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

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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 ...

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.

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

  • VDC Research Webcast: The Top UPS Vendors and How & Why They’re Chosen Perspectives on Manufacturers for the UPS Market Industrial Automation & Control Practice David A. B. Laing – Senior Analyst Tim Shea – Senior Analyst Christopher Rezendes – Executive Vice President
  • 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
  • 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 View slide
  • 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 View slide
  • 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
  • Requirements Are Changing, Leaders Might Be Too Enterprise and consumer markets offer myriad opportunities to gain share, or lose • 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 5– 2010 VDC Research Group, Inc. Industrial Automation & Control Practice
  • Supplier Selection Criteria – Enterprise Users Different times, different priorities … note some slight changes in enterprise user priorities Top 10 UPS Supplier • Business users are buying UPS because Selection Criteria - Enterprise they don’t want to risk downtime – hence Reputation for quality/reliability 4.22 the emphasis on quality / reliability Price/Value 4.17 • In the recession, it is likely that low product inventories throughout the Customer service 4.12 product channels made delivery times a significant issue Warranty coverage 4.12 • As budgets tightened, longer term Past experience with manufacturer 4.05 (7) relationships and first hand vendor (9) experience became more important Delivery/Availability 3.97 • Connected equipment guarantees are less Connected equipment guarantee 3.78 (5) important as they mostly refer to the Field Service and repair 3.77 (6) hardware costs as opposed to the hard to quantify, but much greater business cost Technical support & training 3.72 Specification sheets/Product literature 3.71 (13) 3.0 3.5 4.0 4.5 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 6– 2010 VDC Research Group, Inc. Industrial Automation & Control Practice
  • Supplier Selection Criteria – Consumer Users Beyond the importance of price, the consumer market has very different priorities from enterprise Top 10 UPS Supplier • Consumers generally buy smaller UPS Selection Criteria - Consumer where there are often multiple in-store or Price/Value 4.08 on-line product options for each type of offering Warranty coverage 4.07 • Consumer users are more likely to be first Connected equipment guarantee 3.92 time buyers of these units – based on the moderate penetration levels in the static Reputation for quality/reliability 3.77 market, and the churn in new business Specification sheets/Product literature 3.77 starts and closes Customer service 3.75 • Consumers look for price first and are less likely to pay a premium for a brand name – Past experience with manufacturer 3.67 in large part as they have limited understanding of the technology or Recommended by others 3.54 suppliers Brand name recognition 3.50 • The assurances provided by warrantees and guarantees are more valued by Technical support and training 3.46 consumers as compared to business 3.0 3.5 4.0 4.5 users because the hardware cost is very significant to them 7– 2010 VDC Research Group, Inc. Industrial Automation & Control Practice
  • Supplier Selection -- Service/ Support Criteria As expected, the end users view of support differs from the channel community Top 10 UPS Supplier Top 10 UPS Supplier Support Criteria – Business (End Users) Support Criteria - Channel Battery replacement 3.99 Telephone/Email/website technical assistance 3.58 Spare parts availability 3.83 24/7/365 technical on-site assistance 3.52 Telephone/Email/website technical assistance 3.76 Battery replacement 3.44 24/7/365 technical on-site assistance 3.60 Installation, Integration 3.31 One-day on-site service 3.55 Spare parts availability 3.31 Monitoring software 3.52 Training programs 3.22 Battery disposal 3.49 Preventative maintenance checks 3.19 Preventative maintenance checks 3.45 One-day on-site service 3.15 Installation, Integration 3.39 Site inspection and needs evaluation 3.15 Lenient return policies 3.22 Monitoring software 3.15 3.0 3.5 4.0 3.0 3.5 4.0 8– 2010 VDC Research Group, Inc. Industrial Automation & Control Practice
