Backup Power Costs Spike - InformationWeek

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8/25/2006
10:15 AM
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Backup Power Costs Spike

Data center backup systems average 5.5% increases, some as much as 15%.

As energy prices continue to add to the cost of electricity in data centers, backup power systems are becoming more expensive, too.

Emerson Network Power last week said it's raising the price of all its backup power supply hardware and cooling systems, effective immediately. On average, prices for data center backup and cooling systems will increase 5.5%, though certain products could go up as little as 3% or as much as 15%. Software pricing will remain unchanged.

Hardware price hikes stem from increases in the cost of raw materials and components, notably copper, steel, and lead, says Fred Stack, director of marketing at Emerson's Liebert Solutions, a line of data center power and cooling systems sold through channel partners.

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Because the increases apply to list prices, end users are the ones who will bear the cost increases, Stack says. Several rivals also have raised prices, notably Eaton PowerWare, which announced price increases that took effect at the beginning of the year.

Stack doesn't envision the list-price increases having an impact on overall demand. "The market is growing nicely right now, compared to prior years," he says. "It's easier for the market to absorb something like this when it's in a growth mode."

Quotes already given to customers and VARs before last week's increases will remain valid for another 45 days.

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