The Top UPS Vendors and How & Why They’re Chosen

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VDC Research Webcast: The Top UPS Vendors and How & Why They’re Chosen Industrial Automation & Control Practice David A. B. Laing Senior Analyst Tim Shea Senior Analyst Christopher Rezendes Executive Vice President Perspectives on Manufacturers for the UPS Market

description

During this webcast, David Laing, Program Manager/Senior Analyst, VDC Research – Industrial Automation and Control Practice, presented selected end-user and channel data from our April and May 2010 UPS surveys. Specifically, he discussed: the who’s who of UPS manufacturers as cited by the UPS reseller community; the top-rated UPS suppliers in selected markets based on our 2008 report and a 2010 update; the top 10 vendor selection criteria for UPS manufacturers by end-users; the product service and support elements most/least valued by end-users; and the implications of these findings for UPS suppliers.

Transcript of The Top UPS Vendors and How & Why They’re Chosen

Page 1: The Top UPS Vendors and How & Why They’re Chosen

VDC Research Webcast:

The Top UPS Vendors and How &

Why They’re Chosen

Industrial Automation & Control Practice

David A. B. Laing – Senior Analyst

Tim Shea – Senior Analyst

Christopher Rezendes – Executive Vice President

Perspectives on Manufacturers for the UPS Market

Page 2: The Top UPS Vendors and How & Why They’re Chosen

Recording Available

These slides are from a webcast presented on 8/26/10.

A full audio recording is available at:

https://vdcresearch.webex.com/vdcresearch/lsr.php?AT=pb&SP=EC&rID=

2649847&rKey=22857eb89d682a89

1 – 2010 VDC Research Group, Inc.

Industrial Automation & Control Practice

Page 3: The Top UPS Vendors and How & Why They’re Chosen

VDC Research Group

Complimentary marketing data on the

Industrial Automation & Control Markets

is available on our website at:

www.vdcresearch.com

2 – 2010 VDC Research Group, Inc.

Industrial Automation & Control Practice

Page 4: The Top UPS Vendors and How & Why They’re Chosen

Today’s Speaker

• VDC Research Group

Founded in 1971, continuous, profitable operation for nearly 40 years

Focus on a number of embedded and niche network market segments

1,000 clients annually …90% technology suppliers, tech investors

• David A. B. Laing, PMP – Senior Analyst / Program Manager

Has over 30 years of experience in the Semiconductor - Automatic Test Equipment industry

working at Teradyne Inc. in many different field and factory based positions

Is a graduate of Babson College (MBA) and Wentworth Institute of Technology

(BS – Electronics Engineering Technology)

Is a certified Project Management Professional from the Project Management Institute

Is the author of 5 recently published VDC reports on position sensing and power protection

products

3 – 2010 VDC Research Group, Inc.

Industrial Automation & Control Practice

Page 5: The Top UPS Vendors and How & Why They’re Chosen

Agenda

Introduction

Key Vendor Selection Criteria

Key Product Service and Support Elements

Selected Ratings and Trends of UPS Supplies – End User Perspective

The Re-seller / Channel Perspective of UPS Suppliers

Summary Analysis and Implications

Closing Remarks

Q & A

4 – 2010 VDC Research Group, Inc.

Industrial Automation & Control Practice

Page 6: The Top UPS Vendors and How & Why They’re Chosen

Requirements Are Changing, Leaders Might Be Too

• Enterprise UPS users are exhibiting several key changes in supplier selection

criteria as compared to 2007

• And many of these priorities are in sharp contrast to the burgeoning consumer /

SOHO users who have a different profile for their supplier selection criteria

• These differences are carried across into service and support requirements and

priorities as well

• As the power protection market grows in new installation environments and

smaller account tiers, the channel continues to play a critical role in developing

and supporting these markets – and the channel’s vendor and product selection,

and service priorities must be reconciled

• As market conditions have changed, market requirements and priorities have

shifted … so, too has the perception, position and direction of many power

protection suppliers

Enterprise and consumer markets offer myriad opportunities to gain share, or lose

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Industrial Automation & Control Practice

Page 7: The Top UPS Vendors and How & Why They’re Chosen

Supplier Selection Criteria – Enterprise Users

3.71

3.72

3.77

3.78

3.97

4.05

4.12

4.12

4.17

4.22

3.0 3.5 4.0 4.5

Specification sheets/Product literature

Technical support & training

Field Service and repair

Connected equipment guarantee

Delivery/Availability

Past experience with manufacturer

Warranty coverage

Customer service

Price/Value

Reputation for quality/reliability

Top 10 UPS Supplier Selection Criteria - Enterprise

• Business users are buying UPS because

they don’t want to risk downtime – hence

the emphasis on quality / reliability

• In the recession, it is likely that low

product inventories throughout the

product channels made delivery times

a significant issue

• As budgets tightened, longer term

relationships and first hand vendor

experience became more important

• Connected equipment guarantees are less

important as they mostly refer to the

hardware costs as opposed to the hard to

quantify, but much greater business cost

Different times, different priorities … note some slight changes in enterprise user priorities

(7)

(9)

(5)

(6)

(13)

Note: Bracketed numbers represent 2007 survey results for organizations with greater than 5 employees.

