As more business is conducted electronically – in a range of sectors – the need for uninterruptable power supplies becomes ever more important, which presents opportunities for resellers.
Power is critical to many business functions today, especially with the proliferation of business completed online. So when the power goes down, it can be disastrous
for a business.
It is a relatively common occurrence too. Brian Preston, general manager at CP Automation, points to figures that state globally, more than 350 million people – about 4% of the population – were impacted by a major power outage in 2021 and in the UK alone, power outages last up to 151 minutes on average.
The consequences of a power outage can be severe, and vital services crucial for our daily lives are immediately affected, including communication networks and public transport such as electric trains.
For businesses, power outages can lead to significant economic losses that can hit businesses hard and affect their overall financial stability. “There is the productivity loss,” says Brian. “Factories, offices and commercial establishments heavily rely on electricity to power machinery and enable day-to-day operations. Power outages disrupt production schedules, lead to idle workers, and result in substantial financial losses for businesses.
“Likewise retail stores, restaurants and other consumer-driven businesses suffer when power outages make it impossible to serve customers. With no electricity to keep perishable goods refrigerated or prepare food, inventory is lost and sales decline considerably.
“Power surges or outages can damage computer systems, servers and data centres, potentially causing data loss for businesses. Additionally, restoring power to critical infrastructure can be a time-consuming and expensive process.”
Jason Koffler, CEO and founder of Critical Power Supplies, adds that not having an appropriate uninterruptible power supply (UPS) in place pushes businesses into an unnecessary reactive mode. “Those that invest in UPS technology are in a much better position to manage and prevent issues from power failures,” he says.
“Preventative measures can also ensure that businesses lessen their environmental impact as proper maintenance of backup power systems can contribute to reducing businesses’ environmental impact by extending the lifespan of components like batteries. This helps minimise the volume of waste destined for recycling or landfill disposal.”
Pushing awareness
Resellers play a crucial role in promoting the adoption and installation of appropriate back-up power solutions, Jason says. “It broadens the security portfolio, delivering business continuity and peace of mind to clients,” he says. “Resellers need to engage not only with IT teams but also with estates teams to ensure that the technology is seamlessly integrated into the hardwired infrastructure. Collaborating across the relevant teams will ensure more comprehensive risk mitigation.”
Martin Ryder, channel sales director Northern Europe at Vertiv, adds that the need for UPS is something that resellers should be promoting to their customers. “Because with so much of a business’ operation relying on technology, it is crucial for enterprises to have a reliable, efficient power supply to keep systems running smoothly,” he says. “With downtime costing organisations greatly in monetary and reputational terms, a UPS coupled with the associated battery backup is an essential component of any power management strategy, providing backup power in case of outages or other disruptions.
“Resellers who are supplying any form of critical IT hardware, should see UPS, as well as associated critical infrastructure products such as PDUs, as an opportunity for increased attach rate and additional revenue streams.”
Patrick Fenner, co-founder and head of engineering, DefProc Engineering, adds that a common challenge is businesses not having anyone in charge of power/energy management. “Energy tends to be the fourth largest spend for companies, but it often lacks a dedicated manager,” he says. “This means that they may not fully understand
the need and benefits of their business having a UPS, especially when it comes to lost time and opportunities as a result of a power outage.
“Resellers also need to be pushing awareness of the PSTN switch-off. Despite repeated attempts at publicity, it’s still not well known and will catch people unaware. From a business perspective, the switch-off will increase risk levels around health and safety and measures need to be put in place beforehand.”
Mike Barron, UK managing director, SYNAXON, adds that while businesses are aware of the risks and while a UPS may not be their number one priority, it will usually only take one power outage incident to convince them that it’s a good investment. “Also, while the power supply in most parts of the UK is very reliable, the more frequent extreme weather events that we are now seeing increases the chance that outages will occur, and that’s something customers need to be aware of.
“This is a good area of business for our partners. By using our EGIS e-commerce platform, our partners can identify the right UPS for their customers and easily add products to their quotations. We also work closely with APC, one of the leading suppliers in this market, to ensure our reseller customers have access to their best-selling products through SYNAXON Hub.
“Our UPS product sales over the past year have grown in line with our overall business and we’d expect that to continue. Whenever a reseller is quoting for new systems or infrastructure, it makes sense for them to quote for a suitable UPS as well. Making customers aware of the need to protect power supplies is a responsible thing to do, and from the partner’s perspective, has the added benefit of increasing the value of the sale.
Entering the market
Indeed, with UPS becoming more important to businesses, it is a market that resellers should be looking at. But to get into the market successfully requires knowledge and strong partnering.
