Optimizing Channel Marketing for VARs in the U.S. Secure Power Industry

Introduction 

Value-added resellers (VARs) play a critical role in the secure power industry, especially in the Uninterruptible Power Supply (UPS) sector. As businesses increasingly demand reliable backup power for data centers, edge computing sites, and critical infrastructure, manufacturers rely on VARs to extend their reach and expertise to end customers. This whitepaper explores how marketing professionals can optimize channel marketing strategies for VARs in the U.S. UPS market, covering actionable strategies, emerging trends, best practices, and key performance indicators with real-world case studies that illustrate successful channel partnerships. 

The UPS Market Landscape 

Market Growth and Potential 

The UPS market is robust and growing, driven by the digital economy's need for constant uptime. Globally, the market was about $9.1 billion in 2023 and is projected to reach over $15 billion by 2033 (5.2% CAGR). North America maintains a strong presence, fueled by extensive digital infrastructure and high reliability standards. In early 2024, a record 3,871 MW of data center capacity was under construction in North America (a 69% YoY increase), further fueling UPS demand to ensure power stability for critical operations. 

The Strategic Value of VARs 

VARs in the UPS sector typically bundle power protection with broader IT or industrial solutions, adding value through design, installation, integration, and maintenance services. By including UPS systems as standard components, VARs protect clients' investments while opening additional revenue streams. Manufacturers recognize that an indirect channel strategy extends their market reach into regions and verticals they cannot cover directly, leading top UPS vendors like Schneider Electric's APC, Eaton, and Vertiv to develop comprehensive partner programs. 

Channel Program Competition 

Top vendors are constantly enhancing their partner programs to stand out. CRN's annual Partner Program Guide awards 5-Star ratings to programs that provide exceptional incentives, training, support, and "go above and beyond" in empowering partners. Schneider Electric's channel programs have earned multiple 5-Star recognitions in recent years, reflecting a commitment to innovation and partner success. This competitive environment raises the bar for channel marketing in the UPS industry – making it imperative for channel marketers to implement robust strategies and stay ahead of trends. 

Six Core Strategies for Channel Marketing Success 

1. Develop Comprehensive Partner Programs 

A well-structured partner program forms the foundation of successful channel relationships. Define clear tiers (Silver, Gold, Platinum) with escalating rewards and requirements, alongside extensive training and certification paths that build expertise in UPS technologies. Schneider Electric's mySchneider IT Partner Program provides power certifications that transform resellers into "expert and strategic advisor[s]" for customers. Training ensures partners can articulate UPS benefits and design appropriate power solutions for each scenario, while financial incentives – discounts, rebates, and deal registration – reward partners for performance and focus. 

2. Enable Solution Selling and Bundling 

Encourage VARs to bundle UPS units with complementary products as part of total solutions. This increases average deal size while delivering better customer outcomes through complete "turnkey" protection. Eaton's channel team emphasizes that power protection should "always be an integral element of any turnkey IT package," effectively insuring clients' IT infrastructure while creating additional revenue for resellers. Provide sales playbooks outlining UPS positioning in various solutions and institutionalize these practices through sales engineers or configuration tools to ensure power protection is never neglected. 

3. Implement Joint Marketing Initiatives 

Empower channel partners through co-marketing efforts and Market Development Funds (MDF). Provide marketing collateral, campaign templates, and funds for local promotions, such as co-branded email campaigns highlighting UPS ROI or vertical-specific case studies. Simplify MDF access and reporting to create a frictionless experience that generates a steady lead flow. One successful example came from Schneider Electric's Smart-UPS campaign, which used targeted content and outbound calling to nurture prospects and convert 140 sales-qualified leads in just 60 days, distributed to engaged partners. 

4. Leverage Digital Tools and Data Analytics 

Modern channel marketing must be data-driven. Provide a robust partner portal where VARs can register deals, access product configurators, download marketing materials, and track training progress. Partner Relationship Management (PRM) systems and Through-Channel Marketing Automation enable partners to execute campaigns with pre-approved content while providing analytics on funnel metrics and engagement. Track metrics like content engagement and lead conversion to inform future MDF investments, rewarding partners who deliver results while ensuring channel efforts remain scalable and measurable. 

5. Promote Recurring Revenue Models 

The shift toward service-based offerings presents significant opportunities in the UPS space. Encourage partners to sell maintenance contracts, monitoring services, and subscription-based power solutions alongside hardware to build recurring revenue streams. APC by Schneider Electric created a Managed Services track that integrated UPS hardware with leading RMM platforms, enabling MSP partners to remotely monitor UPS status through the same dashboard as other IT assets. Package UPS offerings with cloud-based monitoring, battery replacement services, or "UPS-as-a-Service" leasing models to improve partner profitability while increasing customer lifetime value. 

