cannon technologies award write up

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



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



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.



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:



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



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.



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.



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



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



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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cannon technologies award write up

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