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2016 Global Modular Data CentersCompany of the Year Award
2016
GLOBAL MODULAR DATA CENTERS COMPANY OF THE YEAR AWARD
2016
BEST PRACTICES RESEARCH
© Frost & Sullivan 2017 2 “We Accelerate Growth”
Contents
Background and Company Performance ........................................................................ 3
Industry Challenges .............................................................................................. 3
Visionary Innovation & Performance and Customer Impact ........................................ 3
Conclusion........................................................................................................... 7
Significance of Company of the Year ............................................................................. 8
Understanding Company of the Year ............................................................................. 8
Key Benchmarking Criteria .................................................................................... 9
Visionary Innovation & Performance ....................................................................... 9
Customer Impact ................................................................................................. 9
The Intersection between 360-Degree Research and Best Practices Awards ..................... 10
Research Methodology ........................................................................................ 10
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 11
About Frost & Sullivan .............................................................................................. 12
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Background and Company Performance
Industry Challenges
The modular data center market is highly fragmented with a high degree of competition.
The players in this market face the challenge of competing with two types of
organizations; the traditional data center providers such as retail and wholesale multi-
tenant providers and other modular and containerized data center manufacturers. The
underlying challenge in the modular data center market is the lack of awareness and
skepticism among end users. It is of paramount importance that market players take
meticulous efforts to educate and demonstrate the benefits and advantages of a true
modular solution. While there are many inadequate or inappropriate solutions in the
market which do not offer true modularity, it is extremely important for modular data
center players to incorporate value added features and new functionalities in their
products to gain a competitive edge in the market.
The other key challenge in the market is suitability of available modular solutions to
improve financial ratios. End users in this market can be broadly categorized into two
groups – enterprises and co-location providers. The needs of these two groups vary
depending on their applications. Modular data center manufacturers are presented with a
challenge of developing solutions that would fit the individual needs of these varying end
user groups. There is no one solution that would fit all. It is quite crucial for
manufacturers to be able to provide a broad set of modular solutions which offer multi
segment options.
Visionary Innovation & Performance and Customer Impact
Visionary Scenarios through Mega Trends
Cannon’s futuristic approach towards product development has placed it in the forefront of
this highly competitive industry. It constantly strives to be a step ahead of its competitors
with respect to technology and innovation and has been successful thus far. This is
primarily driven by its high focus on tracking and analyzing mega trends. By anticipating a
growing requirement for added flexibility and customization, Cannon has incorporated
further granularities in its modular solutions. Its extremely focused R&D efforts involving
heavy investments have resulted in the company achieving micro-granular capabilities in
its range of data centers; including granularities in mechanical, electrical and housing
features. With this, Cannon now possesses a truly unique capability to provide widely
varying designs from standard to pre-engineered sub modules. In 2016, Cannon launched
its “Stock Data Center” portfolio with a vision to significantly reduce client stress on
design considerations, cut costs, and fast track deployment time.
Capitalizing on its extensive intellectual property, technology know-how and forty year
history of creating wide ranging data center facilities of traditional and modular build,
Cannon has assembled a portfolio of the most popular and frequently requested
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specifications to satisfy the diverse and bespoke needs of the Global market; it is offering
these as "Cannon Stock Data Centers". The unique advantage of these pre-engineered,
pre-designed and pre-specified solutions is that 100% of the costly up front computer
aided designs, mechanical & electrical (M&E) designs and specifications are all already
completed and proven. This can save a year or more of heavy design effort and also
removes a substantially front loaded financial investment requirement, cutting overall cost
and saving valuable lead time to commissioning the eventual facility. Furthermore,
Cannon’s Stock Portfolio also allows for easy customization. Given its technology
excellence, client specific tweaks are readily accomplished. The company is able to
seamlessly provide unmatched speed of new project configuration, which means that even
bespoke client solutions are quick to generate. Frost & Sullivan believes that Cannon’s
"Stock Data Centers" will be of immense help to end users as it presents a wide range of
sensible and proven options and fixed budget solutions, allowing the customer to focus on
their core business. This visionary approach has a genuine potential to disrupt the market
and overshadow current solutions, ultimately shaking up competition.
Excellence in Addressing unmet needs
Frost & Sullivan finds Cannon’s growth in the modular data center industry highly
impressive. The company has grown from being a European pioneer to becoming a global
leader in visionary innovation and customer impact. The driving force behind its success is
its astronomical perseverance and commitment to pursuing its vision of creating highly
superior modular data centers that not only address customers’ current needs, but also
evolving future needs. Cannon runs several internal programs to identify client
frustrations and industry pain points, the key one being its “Sector Need” program.
