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Strategic Analysis of APC's InfraStruXure (ISX) Solution in EuropeProduct Type: Market Research ReportPublished by: Frost & Sullivan Published: November 2006 Product Code: R1-5432 Description Research OverviewThis Frost & Sullivan white paper titled Strategic Analysis of APC’s InfraStruXure (ISX) Solution in Europe provides an analysis of APC’s ISX solution and an assessment of its success in Europe. In this research, Frost & Sullivan's expert analysts thoroughly examine the following market for such products: small UPS, medium UPS and large UPS systems. Market Sectors Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
Growing Trend Towards a Single Vendor for all Mission-Critical Needs Increases Demand for ISX Solution APC’s InfraStruXure (ISX) architecture is well positioned to cater to the growing demand from users for a single vendor for all their mission-critical needs. This group mostly comprises enterprise or corporate solutions, mostly through the IT channel. Introduced in 2003, the ISX solution is changing the way end users look at their needs. The solution is offered to network critical physical infrastructure (NCPI), ranging from server rooms to data centres. Since its introduction in 2003, ISX installations have significantly contributed to APC’s top-line growth. With APC’s acquisition by Schneider and the imminent merger with MGE, the ISX solution is expected to achieve excellent market reach in Europe. In the third quarter of 2006, small UPS systems accounted for close to 75 per cent, while large systems contributed to 22 per cent of the total sales revenues. Underpinned by these trends, together, the companies are positioned to emerge as leaders across all UPS segments - small, medium and large. "While several factors are favorable for the success of APC’s InfraStruXure (ISX) solution in the European market, the single biggest driver is the movement among users towards a single vendor that provides a comprehensive solution," notes the analyst of this research service. "Most end users prefer a single vendor for their mission-critical needs, which makes maintenance and services contracts simple and reliable. As a result, the ISX solution is well-positioned to cater to this demand due to its unique offering in the industry." Customised Solutions Key Factor in Growth The ISX solution goes beyond conventional stand-alone backup power systems to provide a customisable solution encompassing racks, cooling and network manager. This is achieved through the APC design tool, which is an online portal that offers customisation based on individual project requirements, either online or through a service professional. Starting from the design portal to the standardised components which are used to customise a solution, the ISX architecture is unique in its offering. Notably, the trend of bundling standard products and services has gained momentum in order to provide a comprehensive solution through mutually beneficial partnerships, while also moving towards developing such solutions in-house. This strategy has been adopted by power protection companies in order to counter the threat from the ISX solution. The initial cost of the ISX solution is higher in comparison to costs involved in installing components from multiple suppliers, thus posing a hindrance to price-conscious customers. "Although the ISX solution offers cost savings on the operational front post-installation, this may still not convince buyers that are faced with a budget constraint during the initial purchase," explains the analyst. "Hence, adopting a consultancy-type sale approach will be useful, where customers are provided with an opportunity to install only what is needed and upgrade subsequently, based on incremental needs." Table of Contents
1. Strategic Analysis of APC's InfraStruXure (ISX) Solution in Europe List of Figures |
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