 

NewswireToday - /newswire/ - Palo Alto, CA, United States, 2005/10/07 - New analysis from Frost & Sullivan, North American UPS Markets: SMB Sector, reveals that revenues in this market totaled $628.9 million in 2004 and can reach $976.3 million in 2011..

   
 
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After four years of conservative IT budgets, small and medium businesses (SMBs) realize the need for accelerated investments in equipment upgrade. The Frost & Sullivan SMB end-user survey reveals that 62.0 percent of medium business foresee an increase in their investment in IT equipment in the next three years. With the survey further establishing a direct link between IT investments and investments in uninterruptible power source (UPS) systems, the uptake of these systems in the SMB sector is likely to see a healthy growth.

New analysis from Frost & Sullivan (powersupplies.frost.com), North American UPS Markets: SMB Sector, reveals that revenues in this market totaled $628.9 million in 2004 and can reach $976.3 million in 2011.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants an overview of the latest analysis of the North American UPS Markets: SMB Sector, then send an e-mail to Trisha Bradley, Corporate Communications, at trisha.bradley[...]frost.com, with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

As improvements in efficiency, production, and profitability draw priority, SMBs advance heir communication infrastructure and digitizing operations. Consequently, older versions of personal computers (PCs) replace small and medium organizations and there is an increase in deployment and server network technologies.

“Increased storage needs along with the need for Web services and better security functions are driving investments in servers,” explains Frost & Sullivan Program Manager for Backup Power Solutions Farah Saeed. “Research indicates that 50.0 percent of SMBs will be using VoIP by 2008 and the adoption of voice over Internet Protocol (VoIP), wireless local area network (WLAN), and blade server technologies is driving the modernization of UPS systems by replacing older systems for scalable and modular units.”

Despite these positive trends, the market still suffers from end-user apathy toward power protection. Many end users still have insufficient power protection and there is considerable use of standby UPS technology.

Also, the survey reveals that 52.0 percent of medium-sized businesses and 39.0 percent of small businesses have their "need assessment for UPS systems" undertaken by IT managers and that their limited knowledge of power quality issues often leads to delayed or inaccurate purchases.

While improving awareness levels among IT managers in these organizations can help minimize these concerns, some vendors address this problem by the development of software tools and training sales people on assessing end-user needs, thereby making purchases less technical.

Further, few vendors have developed Web portals or UPS selectors that let end users configure and select UPS products based on their prevailing requirements. In such solutions, all customers have to do is insert their preferences such as total application load, operational voltage, application type, and runtime needs and the portal presents an appropriate solution based on these inputs.

The SMB sector accounts for approximately 30 percent of the total North American UPS market and selling through the right distribution channels is critical for gaining market presence. While a majority of the UPS sales occurs through distributors and retailers, aligning with original equipment manufacturers (OEMs) that supply computers, servers, and other network peripherals could provide a decisive competitive advantage.

“Protection against power outages ranks as the second biggest concern among medium-sized organizations and growing dependency on uptime as well as concerns about productivity loss have led to a positive growth trend for UPS systems in the SMB sector”, says Saeed. “Key competitive factors for UPS vendors include the ability to provide value-oriented solutions, offer prompt technical support and services, use the right distribution networks, and sell reputable products,”

The North American UPS Markets: Small Medium Business (SMB) Sector is a part of the Power Quality Subscription and provides an overview and outlook for the markets while offering detailed market opportunities and industry trends evaluated following extensive interviews with market participants. This study aims to offer a comprehensive look at the markets and also provide analysis across the demand and supply functions. Analyst interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

North American UPS Markets: SMB Sector
A983

Keywords in this release: uninterruptible power source, UPS, small and medium businesses, SMB, original equipment manufacturers, OEMs, research, information, market, trends, technology, service, forecast, market share

 
 
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Greater Deployment of IT Equipment Promises Opportunities for UPS Vendors in the SMB Sector

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Publisher Contact: Trisha Bradley 
210.247.3870 trisha.bradley[.]frost.com
 
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