Furthermore, it goes to great lengths to research the market to gauge the positive take up
of its proposed new innovation. This ingrained process gives Cannon a significant edge in
this highly competitive market.
There are many examples to demonstrate Cannon’s innovation excellence based on its
“Sector Need” program. “Cannon Smart Space Cabinet”, the integrated range of “Rack
Door Locks”, and “Cannon Free Form Infrastructure” are some of the riveting innovations
aimed at addressing customers’ unmet needs. The Cannon “Smart Space Cabinet” is an
integrated system rather than a standalone rack which successfully addresses the industry
pain point of effectively managing cooling air flow within the rack. Furthermore, it also
provides the end user with an opportunity to open or close “cross cabling” between racks
at will. The integrated range of “Rack Door Locks” enables easy upgrade of the rack door
locking system from a standard key lock to a mechanical combination locking system,
electronic/key pad locking system, stainless steel & motor driven high security locking
system, and finger print locking system. Its “Free Form Infrastructure” employs an
innovative technology, making it far superior to the traditional techniques/methods that
are used to modify the IT infrastructure in a cabinet. It enables instant change in the
architecture while preserving the operational environment at the same time.
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Industry Leading Customer Ownership Experience
It is Frost & Sullivan’s finding that Cannon offers industry leading customer ownership
experience throughout the life cycle of its products. There are two important factors when
it comes to providing an excellent ownership experience; product performance and client
relationship. Cannon excels at both. The company’s close interaction with the customer
right from the beginning of a project has been its key success factor in building and
maintaining a positive experience, resulting in a lasting bond. This is evident from its
constantly increasing list of repeat orders and positive customer testimonials. The other
prominent success factor for Cannon is its relentless efforts to enhance product
performance through innovation. Its recent innovation “DCIM LITE” is a fitting example.
The company offers a wide range of technically advanced datacenter infrastructure
management (DCIM) solutions which were developed over the past twenty years.
However, in an effort to enhance user experience, the company has invested heavily over
the past eighteen months to come up with a DCIM solution that significantly reduces the
complexity of monitoring and reporting functions. The unique aspect of DCIM LITE is that
it possesses all the capabilities of full DCIM underneath, and is carefully sculptured at the
front end to substantially ease operating strains.
Cannon has come up with two new revolutionary solutions as an addition to its range of
modular data centers: “Modular Basement” and “Modular Loft”. These are specially
designed optional data hall structures which offer various new attributes to a modular data
center, ultimately enhancing customer value and ownership experience. Cannon offers
these units in various heights ranging from a minimal height (to accommodate only
pipework), to a full standing room height. These are easy to transport and are either pre-
assembled or assembled on site. Some of the key benefits these units offer are cabling,
power & cooling equipment accommodation, pipework accommodation, flood protection,
storage, and enhanced air flow options. By providing a compact, multi-use fresh air
delivery solution, these innovative units address the challenges surrounding the use of
direct fresh air cooling. Key issues addressed are the possibility of outdoor air
contaminating and damaging the IT equipment and the need for large air
corridors/plenums and control structures which negatively impact site utilization and
CAPEX efficiency.
Implementation of Best Practices
Cannon’s modular data centers offer true expandability with power & cooling
upgradability, best of breed infrastructure, together with low PUE and high resilience. Its
best-in-class strategy implementation is characterized by processes, tools, and activities
that generate a consistent and repeatable level of success. The company’s excellence in
implementing best practices can be categorized in to two broad aspects – “data Hall
usability & compliance” and “future proofing of the financial investment”. Cannon’s
innovation excellence has catapulted it significantly in the technology curve, placing it way
ahead of its competitors in terms of data hall usability concepts. Some of its data hall
usability enhancements include:
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Specially designed racks that offer multiple depths (to cater to deeper servers)
Extensive cabling options - overhead and/or underfloor
Free Form spaces for customer specifics
Rack supported cable raceway to avoid roof supports
Matching cable glands in racks for easy installation,
Multiple width aisles
EMC upgrades for secure data needs
Active and passive “Aisle Cocooning”
Micro modular UPS and power distribution options
Low energy lighting,
Light tubes for no energy daytime lighting,
180degree rack doors for urgent rapid egress,
Cannon Patrol for easy walk by monitoring of key conditions via rack roof-level
read out screens.
