UPS System Vendors in North America Look for Ways to Penetrate the Government Sector

Business Wire, May 16, 2005

PALO ALTO, Calif. -- With the government adopting commercially accepted best practices in purchasing uninterruptible power supply (UPS) systems, the procurement process has become significantly more complex, posing a strong challenge to UPS system vendors in North America.

New analysis from Frost & Sullivan (http://www.powersupplies.frost.com), North American UPS Markets: Government Sector, reveals that revenue in this market totaled $138.6 million in 2004 and projects to reach $216.9 million in 2011.

If you are interested in a virtual brochure, which provides manufacturers, end-users, and other industry participants an overview of the latest analysis of the North American UPS Markets: Government Sector, then send an e-mail to Trisha Bradley - Corporate Communications at trisha.bradley@frost.com with the following information: your full name, company name, title, telephone number, fax number and e-mail. Upon receipt of the above information, an overview will be sent to you via e-mail.

The new procedures require all vendors to be pre-qualified by government organizations before they can sell their products. Moreover, since the procurement process involves various channels such as prime contractors and the in-house government purchasing entity, General Service Administration (GSA), vendors need to maintain good relationships with these multiple gatekeepers.

"Since this can be a tedious and time-consuming task, vendors are trying to gain wider access to government organizations by forming partnerships with value-added resellers (VARs) that focus on selling solely to the government sector," remark Frost & Sullivan Back-up Power Systems' Program Manager Farah Saeed. "Some others are entering agreements with GSA to cater to this sector directly."

In recent years, due to major e-government initiatives implemented by the government, the use of computers and network equipment across different applications has increased tremendously. Power consumption has shot up and there is a growing need for digital grade power. Vendors can benefit from this, as UPS systems need periodical updates to support a new generation of IT equipment.

However, a high degree of apathy and ignorance about the importance of power protection persists among government organizations. Moreover, due to numerous cost constraints, organizations tend to delay acquisition of UPS systems, as many of them do not perceive this solution as a high-priority product.

"While there is interest in modernizing operations by deploying next-generation IT equipment, government departments are not entirely on board in terms of buying or upgrading related back-up power solutions," notes Saeed. "UPS system manufacturers will have to invest resources and time in overcoming this lack of conviction."

Expanding the value offering by extending post-sales service and other complementary products is anticipated to help increase the appeal of UPS systems for the government sector.

In fact, a well-structured service organization can be a key asset in the government sector given that prime contractors and procurement agencies tend to favor vendors that offer superior service and quick response and repair time.

"This being the case, investments in perfecting service channels and technicians are likely to go a long way in building rapport with key decision makers in government organizations," says Saeed. "This could result in future repeat sales."

North American UPS Markets: Government Sector, part of the Back-up Power subscription, examines the two broad application segments within the government sector of the UPS systems market: IT network applications and mission-critical applications. It provides revenue forecasts by power range and application as well as forecasts on applications and technologies that are likely to impact future demand for UPS systems. Executive summaries and analyst interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com

North American UPS Markets: Government Sector
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Keywords in this release: Uninterruptible power supplies, UPS, vendors, North America, government sector, prime contractors, General Service Administration, GSA, value-added resellers, VARs, e-government initiatives, procurement agencies, research, information, market, trends, technology, service, forecast, market share