Vertiv Holdings Co (Vertiv) is a global leader in the design, manufacturing and servicing of critical digital infrastructure for data centers, communication networks, and commercial and industrial environments.
The company’s customers operate in some of the world's most critical and growing industries, including cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail.
The company collaborates with its customers to e...
Vertiv Holdings Co (Vertiv) is a global leader in the design, manufacturing and servicing of critical digital infrastructure for data centers, communication networks, and commercial and industrial environments.
The company’s customers operate in some of the world's most critical and growing industries, including cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail.
The company collaborates with its customers to envision and build future-ready infrastructures. The company’s portfolio of hardware, software, analytics and services aim to enable its customers' vital applications to run continuously, perform optimally and scale with business needs.
Large companies, such as communication network and cloud/hyperscale and colocation data center providers, comprise a material portion of the company’s customer base and generally have greater purchasing power than smaller entities. The company derives a portion of its revenue from contracts with governmental customers, including the U.S. federal, state and local governments.
Business
Vertiv designs, manufactures, sells, installs, maintains, and services critical digital infrastructure technologies and rapidly deployable customized solutions to meet the specific business requirements and needs of a diverse group of customers. The company’s global footprint comprises engineering, manufacturing, operations, sales, and service locations in more than 40 countries across the Americas, the Asia Pacific, and Europe, the Middle East & Africa. The company provides the hardware, software and services to facilitate an increasingly interconnected marketplace of digital systems where large amounts of indispensable data need to be transmitted, analyzed, processed and stored. Whether this growing quantity of data is managed centrally in hyperscale/cloud locations, distributed at the edge of the network, processed in an enterprise location or managed via a hybrid platform, the underpinnings and operations of all those locations rely on the company’s critical digital infrastructure and services.
The company’s broad range of offerings includes AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure. These comprehensive offerings are integral to the reliable operation of the technologies used for services, such as e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things and online gaming. In addition, through the company’s global services network, it provides lifecycle management services, predictive analytics and professional services for deploying, maintaining and optimizing these products and their related systems. The company’s most prominent brands include Vertiv, Liebert, NetSure, Geist, Energy Labs, ERS, Alber, and Avocent.
The company manages its business across three reportable segments based on its main geographic regions—the Americas, Asia Pacific and Europe, Middle East & Africa.
Strategic Priorities
The company's businesses are focused on the following strategic priorities:
Maintain Customer Focus: Enhance the customer experience through best in-class tools, commercial, technical, delivery, and service execution; nurture strong customer relationships; and create superior customer value enabling demand and margin expansion.
Build a High-Performance Culture: Foster a culture of accountability, collaboration, and speed; develop a widespread sense of urgency and reward performance; and deliver on commitments and execute agreed plans.
Foster Innovation: Be a market leader in the company's technology and service domains and continue to differentiate through the company's new products; develop and introduce processes with effectiveness and velocity; and develop system-level strength that leverages the company's unique product and services portfolio.
Customers
The company's customers operate in some of the world's most critical industries. The company primarily serves customers across three main end markets: data centers (including hyperscale/cloud, colocation, and enterprise); communication networks; and commercial and industrial applications.
Data Centers: The primary purpose of a data center is to process, store, and distribute data. There are a host of different sizes and types of data centers, but primarily they can be broken down into the following classifications:
Cloud/Hyperscale: These facilities are massive in scale and are primarily used to support cloud applications. This portion of the industry is growing rapidly with drivers such as adoption of cloud-based data services and artificial intelligence workloads. Examples of companies in this space include Microsoft Azure, Amazon Web Services, and Google Cloud.
Colocation: These facilities range in size and offer clients a location where they can place their information technology ('IT') equipment, while the building and critical digital infrastructure is owned by the colocation company. This portion of the industry is on a rapid growth trajectory. Examples of companies in this space include Digital Realty, Equinix, Compass, and QTS.
Enterprise: This classification refers to the 'Fortune 1000' scale businesses that have their own on-premises data centers. Examples of companies in this space include Goldman Sachs, J.P. Morgan, Walmart and Allianz.
Communication Networks: This space is consisted of wireline, wireless, and broadband companies. These companies create content and are ultimately responsible for distributing voice, video, and data to businesses and consumers. They deliver this data through an intricate network of wireline and wireless mediums. Additionally, some of these companies' locations act as data centers where the data is delivered, processed and stored. This sector has a generally low single-digit growth profile and generally aligned with telecom capex investment and new mobile deployment cycles.