  • Do Channel & Enterprise User Requirements Overlap? There are some core offerings and approaches that suppliers might consider to support both groups • 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 9– 2010 VDC Research Group, Inc. Industrial Automation & Control Practice
  • Supplier Rankings – Americas Brand recognition is likely a driver of ratings and purchases of Americas market UPS products 2008 Report 2010 Report – Demand Side Survey Rating of Product and Service Cited as Having Purchased From 2007 Estimated Americas Revenue Performance APC APC 4.13 APC Toshiba 3.79 Emerson (Liebert) Belkin Eaton (MGE, Eaton (MGE, 3.77 Powerware) Tripp Lite Powerware) Emerson (Liebert) 3.77 Eaton (MGE, Toshiba Powerware) Belkin 3.75 Emerson Mitsubishi (Liebert) 3.5 4.0 4.5 10 – 2010 VDC Research Group, Inc. Industrial Automation & Control Practice
  • Supplier Rankings – APAC Although purchase history and 2007 revenues conflict, a preference for strong Japanese brands is seen 2008 Report 2010 Report – Demand Side Survey Rating of Product and Service Cited as Having Purchased From 2007 Estimated APAC Revenue Performance APC Mitsubishi 4.20 APC Toshiba 4.19 Emerson (Liebert) Belkin GE Digital Power 3.98 Mitsubishi Toshiba Belkin 3.97 GE Digital Phoenixtec Power APC 3.96 Eaton Mitsubishi 3.5 4.0 4.5 11 – 2010 VDC Research Group, Inc. Industrial Automation & Control Practice
  • Supplier Rankings – Mid Size (10kVA – 100kVA) UPS Users The preference and cited purchases could be leading indicators of market share changes 2008 Report 2010 Report – Demand Side Survey Rating of Product and Service Cited as Having Purchased From 2007 Mid Size Revenue Estimates Performance APC APC 4.06 APC Mitsubishi 3.98 Emerson Emerson (Liebert) (Liebert) Toshiba 3.85 Eaton (MGE, Eaton Powerware) Eaton (MGE, 3.80 Powerware) GE Digital Mitsubishi Power Emerson (Liebert) 3.79 Chloride Mitsubishi 3.5 4.0 4.5 12 – 2010 VDC Research Group, Inc. Industrial Automation & Control Practice
  • Supplier Rankings – Greater Than 100kVA UPS Users The preference for Toshiba and Ametek are notable as they were not in the Top 10 for 2007 sales 2008 Report 2010 Report – Demand Side Survey Rating of Product and Service Cited as Having Purchased From 2007 Estimated APAC Revenue Performance Emerson (Liebert) Toshiba 4.21 APC APC 4.10 GE Digital APC Power Mitsubishi 4.07 Eaton Mitsubishi Emerson (Liebert) 3.96 Emerson Mitsubishi (Liebert) Ametek 3.94 Piller Toshiba 3.5 4.0 4.5 13 – 2010 VDC Research Group, Inc. Industrial Automation & Control Practice
  • Supplier Rankings – Channel The Reseller Community of OEMs, SIs, Retailers and Distributors had differing preferences from end users 2008 Report 2010 Report – Demand Side Survey Rating of Product and Service Cited as Having Purchased From 2007 Estimated APAC Revenue Performance APC Mitsubishi 4.13 APC Eaton (MGE, 4.00 Emerson Emerson (Liebert) Powerware) (Liebert) Ametek 3.88 Eaton (MGE, Eaton Powerware) Emerson (Liebert) 3.83 Riello Mitsubishi GE Digital Power 3.73 GE Digital Mitsubishi Power 3.5 4.0 4.5 14 – 2010 VDC Research Group, Inc. Industrial Automation & Control Practice
  • Key Factors to Consider The reports will dive deep for clients, but here are a couple of things 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 15 – 2010 VDC Research Group, Inc. Industrial Automation & Control Practice
  • VDC Coverage Priorities Among many things, the VDC study will explore the following topics • 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 16 – 2010 VDC Research Group, Inc. Industrial Automation & Control Practice
  • VDC Coverage Scope: The Power Protection Service 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 ACTUAL MARKET SIZE/SUPPLIER STUDY PUBLICATION DATE FORECAST MARKET SIZE SHARE Service Year 2010 2009 2010-2014 17 – 2010 VDC Research Group, Inc. Industrial Automation & Control Practice
  • 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 cjr@vdcresearch.com | 508.653.9000 x120 David Laing – Senior Analyst / Program Manager dlaing@vdcresearch.com | 508.653.9000 x146 Tim Shea – Senior Analyst tims@vdcresearch.com | 508.653.9000 x132 Bob Perugini – Account Executive bperugini@vdcresearch.com | 508.653.9000 x144 18 – 2010 VDC Research Group, Inc. Industrial Automation & Control Practice