The channel's perception is that, in the pantheon of sexy IT, uninterruptible power supplies (UPS) come dead last behind keyboards and cabling. But what too many IT resellers overlook is that UPS is a strategic solution, not a peripheral one.
Resellers will typically focus on a small set of core IT specialisms to avoid the risk of diluting their skills and value. But when salespeople come across a customer need for something adjacent to those specialisms, this can create a catch-22 situation. Invest time and effort serving that need and dilution will inevitably occur. Pass it over and someone else will take advantage of your revenue and margin opportunity.
Hence the "is it strategic or not?" question. If the customer wants 20 new monitors, then probably not. If they need a new UPS, it could represent a significant shift in IT transformation.
What’s more, UPS also represents a lucrative market opportunity for IT resellers. According to research from Data Bridge Market Research, the UPS industry will be worth $10.4 billion by the end of this decade - compared to $6.4 billion in 2022.
IT resellers can clearly make a lot of money by offering UPS to their customers. And ultimately, if you’re an IT reseller and don’t currently sell UPS, you risk customers flocking to your competitors.
UPS: The strategic benefits
For businesses looking to purchase and install a UPS solution, it’s often a strategic decision. The main benefit is that it provides businesses with a backup power source so that their operations aren’t hindered in the event of power grid failure, according to Maria Opre, a cyber security expert and senior analyst at resource discovery platform EarthWeb.
“That prevents costly downtime and potential data losses that could really hurt. Plus, the UPS acts like a surge protector, which keeps voltage spikes from frying your expensive equipment. Getting that kind of resilience and peace of mind is a major strategic win in my book,” she says.
Gurvan Meyer, enterprise business analyst at UK-based analyst firm CONTEXT, adds that data loss mitigation during power cuts is made possible as UPS offers “a temporary power source during outages” and facilitates “a graceful shutdown of computer systems”, protecting data in the process.
Another strategic benefit of UPS systems is their ability to help businesses protect expensive and crucial IT equipment. Meyer explains that a UPS solution will enable businesses to extend the lifespan of their IT equipment by shielding them from “power surges, spikes, and other electrical disturbances”.
UPS systems are also a business continuity investment, capable of “minimizing downtime, ensuring continuous operations, and preventing financial losses associated with disruptions”, Meyer argues.
UPS: The role of renewables
As sustainability has moved to the top of the global corporate agenda, the IT channel - like other industries - has come under increasing pressure to meet net zero targets over the coming years.
With renewables playing a greater role in modern UPS systems, this technology can help businesses lessen the environmental impact of their IT resources by using clean backup power.
“When it comes to the strategic benefits of UPS, reducing environmental impact and supporting communities are key factors for any responsible business,” says Rinkesh Kukreja, founder of sustainability website Conserve Energy Future. “By ensuring reliable power, companies can feel confident operating without disruption, while integrating renewable energy helps lower emissions and costs.”
One way to keep UPS systems sustainable is by using solar power, which Opre says works by offsetting grid power with energy from the sun during the day time. In turn, this can increase the lifespan of batteries, she explains.
“That's good for the environment and your bottom line. With both solar and batteries in the mix, you can keep humming along even if the grid croaks completely,” she says. “And with modern batteries lasting up to 20 years, integrating solar and UPS can pay dividends for the long haul.”
While the increased use of solar-powered UPS is great for the environment, it might not be good news for IT resellers interested in selling such systems. Meyer says this trend could negatively affect future UPS sales because home and remote office users will “need less UPS if they have batteries attached to their solar installations”.
UPS: Overcoming limitations
The mediocre lifespan of enterprise-scale batteries was a major flaw of traditional UPS systems. Opre highlights that legacy lead acid batteries would expire after three or five years of usage, and replacing them was costly. However, with newer UPS systems now utilizing lithium-ion batteries, it’s possible to have a UPS with lifespans ten times that of legacy systems. “Proper maintenance and testing help eke out every bit of life from them too,” explains Opre. “The total cost just isn't nearly as high anymore.”
Despite the longer lifespan offered by lithium-ion batteries, Shen Wang - principal analyst of data center power and cooling systems at analyst firm Omdia - points out that they can be more expensive than older types of batteries.
“In addition to safety performance, charging and discharging efficiency, another major factor affecting the penetration rate of lithium batteries is that the unit price of lithium batteries is still higher than that of lead-acid batteries, although electric vehicles are currently being popularized and the unit price of lithium batteries is already very low,” says Wang.
Other hurdles associated with UPS systems centre around communication, carbon accounting and partnerships, according to Kukreja. He explains: “Effective reporting and verification of sustainability goals are table stakes now.”
However, he said the upshot of these systems is that their batteries have “advanced markedly” over the past ten years, explaining that “some utility-scale versions now last over 20 years while maintaining 80% capacity”.
Overall, UPS systems are an important strategic investment for modern businesses, ensuring their systems and operations run smoothly during a power outage. This makes them a great product for IT resellers to offer alongside standard peripherals, and as a result, they can increase their competitive advantage and tap into a lucrative area of IT in huge demand.
