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
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
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
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 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
5 – 2010 VDC Research Group, Inc.
Industrial Automation & Control Practice
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
6 – 2010 VDC Research Group, Inc.
Industrial Automation & Control Practice
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
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
8 – 2010 VDC Research Group, Inc.
Industrial Automation & Control Practice
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
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
10 – 2010 VDC Research Group, Inc.
Industrial Automation & Control Practice
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
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
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
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
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
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
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
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
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