Commercial and Industrial: This space is consisted of commercial and industrial environments where the company's products keep critical systems running. Examples include transportation, manufacturing, and oil and gas. These applications are growing in their need for intelligent infrastructure and may be regulated or need to satisfy some level of compliance. The growth in this area generally aligns with changes in gross domestic product and can be further driven by increased automation and digitalization in both light and heavy industrial application environments.
The company engages these industries and end users through the company's global network of direct sales professionals, independent sales representatives, channel partners and original equipment manufacturers. Many of the company's installations are completed in collaboration with the company's customers and the company works with them from the initial planning phase through delivery and servicing of the completed solution. This depth of interaction supports key customer relationships, sometimes spanning multiple decades.
Offerings
The company designs, manufactures, and services critical digital infrastructure technology primarily for data centers, communication networks, and commercial and industrial environments. The company’s principal offerings include:
Products
The company identifies the delivery of products as performance obligations. Such products include AC and DC power management, thermal management, low/medium voltage switchgear, busbar, integrated modular solutions, racks, single phase UPS, rack power distribution, rack thermal systems, configurable integrated solutions, energy storage solutions, hardware, and software for managing I.T. equipment.
Services & spares
Global services include both pre-sale and after-sales services, for example, preventative maintenance, project management, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and critical digital infrastructure software. The company provides consistent service delivery for critical facilities in all regions of the world with service provided by knowledgeable, local specialists. Regular service of critical equipment supports maximum uptime and often reduces total cost of ownership for customers. The company provides full support of critical digital infrastructures when and where its customers need the company. Vertiv services are used primarily in data centers, communications facilities, government agencies, utilities, and industrial plants. Across the globe, the company operates over 300 service centers and deploys approximately 4,000 service engineers.
Competition
Across the company’s three geographic segments, it encounters two principal types of competitors: niche players (e.g., Delta Electronics, Inc., Stulz GmbH, Johnson Controls International PLC, and Socomec Holding SA) and large-scale global competitors (e.g., Schneider Electric, S.E., Eaton Corporation Plc, Legrand SA, and Huawei Investment & Holding Co., Ltd.).
Sales and Marketing
The company’s customers are located across the globe. The company goes to market through multiple channels to ensure that the company maps its coverage to its customers’ buying behaviors and preferences. The company’s primary selling method is direct sales. It has approximately 3,000 salespeople located around the world. The company also utilizes a robust network of channel partners, distributors, I.T. resellers, and value-added retailers. This network helps extend the company’s global reach to all corners of the world.
Vertiv Operating System
The Vertiv Operating System (‘VOS’) leverages a proven foundational approach to operational excellence and executes it at scale to drive greater efficiency, quality, competitive advantage and superior customer experience. The company’s VOS provides a clear operating model and a systemic way to run the business across the entire organization through rigorous operating cadences, leverages lean or continuous improvement techniques focused on waste and cycle-time reduction, streamlined processes, and promotes the dissemination of best practices. The company’s enterprise approach is articulated in four main pillars: the deployment of the operating system based on pervasive lean techniques propagation; the development of an accountable and lean organization aligned to Vertiv strategic objectives; the creation and maintenance of a simple yet robust global operating model; the empowerment of the organization run day-by-day continuous improvement and complex business process transformation. As a consequence, for each of the company’s seven main interconnected processes (opportunity-to-order, order-to-cash, procure-to-pay, sales inventory and operations planning, order-to-fulfillment, new product development and introduction, and multiple service processes), the company has assigned clear business ownership at the global and regional level.
Engineering, Research and Development
In 2024, Vertiv spent $352.1 on engineering, research and development.
Intellectual Property
The company considers its trademarks to be valuable assets, including well-known marks within the industry, such as Vertiv, Liebert, NetSure, Geist, Energy Labs, ERS, Albér, and Avocent.
As of December 31, 2024, Vertiv had approximately 3,000 registered patents and approximately 1,200 pending, published or allowed patent applications, and approximately 1,800 registered trademarks and approximately 300 pending trademark applications.
Environmental, Health and Safety and Responsible Business Practices
The company has a program for complying with the European Union Restriction on the Use of Certain Hazardous Substances and Waste Electrical and Electronic Equipment Directives, the China Restriction of Hazardous Substances law, the European Union Registration, Evaluation, Authorization and Restriction of Chemicals regulation, and similar requirements.