6. Align Sales Teams and Target High-Value Verticals 

Ensure direct sales teams and channel partners are aligned rather than competing. Define clear deal registration protocols and rules of engagement to prevent channel conflict, and implement "co-selling" approaches where channel account managers work with partners on large opportunities. Simultaneously, tailor initiatives toward high-growth verticals like healthcare, financial services, government, and manufacturing. Develop vertical-specific sales kits with compliance information, ROI calculators, and specialized messaging, while identifying partners with industry expertise to co-develop case studies that strengthen their position as trusted advisors. 

Navigating Five Key Market Trends 

Edge Computing Expansion 

The rise of edge computing is increasing demand for smaller, network-grade UPS systems deployed not just in central data centers but across distributed sites like retail stores, branch offices, and IoT deployments. Channel marketers must educate partners on these new use cases and offer remotely managed, compact UPS products designed for unmanned locations. Campaigns should highlight edge-ready solutions and management services as growth areas where partners can differentiate their offerings. 

Cloud and Hybrid IT Integration 

Even as workloads move to cloud environments, on-premises power protection remains vital. Hybrid environments require reliable UPS in private cloud nodes and often backup power for on-prem edge gateways. Forward-looking partners now incorporate cloud-based management software for UPS fleets, offering customers cloud-like experiences for their power infrastructure. Channel marketing should emphasize how UPS solutions integrate with hybrid IT strategies, ensuring continuity across environments while reinforcing that power security remains non-negotiable in any IT modernization effort. 

Partner Ecosystem Evolution 

The U.S. channel ecosystem is experiencing consolidation, with larger VARs acquiring smaller ones and traditional resellers evolving into service providers. This means fewer but larger, more sophisticated partners in the UPS space. Vendors must nurture relationships with these key partners while potentially streamlining their partner base. As one industry CMO noted, partners facing consolidation prefer vendors who are "flexible, innovative, and willing to invest in the relationship through white glove services and extra benefits." Successful programs adapt to accommodate various partner sizes and business models, with personalized engagement for top-tier relationships. 

Services and Skills Gap Opportunities 

Many end-users (especially SMBs) lack in-house power management expertise, creating opportunities for VARs to provide managed power services. Businesses increasingly seek partners who can monitor UPS health, perform battery replacements, and ensure uptime without requiring electrical engineers on staff. Channel marketing should highlight partner service capabilities, positioning VARs as trusted outsourced power specialists. Vendors can support this by providing service training and certifications that validate partners as "Authorized Service Providers," creating additional value for both partners and customers. 

Solution Expansion and Digital Engagement 

Channel partners are broadening their portfolios to include adjacent technologies and address wider business challenges. For UPS VARs, this means offering related solutions like surge protection, PDUs, racks, cooling systems, and even renewable energy options. They're also connecting UPS solutions to trends like cybersecurity, AI, and sustainability. Channel marketers can leverage this by positioning UPS within larger solution bundles and aligning with broader market narratives. Meanwhile, the acceleration of digital engagement requires investment in virtual training, online certification, and through-channel digital marketing to ensure partners have strong web presence and SEO for UPS-related queries. 

Channel Marketing Best Practices 

Executive Commitment and Partner-First Culture 

Establish top-down commitment to the channel with patient leadership invested in long-term ROI. Treat the channel as an extension of your sales force, not a secondary route, and consistently advocate for partner needs in internal discussions. When vendors are truly channel-first, partners sense that dedication, building credibility and trust that translates into mutual success. 

Frictionless Partner Experience 

Simplify processes such as deal registration, ordering, rebate claims, and marketing fund requests. Partners will prioritize vendors who help them deliver smooth experiences to end-customers. Implement well-organized partner portals, quick support response times, automated systems for routine tasks, and dedicated channel account managers who serve as single points of contact for navigating issues. 

Consistent Communication and Relationship Building 

Maintain regular communication through quarterly business reviews, monthly newsletters, and periodic webinars or town halls. Solicit feedback through advisory councils and surveys to understand what's working and what needs improvement. Share success stories and best practices across the partner community to foster healthy competition and cross-learning. Focus on building deep relationships through in-person visits, product development feedback opportunities, and recognition programs that reward loyalty and performance. 

Tailored Partner Engagement 

Recognize that different partners have different needs based on size, vertical focus, and business model. Segment partners accordingly and tailor your engagement, offering relevant training paths, content, and incentives that align with each partner's business. MSPs might need different enablement tracks than traditional resellers, while consultants require different educational materials than direct sellers. By personalizing the partner journey, you increase the relevance of your marketing efforts and drive higher activation and productivity. 