These are shown when there has been 2 place or over movement

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Industrial Automation & Control Practice

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Supplier Selection Criteria – Consumer Users

3.46

3.50

3.54

3.67

3.75

3.77

3.77

3.92

4.07

4.08

3.0 3.5 4.0 4.5

Technical support and training

Brand name recognition

Recommended by others

Past experience with manufacturer

Customer service

Specification sheets/Product literature

Reputation for quality/reliability

Connected equipment guarantee

Warranty coverage

Price/Value

Top 10 UPS Supplier Selection Criteria - Consumer

• Consumers generally buy smaller UPS

where there are often multiple in-store or

on-line product options for each type of

offering

• Consumer users are more likely to be first

time buyers of these units – based on the

moderate penetration levels in the static

market, and the churn in new business

starts and closes

• Consumers look for price first and are less

likely to pay a premium for a brand name –

in large part as they have limited

understanding of the technology or

suppliers

• The assurances provided by warrantees

and guarantees are more valued by

consumers as compared to business

users because the hardware cost is very

significant to them

Beyond the importance of price, the consumer market has very different priorities from enterprise

7 – 2010 VDC Research Group, Inc.

Industrial Automation & Control Practice

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Supplier Selection -- Service/ Support Criteria

3.22

3.39

3.45

3.49

3.52

3.55

3.60

3.76

3.83

3.99

3.0 3.5 4.0

Lenient return policies

Installation, Integration

Preventative maintenance checks

Battery disposal

Monitoring software

One-day on-site service

24/7/365 technical on-site assistance

Telephone/Email/website technical assistance

Spare parts availability

Battery replacement

Top 10 UPS Supplier Support Criteria – Business (End Users)

As expected, the end users view of support differs from the channel community

3.15

3.15

3.15

3.19

3.22

3.31

3.31

3.44

3.52

3.58

3.0 3.5 4.0

Monitoring software

Site inspection and needs evaluation

One-day on-site service

Preventative maintenance checks

Training programs

Spare parts availability

Installation, Integration

Battery replacement

24/7/365 technical on-site assistance

Telephone/Email/website technical assistance

Top 10 UPS Supplier Support Criteria - Channel

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Industrial Automation & Control Practice

Page 10: The Top UPS Vendors and How & Why They’re Chosen

Do Channel & Enterprise User Requirements Overlap?

• Channel and Enterprise share several service and support requirements with only a slight

shift in priorities:

Battery replacement services (#1 for enterprise, #3 for channel)

Advanced monitoring features enhanced performance for users, supply chain

efficiency for supplier and channel

Availability of spare parts

Immediate technical assistance

• With channels, getting the UPS integrated and operating correctly as quickly as

possible is a key to end customer satisfaction and overall business efficiency

and success, and therefore the emphasis on early life product support criteria

such as:

Site inspection

Installation support

Training programs

• The end users of UPS products have emphasis on long term total cost of

ownership support criteria such as:

Battery disposal

Lenient return policies

There are some core offerings and approaches that suppliers might consider to support both groups

9 – 2010 VDC Research Group, Inc.

Industrial Automation & Control Practice

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Supplier Rankings – Americas

Mitsubishi

Toshiba

Eaton (MGE, Powerware)

Emerson (Liebert)

APC

2007 Estimated Americas Revenue

Brand recognition is likely a driver of ratings and purchases of Americas market UPS products

3.75

3.77

3.77

3.79

4.13

3.5 4.0 4.5

Belkin

Emerson (Liebert)

Eaton (MGE, Powerware)

Toshiba

APC

Rating of Product and Service Performance

Emerson (Liebert)

Eaton (MGE, Powerware)

Tripp Lite

Belkin

APC

Cited as Having Purchased From

2008 Report 2010 Report – Demand Side Survey

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Industrial Automation & Control Practice

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Supplier Rankings – APAC

Eaton

Phoenixtec

Mitsubishi

Emerson (Liebert)

APC

2007 Estimated APAC Revenue

Although purchase history and 2007 revenues conflict, a preference for strong Japanese brands is seen

3.96

3.97

3.98

4.19

4.20

3.5 4.0 4.5

APC

Belkin

GE Digital Power

Toshiba

Mitsubishi

Rating of Product and Service Performance

Mitsubishi

GE Digital Power

Toshiba

Belkin

APC

Cited as Having Purchased From

2008 Report 2010 Report – Demand Side Survey

11 – 2010 VDC Research Group, Inc.

