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Downtime in Data Centers Encourage Customers to Invest in Extended Backup Power Services - Frost & Sullivan finds that the North American UPS Service Markets earned revenues of $740.4 million in 2005 and estimates this to reach $1.24 billion in 2012.
Downtime in Data Centers Encourage Customers to Invest in Extended Backup Power Services

 

NewswireToday - /newswire/ - Palo Alto, CA, United States, 2006/08/10 - Frost & Sullivan finds that the North American UPS Service Markets earned revenues of $740.4 million in 2005 and estimates this to reach $1.24 billion in 2012..

   
 
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End users are realizing that the presence of lead acid battery technology combined with high power density data centers are putting them in higher risk of downtime. These systems must therefore be constantly monitored and evaluated to ensure maximum uptime. Increasing number of end users are outsourcing maintenance to either uninterruptible power supply (UPS) manufacturers or third party service providers

Frost & Sullivan finds that the North American UPS Service Markets earned revenues of $740.4 million in 2005 and estimates this to reach $1.24 billion in 2012.

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 Service Markets, then send an e-mail to Trisha Bradley, Corporate Communications at trisha.bradley[.]frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. The brochure will be e-mailed to you upon receipt of this information.

“Revenues for services are primarily driven by the number of installed UPS systems. Research indicates that installed base will continue to grow during the forecast period at a CAGR of 10.2 percent between 2005 and 2012,” says Farah Saeed, Program Manager for Frost & Sullivan’s Energy & Power Systems group.

Growth for installed base has been influenced by a fairly long repurchase cycle particularly for 3-phase UPS units in the above $35 k range. There is a strong interest to prolong UPS usage as much as possible through using extended UPS services. Furthermore, datacenter expansions and build outs also contribute to this trend.

Price sensitivity is fairly strong in the UPS market despite lacking substitute products. Furthermore, not all customers are convinced that extended service is an investment worth investing.

“In smaller facilities, particularly in the SMB sector, decisions for purchasing UPS systems and services is delegated to inexperienced MIS managers or even senior management who are not entirely attuned with power quality problems since it is not their core area of expertise,” explains Saeed.

Educating customers on the importance of maintaining uptime through acquiring value added services is important in order to gain revenues.
Many UPS manufacturers resort to producing white papers on the difference of various UPS technologies as well as collaborate with media to educate end users on the benefits of using the various UPS technologies and services.

North American UPS Service Markets is part of the Power Quality and Power Supplies Subscription, which also includes research in the following markets: World UPS Markets, North American Power Distribution Unit (PDU) Markets, World Server Rack and Rack Option Markets, World Transient Voltage Surge Suppressor Markets, and North American UPS Markets –Small and Medium Business Sector. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. 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.

 
 
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Downtime in Data Centers Encourage Customers to Invest in Extended Backup Power Services

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