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Ukraine Network, Server Cabinets Market Report
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Ukraine Network, Server Cabinets Market Report

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You may find detailed information regarding Ukraine rack cabinets market including, general IT market, projects, system integrators, brands, market shares, market volume and general trends

You may find detailed information regarding Ukraine rack cabinets market including, general IT market, projects, system integrators, brands, market shares, market volume and general trends

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    Ukraine Network, Server Cabinets Market Report Ukraine Network, Server Cabinets Market Report Document Transcript

    • 2011 Ozan Can Koseley[UKRAINE MARKET OVERWIEV FOR RACK CABINETS]
    • 2General IT Market Overview in Ukraine AA clear distinction between the “pre-crisis” and “post-crisis” development of the IT marketin Ukraine has to be made. “Pre-crisis” IT market had a 30-40% annual growth rate and a demandwhich exceeded supply. The global economic crisis hit Ukraine hard and suspended the IT marketboom. At the end of 2008 sales have started falling, with businesses postponing or delaying mostexisting and planned IT projects. Still, even the largest companies in Ukraine are strongly underinvested in terms of IT, andthis represents a significant potential, at least in the middle term. Another potential is the EURO2012 championship, which Ukraine will host. Essential IT investments are required for it, and this willinfluence market development. Sector consolidation is also expected, where smaller vendors willmerge or become regional service centers of the bigger players. IT market in Ukraine was worth around 2.7 billion USD in 2008. Hardware segmentmaintained over 80% of total market size. Number of IT providers of national reach does not exceed100. PC penetration in Ukraine increased to almost 20%. The total IT market in Ukraine can be segmented into Software, Hardware, Services, andCommunication. Although the software and IT service segments are smaller in size, foreigncompanies entering the market are raising the growth level of these two segments. Having a lowpenetration rate, the hardware market in the country is still dominated by PC and Notebook sales.The communication market, though larger in size, is experiencing a slow down due to marketsaturation, which is expected to be overcome by the introduction of new technologies.Computer Software and Services Market Trends & Prospects In 2008, software and services share in the total $ 2.7 billion Ukrainian IT market was 8% &7% respectively. Approximately 80% of the market belonged to international vendors – Microsoft,Oracle, and SAP – and the remainder belonged to local software developers targeting the localmarket. Currently the Ukrainian IT market is consolidating as major local players merge withinternational companies looking to expand their local presence. Software development becomes aviable business opportunity in smaller regional centers and is no longer limited to a few large cities. Localization was another trend on the market – major software vendors have presentedproducts in Ukrainian. This will not contribute greatly to their corporate sales but is very important tosupplying the public sector, academic institutions and the retail industry. This trend is solid evidenceof the growing interest by global software leaders in Ukraine.Major prospects include: Ozan Can Köseley | Confidential
    • 3 Corporate IT system optimization and upgrade projects Unified access to multiple information silos Sharing and analysis across formats and repositories Server and data storage virtualization Cost control or modifications of corporate information systems To be successfully implemented under current economic conditions, IT projects should befocused on resolving specific business problems, be fully operational in a short period of time, havehigh and transparent return on investments (ROI) and entail low risk. These changes represent bigchallenges and opportunities for vendors active on the Ukrainian IT market. Almost all Ukrainian ITvendors developed anti-crisis packages for their clients at the end of 2008. Also, they started to offernew distribution models, like SaaS (software as a service), leasing and even trial piloting. The mostoptimistic market performance is expected for suppliers of solutions for corporate informationsystems and IT consultants. Infrastructure audits, network engineering, information lifecyclemanagement, implementation, virtualization, and support of IT systems were among the mostpopular