Backup Power To Cost Data Centers More

Price increases for hardware are being called necessary because of increases in the cost of raw materials and components, notably copper, steel and lead.

August 21, 2006

1 Min Read
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As energy prices continue to add to the cost of providing electricity to data centers, now it's becoming more expensive for systems that generate backup power as well.

Emerson Network Power today said it is 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 percent, though certain products could go up as little as 3 percent or as high as 15 percent. Software pricing will remain unchanged.

The price increases for hardware were necessary because of increases in the cost of raw materials and components, notably copper, steel and led, says Fred Stack, director of marketing of Emerson's Liebert Solutions line of data center power and cooling systems. It's the first time Emerson has raised the price of backup and cooling solutions sold through channel partners, Stack says.

Because the increases apply to list pricing, end user customers are the ones who will bare the cost increases, Stack says.

"It's the end user that's going to see this, not the reseller," he says.Several rivals have already 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," Stack says. "I think 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 prior to today will remain valid for another 45 days. Stack says the increases won't affect other channel promotions or market-development fund offerings.

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