Industrial Automation & Control Practice

Page 13: The Top UPS Vendors and How & Why They’re Chosen

Supplier Rankings – Mid Size (10kVA – 100kVA)

UPS Users

Chloride

Mitsubishi

Eaton

Emerson (Liebert)

APC

2007 Mid Size Revenue Estimates

The preference and cited purchases could be leading indicators of market share changes

3.79

3.80

3.85

3.98

4.06

3.5 4.0 4.5

Emerson (Liebert)

Eaton (MGE, Powerware)

Toshiba

Mitsubishi

APC

Rating of Product and Service Performance

Mitsubishi

GE Digital Power

Eaton (MGE, Powerware)

Emerson (Liebert)

APC

Cited as Having Purchased From

2008 Report 2010 Report – Demand Side Survey

12 – 2010 VDC Research Group, Inc.

Industrial Automation & Control Practice

Page 14: The Top UPS Vendors and How & Why They’re Chosen

Supplier Rankings – Greater Than 100kVA UPS Users

Piller

Mitsubishi

Eaton

APC

Emerson (Liebert)

2007 Estimated APAC Revenue

The preference for Toshiba and Ametek are notable as they were not in the Top 10 for 2007 sales

3.94

3.96

4.07

4.10

4.21

3.5 4.0 4.5

Ametek

Emerson (Liebert)

Mitsubishi

APC

Toshiba

Rating of Product and Service Performance

Toshiba

Emerson (Liebert)

Mitsubishi

GE Digital Power

APC

Cited as Having Purchased From

2008 Report 2010 Report – Demand Side Survey

13 – 2010 VDC Research Group, Inc.

Industrial Automation & Control Practice

Page 15: The Top UPS Vendors and How & Why They’re Chosen

Supplier Rankings – Channel

Mitsubishi

Riello

Eaton

Emerson (Liebert)

APC

2007 Estimated APAC Revenue

The Reseller Community of OEMs, SIs, Retailers and Distributors had differing preferences from end users

3.73

3.83

3.88

4.00

4.13

3.5 4.0 4.5

GE Digital Power

Emerson (Liebert)

Ametek

Eaton (MGE, Powerware)

Mitsubishi

Rating of Product and Service Performance

GE Digital Power

Mitsubishi

Eaton (MGE, Powerware)

Emerson (Liebert)

APC

Cited as Having Purchased From

2008 Report 2010 Report – Demand Side Survey

14 – 2010 VDC Research Group, Inc.

Industrial Automation & Control Practice

Page 16: The Top UPS Vendors and How & Why They’re Chosen

Key Factors to Consider

• Analysis of the pre and post recession product and vendor selection criteria

show significant shifts

• Although there is significant overlap, the priorities and needs for service and

support differ along the product value chain

• The suppliers that continued investments in larger and more efficient UPS

products are likely to win business for new highly consolidated data centers or

for replacement units as deferred spending is reversed

• The suppliers that were too aggressive in cost cutting and / or business terms

and activities during the downturn may have lost their luster among end users

and particularly the channel community

The reports will dive deep for clients, but here are a couple of things to consider

15 – 2010 VDC Research Group, Inc.

Industrial Automation & Control Practice

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VDC Coverage Priorities

• UPS Supplier View of the UPS Market for 2010 and beyond

• UPS usage trends in key applications and vertical markets

• Updated supplier rankings and competitive analysis

• Mergers and Acquisitions – current impact and future trends

• What are the key UPS product attributes that are driving UPS market

recovery / growth

• What are the key company/product strategies being deployed by the

top UPS suppliers

Among many things, the VDC study will explore the following topics

16 – 2010 VDC Research Group, Inc.

Industrial Automation & Control Practice

Page 18: The Top UPS Vendors and How & Why They’re Chosen

VDC Coverage Scope: The Power Protection Service

STUDY PUBLICATION DATEACTUAL MARKET SIZE/SUPPLIER

SHAREFORECAST MARKET SIZE

Service Year 2010 2009 2010-2014

Track 1: User Requirements and Channel Analysis

Volume 1: UPS

Volume 2: Power Line Surge Suppressors

Track 2: Supply Side Analysis

Volume 1: UPS Under 20kVA – Americas

Volume 2: UPS Under 20kVA – EMEA

Volume 3: UPS Under 20kVA – APAC

Volume 4: UPS 20.1 kVA and over – Americas

Volume 5: UPS 20.1 kVA and over – EMEA

Volume 6: UPS 20.1 kVA and over – APAC

Volume 7: Power Line Surge Suppressors – Americas

Volume 8: Power Line Surge Suppressors – EMEA

Volume 9: Power Line Surge Suppressors – APAC

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Industrial Automation & Control Practice

Page 19: The Top UPS Vendors and How & Why They’re Chosen

Q&A Session

Thank You for Attending this VDC Webcast

For more information about VDC Research coverage of the global markets for

Power Protection Products, or the recently published Position Sensor or Touch

Screen Sensors Reports, please contact:

Christopher Rezendes – Executive Vice President

[email protected] | 508.653.9000 x120

David Laing – Senior Analyst / Program Manager

[email protected] | 508.653.9000 x146

Tim Shea – Senior Analyst

[email protected] | 508.653.9000 x132

Bob Perugini – Account Executive

[email protected] | 508.653.9000 x144

18 – 2010 VDC Research Group, Inc.

Industrial Automation & Control Practice