services.Hardware Market Trends & Prospects One of the important characteristics of the Ukrainian IT market is the high share of hardwarein sales structure - 86% of IT spending in 2008. IT suppliers mainly serve the demand for newcomputers and implementation of IT infrastructure development projects for companies fromindustrial, retail, financial and telecommunications sectors.Computers & Peripherals Till 2008 more than 60% of PCs in Ukraine were bought in retail, creating significantdomination of households’ purchases in the market structure. PC penetration per 100 inhabitantsreached 19.7 units. Sales estimates for 2009 show a decline of 45% (compared to 2008) in thesegments of desktop and laptop PCs. Some PC retailers have started to develop additional services,like “computer first aid” and support services, to balance sales. The recession, intense competition in the market, and increasing interest in virtualization &server consolidation has affected the Ukrainian server hardware industry, resulting in a sharpdecrease in sales in 2009 - 66% for X86 servers and 44% for RISC/EPIC servers. However, driven bythe demand of energy efficient servers and the need to replace or upgrade systems, the market willrecover. A major trend in IT hardware sector is hardware rationalization allowing to lower energycosts, and maintenance and support charges.Electronic Components Several leading international electronic component manufacturers such as Jabil Circuit Inc.,Yadzaki, Flextronic and Tyco Electronics have initiated major manufacturing projects in Ukraine.When implemented at full scale, these projects will turn Ukraine into one of the leading suppliers ofelectronic components to the European Union electronic industry. Ozan Can Köseley | Confidential
    • 4Communication Technologies Trends & Prospects The Ukrainian telecom industry has shown stable growth for the past years, particularly inmobile wireless and data transfer. At the beginning of 2009, the market reached a degree ofmaturity. In the next few years, demand for telephony services is not going to grow as rapidly asbefore, and is expected even to decline as a result of the economic crisis. Mobile wireless services are the largest segment (62.1%) of telecom industry in Ukraine. Datatransfer services is the fastest growing segment (41% of growth in 2009, despite current economicsituation). In 2009 OJSC Ukrtelecom expanded the broadband access network and installed over 80thousands ADSL2+ gateways. Major prospects in communications sector in Ukraine include 3Gmobile networks development and 3G internet access services.Mobile Telecommunications GSM network of mobile operators cover most of the national territory, and mobile telephonyis available to the mass market. Average spending on the service varies between $8 and $12 permonth. Five Ukrainian GSM operators – MTS Ukraine, Kyivstar GSM (majority shareholder: Telenor),Astelit (majority shareholder: Turkcell, trade mark: Life), Golden Telecom GSM, and Ukrainian RadioSystems (majority shareholder: Vympelcom, trade mark: Beeline) service 55.5 million customeraccounts (total Ukraine’s population is 47 million). Two leading operators MTS Ukraine and KyivstarGSM service around 80% of the customers with other operators lagging far behind. The economic crisis, with its expected reduction in consumer spending on telephony and thedevaluation of national currency, hit Ukrainian telecom companies. Average revenue per user (ARPU)and average price for minute (APPM) have reduced. On a positive note for operators, there is significant unsatisfied demand for broadband. TheInternet Service Providers (ISP) market has, therefore, become attractive to mobile telephonyproviders. They are investing in 3G internet access services. The interest on the part of largetelecommunications operators in the ISP market will change the market landscape.Internet The ISP market in Ukraine has a completely different structure from those of fixed-line ormobile telephony. The market is fragmented, and the state -controlled telecom company,UkrTelecom, is a monopoly which controls the backbone and most of the last mile infrastructure.Local ISPs are weak and have little chance of competing with telecom monopoly. However, there are indications that the ISP market might be able to change, with telephonyproviders moving to the ISP market: the launch of 3G mobile network and consolidation of theindustry. 3G is last mile technology, and mobile telephony providers rent backbone data transmissionchannels from state telecom monopoly. This is a bottleneck of the 3G operators’ business modelwhich is focused on the development of the mass market. With a shortage of internet gatewaycapacity and the high cost of line rental, mobile operators could be able to build their own gateways Ozan Can Köseley | Confidential
