Mission Critical Power on new pay-per-use: UPSaaS™
The UPSaaS™ programme was created in response to the demand created in the wake of SaaS (Software as a Service) and PaaS (Platform as a Service).The key benefits of UPSaaS™ include the ability to use fully conditioned, uninterruptable, power for mission critical applications on a power consumption (kWh) basis, the ability to support a business’s anticipated load growth without extra on-going cost increases, and no need for upfront capital expenditure. All costs involved are allocated to the operating expenditure of a business, (OPEX) just like any other utility, allowing for beneficial accounting and tax treatment of these “off balance sheet” costs.
UPSaaS™ is not a leasing arrangement. It’s simply much better!
Unlike traditional capital equipment leases UPSaaS™ is an open-ended contract between Burland Energy SA and the end user/operator. Customers will never assume ownership of any equipment needed to provide the conditioned 100% available power (representing a move from CAPEX to OPEX). Furthermore, rather than fixed monthly payments, monthly billing is based upon a fixed rate per kWh consumed, just like any other utility provider. Today the fiscal benefits of UPSaaS™ and a standard product lease are similar, but this looks to change in favour of UPSaaS™ soon. Details of these changes can be found in the following detailed report from Price Waterhouse Coopers. (http://www.pwc.com/
With the new accounting standards outlined in the report, UPSaaS™ customers continue booking the related costs to their operational expenditure (OPEX) and avoid capital investment (financing) and asset depreciation.
UPSaaS™ is a sensible and disruptive change!
Considering all the benefits of UPSaaS™, it will challenge the critical power industry being the most economically viable methodology to receive conditioned power to mission critical applications. Typically these considerations include (but not limited to):-
- Costs of financing
- Costs of maintenance and service
- Costs of asset depreciation
- Anticipated future load growth
- Fiscal benefits
Attached is a worked example comparing a $91,000 UPS with a user’s anticipated doubling of load during a 5 year period. It shows the product acquired directly (blue line) and with UPSaaS™ without the fiscal impact (red line).
How does UPSaaS™ work?
In order to produce an UPSaaS™ proposal customer need to know a couple of parameters: the initial current load, anticipated growth in load requirement and the time period (to support that growth). These parameters are enough to set work out the cost per unit kWh.
After due diligence and contractual obligations are completed, Burland Energy SA and its OEM partners will install and commission the equipment and the customer can benefit from the output of the system (conditioned, guaranteed power).
UPSaaS™ is a vendor neutral program and as such, client preferences for vendor can be incorporated into the proposal.
What’s the catch with UPSaaS™?
There is no catch!UPSaaS™
Burland Energy SA is a Geneva based international business set up as an off shoot of Burland Technology Solutions in the UK. Burland Energy is the first business to offer mission critical power services in an “on demand” way with their UPSaaSTM program, targeted primarily at the data centre, industrial and healthcare sectors. Visit www.burlandenergy.com for more information.