CyberPower Sees Huge Upside To GenAI

“So, just with the advent of generative AI, there is a massive demand for computing power. That means a lot of servers and all the hardware that needs to support those computer brains,” CyberPower vice president of marketing Tim Madsen tells CRN.

The demand for generative AI solutions inside GPU-driven data centers’ larger power requirements is feeding into excitement over the technology, said Tim Madsen, vice president of marketing at UPS provider CyberPower.

“So, just with the advent of generative AI, there is a massive demand for computing power. That means a lot of servers and all the hardware that needs to support those computer brains,” Madsen told CRN during an interview at XChange 2023. “And we’re seeing that in the data center.”

UPS customers also want a greater ability to manage and customize their backup power deployments, said Pete Miesen, senior director of sales with CyberPower, the Shakopee, Minn.-based winner of a five-star rating in CRN’s Partner Program Guide for 2022 and 2023.

“We’ve got a line of three new units coming out,” Miesen told CRN. “They have a cloud port on them that lets you monitor these UPS systems through your cellphone, through a web browser. You can receive notifications if there are any issues, like if the site loses power, or there’s a power fluctuation.”

Miesen said CyberPower is doubling down on partners by offering 12 to 18 percent margins on deals.

“We can just about guarantee those margins and one way we do that is through MAP pricing. Whether you are a mom and pop shop selling or Amazon the have to adhere to our MAP policy . So we have a MAP policy and then we have a discount structure for our resellers that allows them to to sell that unit at the same price as Amazon, because we all know that Amazon is very competitive.”

Madsen said the feedback from partners has been very positive.

Here is an edited transcript of the interview.

What’s the biggest top line news for CyberPower right now?

Madsen: We’ve got a promotion running now through the end of September and it’s kind of perfect timing with all the storms upon us. We’re calling it our downpour of deals promotion where we’ve got four of our best-selling UPS systems all on special. These are all perfect for small business and light networking applications.

We’ve mapped out how these different UPS systems might fit both into home and home office, and we’re really seeing great success especially with our CP1500AVRLCD3, that’s one of our always one of our top sellers.

You were talking about cloud management capabilities. Can you tell me about that?

Pete Miesen: We’ve got a line of three new units coming out. They have a cloud port on them that lets you monitor these UPS systems through your cellphone, through a web browser. You can receive notifications, if there are any issues, like if the site loses power, or there’s a power fluctuation.

With these unites, you do get visibility, but you get limited management. We do have a full management solution as well but this is a lower cost option. In terms of visibility, you can separate all the units either by geography or by customer and get the notifications if there is an issue.

Now with our full management, it can tie into the clients SNMP management system, if they have one or we’ve got software that comes with the units that allows you to manage and monitor the UPS as well a little bit more expensive solution, but it gives you a little added depth into the management.

On GenAI, everybody talks about, you know, the GPU stacks are bigger. They require more more kilowatts to run, so especially in the data center, I just imagine this is a great opportunity for you folks?

Madsen: So, just with the advent of AI, there is a massive demand for computing power. That means a lot of servers and all the hardware that needs to support those computer brains, if you will. And we’re seeing that. In the data center, specifically, we have the our new three phase UPS systems that launched last year and we’re actually CRN’s Product of the Year in the power management category in 2022.”

We’ve seen nothing but success with the models that we’ve launched here in North America. So that’s been fantastic. And we see that demand continuing. We’ve already eclipsed all of 2022 sales in three phase during 2023. So we’re definitely we can affirm that.

When it comes to those larger three phase systems and larger accounts, do you move those through some mix of the channel and direct?

Miesen: One thing about our three phase, we are the only manufacturer out there who sells 100 percent through the channel. Because of the complexity of these units most of our competitors are selling them direct. What we have done is put together a team which can work directly with the resellers who may not be familiar with them, may not have delt with them before. It can help them, help their customers put together the right solution. And we’re on site when they turn it on to make sure it all works.

Where is the opportunity there for partners around profitability and margin?

Madsen: Our business model is ensuring profitable partnerships for our channel. So on the deals that we typically do, they’re making 12 to 18 points of margin on the products and UPS systems. That’s a big point of ours. Like Pete said we don’t sell direct. We don’t plan on selling direct. Therefore we need to make sure we are creating very profitable relationships with our VARs and resellers.

What’s been the feedback from partners that you’ve been getting?

Madsen: Feedback was fantastic. We’ve had dozens of partners already applied and become part of the channel partner alliance, which is our award winning partner program. We’ve been recognized the past five years with CRN, regarding our partner program, so it was fantastic. We’re talking to a lot of partners who are currently selling our competitors who are looking for another option or looking to switch.