    • 5and become completely independent. In contrast to local ISPs they have enough funding and politicalpower to do this and will obviously become strong players on the ISP markets, competing with theestablished providers. Unsatisfied demand for an affordable high speed access service represents an opportunityfor further business growth. The appearance of mobile and fixed-line telephony operators on the ISPmarket could bring investment, reduce prices and also change the market landscape. In the firstquarter of 2009 Internet penetration rate reached 25.7% and the broadband penetration rate was3.8%. Geographic distribution of Internet users is uneven with Kiev, the capital, accounting for over60%. Despite the global economic downturn, the number of household broadband connectionscontinues to grow.Introduction to Cabinet Market According to information from Ukrtelecom that we received, the standards are considerablysame as Russia for IT rack cabinets, outdoor cabinets. That’s why, we believe that Canovate’s Russiaexperiences are convincing for Ukraine market as well. Moreover according to information that we acquired from Ukrtelecom, wide range of IT andoutdoor racks used, some of them are from local vendors and patented in Ukraine. The popularbrands that have been used in Ukrtelecom;- Tyco- R&M- Emerson- APC and- Shroff Again, as Ukrtelecom declared, they are used for different purposes but really few of themwere for outdoor applications, because they mentioned that there is a high risk of stealing theequipments. They often use outdoor cases for Ukrtelecom base stations mostly. Based on the results of sales and customers requests, it can be acquired that most runningoutdoor products are 19-inch outdoor telecommunication cabinets 600 mm wide with a depth of 600and 800 mm and a height of 32-33, 42 and 45 U. Sizes of cabinets are usually used in middle-class standard: height from 18 to 47 units (floor), theratio of width / depth is usually 600 / 800 mm 600/800/900 mm. Although a number ofmanufacturers in this group also offers server model with a depth of 1000-1200 mm.Local Producers Ozan Can Köseley | Confidential
    • 6Almost all Ukrainian producers and distributors of foreign brands have in their range of these sizes.There are several variants of standard sizes (specific brand): 2.3 in width (total possible 5); 2.4 in depth (total - 10), the "Carbon" - 6; 4.8 in height (total - 29), the "Carbon" - 9. The existence of a broad range of companies is possible only with an established productionand a complete portfolio. The highest price the demand is observed in the middle price group. Forexample, the "Carbon" brought to market a telecommunications closet premium Cobalt, all of whoseelements are made of stainless steel. The share of Ukrainian products on the market is expected to 30%. The main advantage ofdomestic cabinets still is cost, but this trend is changing due to increased competition, the productquality is approaching international standards, but an assortment of accessories is not too extensive. Also note that Ukrainian producers have already found their followers, who know theirproduct range and capabilities. Almost all domestic companies have already moved away fromcopying the Western versions of products on the market and represent a lot of their owndevelopment.Market Shares 2002-2008 Ozan Can Köseley | Confidential
    • 7 Ukraine Cabinets Market Share 2002 ZT-Net Others 18% 34% Rittal 17% AESP Atrack 10% 7% SME 4% Triton 5% Conteg 5% Ukraine Cabinets Market Share 2004 Karbon Others AESP 5% SME 13% 19% 5% Triton 5% Rittal 19% Conteg Schroff 9% ZT-Net Riant 6% 10% 9% Ozan Can Köseley | Confidential
    • 8 Ukraine Cabinets Market Share 2006 APC Riant Estap 1% Others Conteg 2% 4% 12% 19% Rittal 4% Exalan 13% ZT-Net Triton 9% 8% Atrack AESP 12% Schroff 8% 9% Ukraine Cabinets Market Share 2008 Exalan 4% Others Master Group 9% Conteg 6% 33% Schroff 8% Estap 9% APC Rittal AESP 12% 9% 10%* The proposed diagrams are related with SCS market, but trends in this segment probably be extrapolated tothe entire market. As we see, for some brands of two intervals resembles something like a seesaw - up anddown. Curiously, for example, to trace the castling TM ZT-Net and Conteg, for seven years becamethe leader of an outsider, and vice versa. What are you doing it today? Ozan Can Köseley | Confidential
