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Equinix Inc. of
Foster City, Calif., lives by Murphy's
Law: If anything can go wrong, it
will. Because Equinix's data centers
and Internet-access exchanges serve
companies like International Business
Machines Corp. and Yahoo! Inc., it
must ensure that its Internet infrastructure
works even when the power fails.
So when the New
York area lost power Thursday, Equinix's
centers in Secaucus, N.J., and Newark,
N.J., were prepared, said Margie Backaus,
chief business officer at Equinix.
The company's complex system of uninterruptible
power supply, or UPS, systems, backup
batteries, power-transfer switches
and other electrical equipment protected
the centers and allowed continuous
operations despite the outage. Aided
by its own generators, "We had
zero interruptions," Backaus
said. "Absolutely none."
Backaus credits this seamless operation
to equipment built by Emerson, the
Ferguson-based manufacturer of control
systems, electronics and electrical
products. The Emerson Network Power
division offers UPS systems, power-transfer
switches, power-distribution and -switching
systems, battery systems, generator
alternators and other equipment needed
to protect computer and telecommunications
networks and to provide backup power.
An Emerson UPS system helped provide
backup power for the New York Stock
Exchange, allowing its computers to
run without disruption.
Now Emerson may
see greater opportunities after last
week's massive outage left millions
of people without power and many businesses
paralyzed. Indeed, the outage has
eroded confidence in the country's
aging power system, and as a result
companies will start re-examining
their power needs, analysts said.
"It's a wake-up call for many
people," said Farah Saeed, a
power-industry analyst at consulting
firm Frost & Sullivan, based in
New York. "A lot of people take
power for granted." Emerson isn't
expecting a big spike in demand, because
of the complicated and expensive nature
of such systems, said Robert Bauer,
president of Emerson Network Power
Systems-North America. "The type
of system that you're talking about
is not the type that you plan for
in a week's time," Bauer said.
"You really have to go in and
analyze what the power systems looks
like, what the backup needs are."
But Emerson has
gotten more inquiries from customers
and potential customers wanting to
beef up their power systems after
the outage, and Bauer expects to see
more demand for these kinds of products.
"Exactly how big that will be
is hard to tell, but there (are) certainly
more people thinking about the need
for (backup power) today than two
weeks ago." Analysts agree that
the power failure will spur companies
to spend more money on backup power.
The costs of such installations typically
aren't made public. Saeed said, "Incidents
such as what New York faced last week
make people realize they have to be
on top of their power-backup needs,
power infrastructure." In the
past two years, many businesses have
held back spending on their power
infrastructure to save money, Saeed
said. "This is going to make
people upgrade their systems."
Growing demand for such equipment
won't come only from companies like
Equinix, whose "hardened"
facilities are among the most extreme
examples of power preparedness.
Increased dependence
on information systems and the Internet
is forcing many companies to conclude
that they need backup-power systems.
"Even in those companies who
are not going to spend a huge amount
of money on backup-power infrastructure,
many of them are now running with
information-technology systems that
provide a great source of productivity
and connectivity to their customers,"
Bauer said. "If you lose that,
you're in trouble." At the same
time, Emerson's network-power service
business, which provides maintenance
for backup-power systems, is seeing
increased demand from businesses suddenly
wanting to check installed equipment
and ensure that systems will run.
"Certainly,
one of the things proved through this
outage is that these kinds of systems
work," Bauer said. "For
those people who have invested in
them, certainly the NYSE, they probably
paid for their systems that day."
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