APC 2007 Annual Report Download - page 20

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Data centers and networks
Metaphorically, data centers, which process and store mil-
lions on millions of bytes of information, are the central
nervous systems of small businesses, multinational cor-
porations and government services. Physically, they are
buildings filled with servers in secure, air-conditioned
rooms.
Given the growing digitalization of social, professional and
personal activities, data centers represent a market des-
tined for exponential growth. By 2010, there should be 45
million servers worldwide–nine times more than in 1996.
Yet as more and more servers are squeezed into data cen-
ters, more and more energy is needed to operate and cool
them. Electricity represents 7% to 12% of current operat-
ing budgets, up 20% since 2003. This is expected to rise to
between 25% and 40% in the years ahead.
As a result, CIOs in large and small companies, data cen-
ter managers, software publishers, server manufacturers
and other customers are looking for high performance,
cost-effective solutions that are also reliable and secure.
With the acquisition of APC in 2007, Schneider Electric
now has a dedicated, unparalleled lineup to meet their
needs.
Solutions include:
Architecture design and installation audits.
Leading-edge UPS systems, electrical switchgear, gen-
erators, solid state contactors, power inverters, harmonic
filters, etc.
Online supervision and analysis.
Training and maintenance.
This new market represented 17% of Schneider Electric’s
business in 2007.
Residential
The market for single-family homes and apartment build-
ings is extremely diverse in terms of standards and re-
gional characteristics. It offers significant growth prospects
that vary from region to region.
In Western Europe and the US, demand for comfort, safety
and energy savings dominates, which is why renovation
and home improvement represent nearly two-thirds of the
market. Thanks to Schneider Electric’s diversified portfo-
lio, the American real estate crisis in 2007 had little impact
on business. In emerging markets, the Group is targeting
newbuilding to serve immense needs, with a particular
focus on large housing programs in Eastern Europe, the
Middle East, China and other Asian countries.
In 2007, the Group leveraged the potential of recent ac-
quisitions by streamlining its product and service ranges.
Schneider Electric’s easy-to-operate, upgradeable and at-
tractive solutions make homes safe and comfortable while
facilitating communication.
The lineup covers:
Electrical distribution.
Home automation (supervision, safety, energy effi-
ciency).
Voice-Data-Image and Power Line Carrier communica-
tion networks.
Critical power.
The Group offers electrical installations that are both en-
ergy efficient and highly reliable, as well as flexible, open
and easy to install automation solutions and remote man-
agement services via the Internet.
The Industry market lineup includes solutions for:
Machine control and monitoring.
Energy management and metering.
Process automation.
Electric power supply and distribution.
Single site or multi-site production data management.
Customer management.
Schneider Electric works closely with customers to get a
thorough understanding of their applications and to help
enhance productivity, flexibility, process and installation
safety and product traceability.
The Group’s main customers in this market include engi-
neering and design firms, systems integrators, OEMs, pan-
elbuilders and electrical equipment distributors.
Buildings
Over the past ten years, users have become much more
demanding when it comes to comfort, security, communi-
cation and energy savings. Building automation and cen-
tralized building management have developed significantly
in response to this global trend.
This market covers all types of service, commercial and in-
dustrial buildings, including offices, hotels, hospitals, shop-
ping centers, manufacturing facilities, schools, sports and
cultural centers and ships. Customers are looking for prod-
ucts and services that can optimize maintenance and en-
ergy costs and consumption while enabling simultaneous
management from several sites via the Internet.
In 2007, the Group fully leveraged the synergy generated
by strategic acquisitions over the past five years.
Schneider Electric’s lineup for the Building market includes
solutions for:
Electric power supply and distribution.
Utility management (lighting, air conditioning, elevators,
intruder alert, etc.).
Data exchange (Voice-Data-Image, Power Line Carrier
and radio technologies).
Multi-site remote management.
Available everywhere, the lineup complies with local stan-
dards and practices. The Group offers networkable prod-
ucts that are easy to install and operate.
Main customers include developers, engineering and de-
sign firms, systems integrators, contractors, panelbuilders,
electrical equipment distributors and building operators.
50% of the world’s people live in cities
In 2015, 36 mega-cities will have populations
of more than 10 million (compared with 23 in
1996).
Cities in developing nations will be home to
4 billion people by 2030.
Source: UN World Urbanization Prospects, October 2006.