    • 9 It separates from others already very significant. Small importance here and the activity ofthe vendor is that made a serious bid to the CIS market. It is well known, for example, that in 2010opened in Moscow of Conteg, the next most likely, Ukraine. In the face of fierce price competition, when the price often becomes the deciding factor,Conteg brought to market a budget wardrobe iSEVEN in 2009. Prototype it became a popular line ofROF. According to the manufacturer, though the new series in no way inferior to its predecessor, itcosts considerably less. The difference in price reduces the cost of production short-range in height(leaving only the most popular height - 21, 27, 42 and 45 U), simplification and the variability of thedoor and changes the type of packaging. It was developed as a flagship series ROF. In particular, thecapacity was increased in different models of 500 and 700 kg.Market Shares 2010 A few figures on the ratio between the cabinet and SCS projects in 2010: one projectaccounts 0.83 floor unit and 0.43 wall unit (1,26 cabinet for the project) . The overall structure of the distribution market for the wiring closet SCS in 2010 is shownin figure ( Fig. 1.1 ). In the first place remains a Czech company Conteg (27,7%). Its market sharecompared to the year 2009 remained unchanged. Cabinets APC by Schneider Electric (11,2%) movedinto third place in 2009 to second in 2010. The share of cabinet Belarusian manufacturer IEC hasincreased from 5,5% to 10,0%, which enabled these products to take the third position. Also increased the proportion Schroff (from 6,2 to 9,9%). Level Master Group declinedslightly - from 15.3% in 2009 to 9,7% in 2010. As a result, the company moved from second place tofifth. Strengthened its position in the market of the Czech cabinet Triton (7,1%). Turkish productEstap (6,8%). Recall that the factories that belong to the manufacturer Legrand.Ukrainian cabinet manufacturer - company "Euroformat" - is currently 4.1% of the market (in 2009,its share was 7.6%). Shown is one domestic manufacturer of cabinets - the company TECO (2,4%). Change in market share may be a seasonal phenomenon associated with many factors totake into account that the investigation is practically impossible. But the popularity index (rating) ismore dependable. It characterizes the number of companies, installers (expressed as a percentage)used in their product or that brand ( Fig. 1.2 ). The graph shows that the first three places, as in 2009,took Conteg , Master Group , and Schroff . High rating speaks primarily about the reliability of thesupplier. Ozan Can Köseley | Confidential
    • 10Figure 1.1 Net-Connect Ukraine Cabinets Market Share 2010 Euroformat 2% Teko Others 4% 2% 4% Rittal Conteg 6% 28% Estap 7% APC Triton Master Group 11% 7% 10% Schroff Exalan 10% 10%Figure 1.2 Popularity/Rating Index 2010 Conteg Master Group Schroff Euroformat APC Estap Exalan Rittal Triton TEKO ZT-Net Net-Connect 54,80% 38,10% 28,60% 26,20% 23,80% 21,40% 19% 19% 14,30% 11,90% 7,10% 7,10% Ozan Can Köseley | Confidential
    • 11 In fourth place in the ranking were suddenly cabinets "Evroformat. A year ago, on this indicator they were in eighth place. And the market share of these cabinets is not as high. It is obvious that in 2010 was quite a high demand for these products, as, indeed, there were sales. But take a greater share of the market (currently in ninth place in the distribution), the manufacturer prevented some circumstances, possibly related to the reorganization of production. The fifth highest rating (both in 2009) - APC by Schneider Electric, the sixth was Estap. Cedmoe and eighth places with the same figures hold of IEC and Rittal. A good result at the "novice" rating - the company Triton (in 2009 this producer participation in the ranking are not accepted). Another "new company" - the Ukrainian manufacturer metallokonstruktivov, TECO - also first came into popularity rating cabinets. Completing the list of brands ZT-Net and Next- Connect, the first of which - just a frequent visitor here, while the second appeared the first time. Other manufacturers of cabinets, and their generally considerable number have popularity is lower than the manufacturers presented in ( Fig. 1.2 ). As shown by results of a survey in 2010, occupied in quantitative terms, 65,6% of the market. Wall Cabinets - 34,4%. If we consider the relationship between these two groups of constructs in monetary terms, the difference is even greater. Thus, floor cabinets occupy 94,5% of the market, Wall - 5,5%. Proceeding from this market structure, floor cabinets differs little from the overall distribution. That is the market share held by producers as a whole cabinets and floor cabinets in particular, are virtually identical (the error is only due to share hinged constructs). But the market for wall cabinets lives their lives. First of all, wall solutions are quite popular in small SCS. This means that there may be differences in consumer