“At Vertiv, we understand that different organisations work in different ways, and we pride ourselves on working closely with our partners to help them find the right solution for their customers,” Martin says.
“Resellers should look for partners that are equipped with industry-leading global portfolios of critical infrastructure solutions and simplify what can often be a complex path to navigate. The vendor should have a clear strategy to drive channel growth through investment, industry leading and reliable products, extensive training and easy to implement, practical marketing campaigns. It is beneficial for resellers if partners have many years of experience and an established global footprint, including dedicated customer support. The solutions should also be margin rich, providing channel partners with flexibility.”
But at the core should be good communication and solid partnerships, he adds. “Vendors should equip their partners with what they need to succeed and work to stay in step as their business and the market changes,” he says.
“Choose a vendor that is committed to rewarding partners and consistently and seamlessly share high quality leads. They should treat each other as extensions of their own team and provide a comprehensive list of value propositions including a sophisticated channel dedicated product portfolio, training courses and channel marketing programmes.”
Brian adds that strong application knowledge is a must to ensure reliable UPS sizing and selection in addition to a complete product range for every possible application. “All backed up by knowledgeable support and a responsive maintenance team who can be relied on at short notice if needed,” he says.
UPS as a managed service
With demand for UPS rising, calls for backup power solutions as a managed service is on the rise too, says Jason. “This highlights the critical role these systems play in an organisation’s electrical infrastructure,” he says. “Offering backup power solutions as a managed service allows for regular health checks, professional maintenance, and efficient management, ensuring reliable system performance. This approach benefits end users and resellers by optimising system efficiency and transferring risk responsibility to the appropriate party.”
But Jason cautions that choosing the right partner is essential. “It is important that the relationship between the provider and reseller is based on clarity and transparency,” he says. “Understanding the specific risks that the client is facing, ensuring proper maintenance and avoiding sub-contracting pitfalls are vital for the success of long-term contracts. The partnership needs to deliver against the client’s specific requirements and nurture an ongoing relationship beyond the initial sale.”
Patrick adds that businesses that use UPS on a large scale tend to do their own UPS management. “But if UPS is a new venture/investment for the company, there is going to be a huge opportunity for a third party to step in and take care of their energy security,” he says. “If a reseller can make it clear that they can reduce business costs and increase efficiencies, there will be a demand for the service.”
Future
The UPS market is set for further growth in the coming years. Patrick notes that there will be a focus on UPS that provide more power for longer with less effort and more stability. “Increasing longevity will be another important factor for suppliers that want to pitch their UPS as something they can plug in and forget about,” he says. “If you never have to use it, how do you know it’s going to work when you need it to? To address this, there will need to be increased self-management and self-monitoring for UPS. Another trend I see is smaller UPS dominating the market. With the change PSTN switch-off, people will favour something small that they can drop under their desk to ensure their phone remains functional.”
Martin adds that he has recently seen, and expects to see over the coming year, increasing demand for UPS systems using Lithium-Ion batteries. “The benefits are that customers can maximise power density in a smaller footprint and improve ROI because they have a longer lifespan than traditional valve regulated lead–acid batteries,” he says.
“They also offer strong technical advantages such as a wide operating temperature range and come with an advanced integrated battery management system, which provides an accurate picture of the battery’s health and runtime and protects the battery cells against current, temperature, and over- or under-charging. The BMS continuously adjusts battery charging to make the most out of performance and battery life.”
Jason agrees that the UPS sector is witnessing the emergence of lithium. “While this innovation offers exciting opportunities, it also comes with its own challenges, notably its reliance on a limited resource and its limited recyclability,” he says. “Lithium-based batteries have been available as a power source in the backup power industry for several years, but their widespread adoption in this sector has increased more significantly in recent times. The use of lithium-ion batteries for backup power solutions has become more prevalent due to advancements in battery technology, making them more reliable, efficient and cost-effective compared to traditional lead-acid batteries.
“Clients are increasingly concerned with factors beyond just initial and operational costs, focusing more on long-term considerations such as carbon footprint and recyclability. As a result, many manufacturers and providers now offer backup power solutions that utilise lithium-ion batteries to meet the growing demand for reliable and sustainable power backup options. With the net zero deadline on the horizon, it becomes imperative to integrate UPS solutions into an organisations’ sustainability strategy to ensure alignment with environmental goals.”
Taking all these factors into account, resellers have a real opportunity, says Jason. “Providing back-up power solutions as a managed service, rather than as a one-off purchase, presents them with the ability to build long-term relationships, helps clients mitigate risks, and create profitable partnerships that extend beyond the initial sale.”