Co-location or single enterprise data hall layouts with variable access corridors to
suit individual needs – vertically divisible Racks for micro retail renting.
Removable divider systems that segregate long data halls into mini data pods
In terms of future proofing of the financial investment, Cannon has the unique ability to
address the investment conundrum faced by data center owners andoperators in terms of
power and cooling specifications. It solves two of the most pressing issues – 1) over
specifying power and cooling leading to unnecessary capital investment and operating with
low efficiency which reduces profitability and 2) Under specifying and being unable to
operate at higher power densities, thereby, writing off the initial investment and hence
calling for a major rebuild. The company is able to achieve this with its visionary micro-
modular design approach termed as “Cannon Pocket System”. This offers easy, non-
disruptive pathways to higher power and cooling density upgrades by allowing future
additions of power and cooling units seamlessly.
Excellent Price/Performance Value
Cannon’s Products and solutions offer the best value for the price, compared to similar
offerings in the market. Since its inception, the company’s rack offering and associated
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data hall infrastructure has been topping the price vs value equation around the world. Its
expertise in providing right-sized solutions, capable of delivering best-in-class density per
unit floor space, make it highly competitive with respect to price/performance value. Its
solutions are highly commendable for their low initial cost, best use of available site
(virtually no wasted space), easy and low cost power/cooling density upgrades, and easy
and low cost space expansions.
Brand Equity
Cannon has been gaining significant brand recognition over the past few years. The
company has gained a reputation of delivering solutions, products, and services of a high
standard that specifically addresses customers’ unmet needs. Its brand name is not only
synonymous with quality, performance, and price competitiveness, but is also well known
for establishing excellent customer relationships and ensuring “best in class” practices to
distinguish itself in the industry. While continuing to grow its business with its existing
customer base, Cannon has also been highly successful in acquiring new customers across
the world, especially over the past 12 to 18 months. Its ability to penetrate various end
user applications also warrants a special mention; especially its success in government
and manufacturing sectors is astonishing. The company was recently selected as a
preferred modular data center vendor by a leading global manufacturing company to re-
equip a vast majority of their locations with upgraded IT, in modern modular data centers
of varying capacities. Cannon was selected after two years of meticulous technical
deliberations which included competing against several global modular data center
vendors.
Conclusion
Cannon has tremendous focus on product development, innovation, technology and
operational efficiencies. These key factors have led to its success as the global leader in
providing customer value. The company’s commitment to its customers is highly
commendable, where it brings value addition to them not just from a product perspective
but also from a process perspective. Its success in acquiring new customers and
penetrating multiple end user applications is astonishing.
It is Frost & Sullivan’s finding that Cannon is a company that is obsessed with
improvement; a trait that is expected to drive its success to greater heights in the global
arena. Because of its strong overall performance, Cannon Technologies is recognized with
Frost & Sullivan’s 2016 Company of the Year Award.
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Significance of Company of the Year
To win the Company of the Year award (i.e., to be recognized as a leader not only in your
industry, but among your non-industry peers as well) requires a company to demonstrate
excellence in growth, innovation, and leadership. This kind of excellence typically
translates into superior performance in three key areas: demand generation, brand
development, and competitive positioning. These areas serve as the foundation of a
company’s future success and prepare it to deliver on the two criteria that define the
Company of the Year Award (Visionary Innovation & Performance and Customer Impact).
Understanding Company of the Year
As discussed above, driving demand, brand strength, and competitive differentiation all
play a critical role in delivering unique value to customers. This three-fold focus, however,
must ideally be complemented by an equally rigorous focus on visionary innovation to
enhance customer value and impact.
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Key Benchmarking Criteria
For the Company of the Year Award, Frost & Sullivan analysts independently evaluated
two key factors—Visionary Innovation & Performance and Customer Impact—according to
the criteria identified below.
Visionary Innovation & Performance
Criterion 1: Addressing Unmet Needs
Requirement: Implementing a robust process to continuously unearth customers’ unmet
or under-served needs, and creating the products or solutions to address them effectively
Criterion 2: Visionary Scenarios Through Mega Trends
Requirement: Incorporating long-range, macro-level scenarios into the innovation
strategy, thereby enabling “first to market” growth opportunities solutions
Criterion 4: Implementation of Best Practices
Requirement: Best-in-class strategy implementation characterized by processes, tools, or
activities that generate a consistent and repeatable level of success.