segments. On ( Fig. 1.3 ). shows the structure of the market hinged wiring closet 2010.The first place confidently takes Conteg (26,0%). On the second left the company TECO (13,3%). This is quite unexpected and at the same time pleasing result of the recognition of domestic brand in the market SCS. Third place at the mural production IEC (10,1%). Master Group occupies the fourth position with a share of 8,9%. At the fifth - Czech cabinet Triton (8,0%). This is followed Estap (6,7%). Two domestic manufacturers (UHL-Mash "and" Evroformat ") occupy the proportion of 6,2 and 5,0%. The above picture of the market may not seem relevant realities of today. After all, the general conviction wall cabinets are quite popular on the market, they can freely buy, even in online stores (though, like outdoor). But it is needed to mention that the study is conducted for a SCS segment and take into account only the cabinets, which installers used in its cable projects. Ozan Can Köseley | Confidential
    • 12Figure 1.3 Ukraine Wall Cabinets Market Share 2010 Schroff Rittal ZT-Net Others 3% 2% 2% Euroformat 5% 5% Conteg Uhl-Mash 27% 7% Estap 7% Triton TEKO 8% Master 14% Group Exalan 9% 11% Popularity rating wall cabinets ( Fig. 1.4 ) is headed Conteg - more than half the companiesinstallers use equipment of this manufacturer in their ow n projects in 2010. Next come the MasterGroup, IEC, Estap, «Evroformat», Triton. Wall cabinets TECO w ho came in second place in the mar ketin terms of supply, have a low rating, being in popularity only in eighth place.Figure 1.4 Popularity/Rating Index Wall Cabinet 2010 Conteg Master Group Exalan Estap Euroformat Triton Schroff TEKO Rittal ZT-Net APC Atrack Uhl-Mash Next Connect 52,60% 26,30% 21,10% 18,40% 13,20%13,20% 10,50%10,50% 7,90% 7,90% 5,30% 5,30% 5,30% 5,30% Ozan Can Köseley | Confidential
    • 13 With regard to Open Racks ( Fig. 1.5 ) it is typical for this segment of thumb ratio -0.24 rackat one draft SCS (or 24 racks of 100 projects). Leader in this segment - the company Conteg(30,3%). In second place - stands IEC (22,4%). Third place goes to Equipment Master Group(11,0%). Rack Sensor domestic producer "Sensor Technology" took fourth place with a share of10,5%. Further successive positions occupied by "Evroformat",Pandut , ZN - Net , Karbon , Schroff .Figure 1.5 Ukraine Open Racks Market Share 2010 Others Schroff Rittal ZT-Net 2% 2% Euroformat 5% 3% 5% Conteg Uhl-Mash 27% 7% Estap 7% Triton TEKO 8% 14% Master Group Exalan 9% 11% The first three delirium in the popularity rating of open racks ( Fig. 1.6 ) repeats the structureof the market - Conteg , IEC, Master Group . Followed by machinery "Evroformat», ZN-Net, Estap,Triton, Net-Connect. In the popularity contest and no Sensor Panduit - probably, they occupy certainmarket share due to separate successful projects of its members. Ozan Can Köseley | Confidential
    • 14Figure 1.6 Popularity/Rating Index Open Racks2010 Conteg Exalan Master Group Euroformat ZT-Net Estap Triton Next-Connect 38,50% 26,90% 19,20% 15,40% 15,40% 11,50% 11,50% 7,70%The Foreign Brands that have sales and distributors in Ukraine Confeg Panduit Schroff Tycho R&M Emerson APC Rittal Estap Knurr Zpas Triton MasterGroup Legrand Exalan Ozan Can Köseley | Confidential
    • 15The Local producers in Ukraine In order to understand market deeply, it is considered that Ukraine local brands have productsthat meets with market needs and customer demands, that’s why we added their catalogues asbelow Euroformat As below, you can see the catalog of products Website: www.euroformat.com Euroformat-TELEKO M.pdf MKM Servis Website: http://www.mkm.ua/ Frunze Website: http://www.frunze.ua/brands.html TVD Website: http://www.tvd.com.ua/ Teco Website: http://www.teco.com.ua/ Karbon Website: http://www.karbon.kiev.ua Wago Website : http://vago.ua/ Uhl-Mash Website : http://www.uhl-mash.com.ua/System Integrators in Ukraine Priocom Website : http://www.priocom.ua/en/home PrioCom_eng_web.p df Lvs Service Website : http://www.lvs.net.ua/ Ozan Can Köseley | Confidential
    • 16 Netline Website: http://www.netline.ua/ http://ukrcomline.com.ua http://ukr-com.net/ http://flexitech.com.ua/ http://4lan.com.ua/1U/price_catalog.html http://en.incom.ua/ http://www.lanit-iv.com/ http://merstan.com.ua/ http://www.intelsys.com.ua/ http://www.svitscs.com/ http://www.it.sitronics.com http://www.pronet.ua/ http://www.yadres.com/pages/1/171/1211- А ПТ Днепр http://www.romsat.kiev.ua/en http://www.invex-telecom.ua/ http://www.sonet.kiev.ua/ http://www.citynet.ua http://www.fcbm-ua.com/ Lastly, as it stands out, having datacenter cooling solutions ensure a significant advantage in order to sell cabinet products. Ozan Can Köseley | Confidential