Continuous Education and Improvement 

Given rapid technology evolution, treat training as an ongoing process rather than a one-time event. Update certification programs regularly and encourage annual recertification while providing multiple learning formats including e-learning, virtual training, and hands-on workshops. Well-trained partners can better articulate UPS value propositions, improving win rates and customer satisfaction. Continuously measure program performance, tracking partner utilization and outcomes to refine offerings—treating the partner program as a living product that evolves based on feedback and results. 

Measuring Success: Strategic KPIs 

Revenue and Partner Performance 

Track total revenue generated through the channel, broken down by partner tier, region, and product segment to identify growth patterns. Monitor the number of active partners (those who have transacted recently) along with average deal size and revenue per partner. If a small fraction of partners drives most sales, consider activating more partners or focusing enablement on mid-tier performers. Also evaluate partner coverage across target markets to ensure sufficient representation in key areas. 

Pipeline Development and Marketing Impact 

Measure the pipeline generated through partners, including registered deals, total pipeline value, and conversion rates. Track MDF-driven leads and campaign execution metrics to gauge marketing effectiveness. Low registration numbers might indicate hunting challenges or process friction, while high registration with low close rates could suggest competitive issues or skill gaps requiring targeted enablement. 

Training and Partner Satisfaction 

Monitor certification completion rates and training hours consumed across the partner base. These leading indicators often correlate with better technical adoption and sales performance. Conduct regular satisfaction surveys or calculate Partner Net Promoter Score (pNPS) to understand how valued partners feel in the relationship. Track retention rates as well—partner churn often signals issues in program value proposition that require investigation. 

Customer Outcomes and Marketing Efficiency 

Measure the customer success delivered by partners, including retention rates on partner-sold services and solution attach rates. In secure power contexts, track metrics like "outages prevented by UPS solutions" to reinforce value delivery. Simultaneously evaluate cost-effectiveness through metrics like cost per acquisition and marketing ROI for channel campaigns. Compare these to direct marketing efforts while recognizing that channel sales typically have lower overall costs since partners carry much of the selling expense. 

Success Stories: Channel Excellence in Action 

Schneider Electric: Enabling Managed Power Services 

Recognizing VARs' struggles with declining hardware margins, Schneider Electric launched a Managed Services Channel Track within their partner program in 2016. They developed integrations between Smart-UPS devices and popular MSP software tools, enabling remote monitoring through existing service dashboards. The program offered specialized training, flexible financial options, dedicated support, and comprehensive resources—all with minimal revenue requirements to lower entry barriers. This forward-looking initiative helped traditional resellers transition to service-based models while giving cloud-native MSPs reasons to add UPS to their portfolios, creating new recurring revenue opportunities during a time of "slowing hardware sales and shrinking margins." 

Eaton: Maximizing UPS Attachment Rates 

Eaton's PowerAdvantage program focused on making power protection an easy, default inclusion for IT solutions. They educated partners on the philosophy that "anytime we do a server build, we put in UPSs" as standard practice, providing design tools and consulting to help properly size units for specific implementations. To simplify sales, they offered pre-configured bundles, quick quote tools, and demonstration units that helped partners showcase UPS value to skeptical clients. Their marketing materials emphasized downtime costs and the "insurance" value of UPS protection. Partners like IS Systems subsequently grew their power quality business substantially, strengthening customer relationships by delivering comprehensive high-availability environments. 

Joint Marketing Campaign Success 

A major UPS vendor launched a collaborative campaign with Gold-tier VARs that combined content marketing, digital outreach, and interactive webinars. They created thought leadership materials including an eBook on downtime prevention, customer testimonial videos, and an outage cost calculator—all co-branded and distributed through partner channels. Live webinars co-hosted by vendor product managers and partner solution architects drove real-time engagement, while inside sales teams qualified leads before distributing them to appropriate regional VARs. Over just two months, the campaign generated 150 sales-qualified leads that partners reported were well-educated and ready to engage, accelerating sales cycles and building long-term pipeline value. 

Conclusion 

Channel marketing in the U.S. secure power industry requires both strategic vision and tactical excellence. By focusing on partner enablement, joint value creation, and market trend awareness, marketing leaders can substantially boost VAR channel performance. The growing digital infrastructure market makes UPS solutions increasingly critical, and properly supported VARs are ideally positioned to deliver these solutions to end-users. 

Success requires building partner-centric programs with comprehensive training and incentives, encouraging service-based revenue models, and leveraging data-driven marketing to generate demand. As trends like edge computing, hybrid cloud, and sustainability reshape the market, maintaining frictionless partner experiences and measuring appropriate KPIs ensures continuous alignment between vendor goals and partner success. 

The case studies presented demonstrate theory in action: Schneider Electric's managed services enablement, Eaton's emphasis on default power protection, and collaborative lead generation efforts all show that when vendors invest in partner growth, both parties win. By following the strategies and practices outlined in this whitepaper, B2B marketing professionals can strengthen their channel strategy and drive sustainable growth in the secure power industry.