Criterion 3: Blue Ocean Strategy
Requirement: Strategic focus in creating a leadership position in a potentially
“uncontested” market space, manifested by stiff barriers to entry for competitors
Criterion 5: Financial Performance
Requirement: Strong overall business performance in terms of revenues, revenue growth,
operating margin and other key financial metrics
Customer Impact
Criterion 1: Price/Performance Value
Requirement: Products or services offer the best value for the price, compared to similar
offerings in the market
Criterion 2: Customer Purchase Experience
Requirement: Customers feel like they are buying the most optimal solution that
addresses both their unique needs and their unique constraints
Criterion 3: Customer Ownership Experience
Requirement: Customers are proud to own the company’s product or service, and have a
positive experience throughout the life of the product or service
Criterion 4: Customer Service Experience
Requirement: Customer service is accessible, fast, stress-free, and of high quality
Criterion 5: Brand Equity
Requirement: Customers have a positive view of the brand and exhibit high brand loyalty
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The Intersection between 360-Degree Research and Best
Practices Awards
Research Methodology
Frost & Sullivan’s 360-degree research
methodology represents the analytical
rigor of our research process. It offers a
360-degree-view of industry challenges,
trends, and issues by integrating all 7 of
Frost & Sullivan's research methodologies.
Too often, companies make important
growth decisions based on a narrow
understanding of their environment,
leading to errors of both omission and
commission. Successful growth strategies
are founded on a thorough understanding
of market, technical, economic, financial,
customer, best practices, and demographic
analyses. The integration of these research
disciplines into the 360-degree research
methodology provides an evaluation
platform for benchmarking industry
players and for identifying those performing at best-in-class levels.
360-DEGREE RESEARCH: SEEING ORDER IN
THE CHAOS
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Best Practices Recognition: 10 Steps to Researching,
Identifying, and Recognizing Best Practices
Frost & Sullivan Awards follow a 10-step process to evaluate Award candidates and assess
their fit with select best practice criteria. The reputation and integrity of the Awards are
based on close adherence to this process.
STEP OBJECTIVE KEY ACTIVITIES OUTPUT
1 Monitor, target, and screen
Identify award recipient candidates from around the globe
Conduct in-depth industry research
Identify emerging sectors Scan multiple geographies
Pipeline of candidates who potentially meet all best-practice criteria
2 Perform 360-degree research
Perform comprehensive, 360-degree research on all candidates in the pipeline
Interview thought leaders and industry practitioners
Assess candidates’ fit with best-practice criteria
Rank all candidates
Matrix positioning all candidates’ performance relative to one another
3
Invite thought leadership in best practices
Perform in-depth examination of all candidates
Confirm best-practice criteria Examine eligibility of all
candidates Identify any information gaps
Detailed profiles of all ranked candidates
4
Initiate research director review
Conduct an unbiased evaluation of all candidate profiles
Brainstorm ranking options Invite multiple perspectives
on candidates’ performance Update candidate profiles
Final prioritization of all eligible candidates and companion best-practice positioning paper
5
Assemble panel of industry experts
Present findings to an expert panel of industry thought leaders
Share findings Strengthen cases for
candidate eligibility Prioritize candidates
Refined list of prioritized award candidates
6
Conduct global industry review
Build consensus on award candidates’ eligibility
Hold global team meeting to review all candidates
Pressure-test fit with criteria Confirm inclusion of all
eligible candidates
Final list of eligible award candidates, representing success stories worldwide
7 Perform quality check
Develop official award consideration materials
Perform final performance benchmarking activities
Write nominations Perform quality review
High-quality, accurate, and creative presentation of nominees’ successes
8
Reconnect with panel of industry experts
Finalize the selection of the best-practice award recipient
Review analysis with panel Build consensus Select winner
Decision on which company performs best against all best-practice criteria
9 Communicate recognition
Inform award recipient of award recognition
Present award to the CEO Inspire the organization for
continued success Celebrate the recipient’s
performance
Announcement of award and plan for how recipient can use the award to enhance the brand
10 Take strategic action
Upon licensing, company may share award news with stakeholders and customers
Coordinate media outreach Design a marketing plan Assess award’s role in future
strategic planning
Widespread awareness of recipient’s award status among investors, media personnel, and employees
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About Frost & Sullivan
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