Backup Power Solutions On Demand: Frost & Sullivan

by CXOtoday Staff    Jun 09, 2006

Frost & Sullivan revealed that compliance with regulatory standards are amongst the key components that would drive demand for backup power solutions as organizations are forced to advance existing IT networks for ensuring better tracking systems and improving accountability.

Back up power should be deployed to ensure uptime of networks as well as protecting these against damages caused by power abnormalities. The adoption of next generation blade server technology as well as transition to IP telephony is expected to put strain on power infrastructure and overall datacenter environment. Both power and heat density per square foot is expected to accelerate.

Frost & Sullivan finds the World UPS market to have earned revenues of $5.76 billion in 2005, which translates to 7% growth year on year. The market is estimated to reach $8.55 billion in 2012.

“The number one reason for investing in UPS systems is to protect digital equipment and process against the damages from power abnormalities. In fact, an end user survey identifies protection against power outage to be the second biggest concern for the most medium sized organizations,” said Farah Saeed, Program Manager, Back-up Power Solutions sector, Frost & Sullivan’s Energy & Power Systems group.

The findings also state a lack of awareness hindering end-users from upgrading their equipment. Typically, end-users take UPS systems for granted and are unaware of risks associated with sudden battery failure or non-availability. In some markets, UPS is considered a generic product, which requires low involvement in terms of determining brand or specific features. The purchase would be based entirely on price and not on advanced features such battery management, automatic shutdown, scalability, etc.

Many UPS manufacturers resort to producing white papers on differences between various UPS technologies as well as collaborating with media to educate end users on benefits of using UPS technologies.

“Frost & Sullivan end user survey reveals that many businesses are underestimating its power requirements and therefore under deploy UPS systems. Similarly, many end users still deploy the inexpensive standby UPS systems despite its shortcomings,” explained Saeed.