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OCZ Technology has recently announced acquisition of the well-known power supply unit developer – PC Power & Cooling, which aroused a lot of questions regarding the future of the "new" company, its strategic approach to the PSU business, the effect on other market segments they work in. We decided to ask these questions to the company CEO and executive VPs.

OCZ Technology Company has been increasing the variety of solutions that are being sold under their brand name very rapidly over the past few years. OCZ Technology that has earned its great reputation due to high-performance memory for computer enthusiasts is currently offering broad range of computer components, such as power supply units, CPU coolers, graphics adapters (Nvidia GeForce 8800 GTX), flash-memory and computer peripherals. And starting this year the company started entering new regional markets, namely Asian-Pacific regions.

Proving that they are good at whatever they do, OCZ Technology has recently announced acquisition of the well-known power supply unit developer – PC Power & Cooling (see our news story for details). This company was know for its low-noise and powerful PSU series.

However, this acquisition aroused a lot of questions. And these questions were caused not only by the fact that OCZ Technology and PC Power & Cooling pursue different approaches to PSU development. The thing is that like most other companies, PCP&C doesn’t have any production of its own, but places orders with their partners. Today PCP&C gets the PSUs manufactured by FSP, Seasonic and Win-Tact Electronics. OCZ Technology also has its PSU’s made by third parties, such as FSP. So, the advantages of this acquisition may not seem evident at first glance.

That is why we decided to dig into this matter and ask these questions to the OCZ Technology officials Ryan Petersen – CEO of OCZ Technology Group, Alex Mei – Executive VP & CMO, and Bob Roark – VP of Operations Power Management Division. The interview below will answer numerous questions regarding future OCZ strategy in the PSU market as well as some other exciting topics.

X-bit labs: Thank you very much for the opportunity to talk to you about the big news that has drawn a lot of attention from the computer users and industry members all over the world recently. Could you please introduce yourself and your colleagues to our readers before we start?

Ryan Petersen: First of all thanks to Xbit for the opportunity to talk about the recent acquisition of PC Power and Cooling, and what it means in the future for consumers. We will each be answering questions based on the pertinence to management, product design, and branding. I am the CEO of the OCZ Technology Group, Bob Roark was the President of PC Power & Cooling under CEO Doug Dodson, and is now the VP of OCZ’s Power Management division while Doug transitions his role to CTO. Alex Mei is the Chief Marketing Officer of the entire Group.

Left to right:
Bob Roark – VP of Operations Power Management Division, OCZ Technology Group
Alex Mei – Executive VP & CMO, OCZ Technology Group;
Ryan Petersen – CEO, OCZ Technology Group.

X-bit labs: Why did OCZ decide to get into the power supply business in the first place? OCZ has been very successful on the memory front and as a manufacturer of solutions for enthusiasts could have taken any other direction for horizontal expansion of the product range. Why power supplies?

Ryan Petersen: In regards to entering the PSU market, we saw a need in the power supply space for solutions that had more cutting edge features, and units that could properly scale with the changing power requirements demanded by the latest GPU’s. As with many new OCZ products if we see a need we will invest in the technology to deliver a solution that surpasses the expectations of consumers.

X-bit labs: Why did OCZ Technology choose PCP&C? Why this particular company was of such special interest and value?

Ryan Petersen: We have always respected PC Power & Cooling’s products and technical expertise when it comes to premium power supplies. But having top notch products is just one part of the equation. After talking with Doug and meeting the team at PC Power and Cooling we found a company that shared the same vision regarding uncompromising quality, superior customer service, and an emphasis placed on innovation. Both Doug and myself felt that the two organizations had very similar ideals and cultures, and that together we could even better serve the enthusiast community.

X-bit labs: The acquisition of PCP&C has obviously aroused a lot of questions about OCZ’s upcoming branding strategies. Could you please tell us if OCZ is going to retain both brands or if the new PSU solutions will be from now on coming out under a single/joint brand name?

Alex Mei: A key goal of the acquisition is to improve our total offering both in range and quality to consumers. We are not making any changes to the PC Power and Cooling line of existing products, and actually infusing the R&D department with more resources so that Doug, in his new role of CTO, will be able to focus on the development of next generation solutions. Doug is the CTO of entire power management division, and is also now working on the OCZ lineup of PSUs. In the future both the PC Power and Cooling and the OCZ lineup of PSU’s will both continue and together will address the entire range. The OCZ PSU’s will target mainstream, gamers, modders, entry enthusiasts, and system builders. The PC Power & Cooling solutions are ideal for upgrading Dell systems, enthusiasts, servers, commercial, and mission critical applications.

X-bit labs: How is OCZ going to use its well-established distribution channel for the benefit of the newly acquired PCP&C? How will the PCP&C products sell through OCZ distribution channel?

Alex Mei: OCZ has an existing global distribution channel that makes it possible for consumers to access the latest memory, cooling, and power management solutions worldwide. PC Power and Cooling products will be made available through this channel making it easier for consumers to obtain the latest and greatest products worldwide at time of introduction. Previously customers in Asia and Europe did not have any regional outlets in which to purchase the product, and actually were importing them in single unit quantities from the US.

X-bit labs: Therefore there is another question that a lot of users are asking these days: PCP&C is not selling in Europe. Will this situation change? And from this prospective wouldn’t it have made more sense for OCZ Technology to have chosen a company with the already established European distribution?

Alex Mei: The key vision that we share with PC Power and Cooling is that if we make the best product on the market and back it up with the best support then consumers, wherever they may be, will find the offering attractive. One of the reasons why the acquisition made so much sense was because it was a win-win situation for both the two companies and consumers. PC Power & Cooling makes the best PSU’s in the world, and would benefit from OCZ’s global channel and resources, allowing consumers worldwide better access to the technology. By opening up PC Power & Cooling products to Europe the products are both easier to buy and made more affordable.

Bob Roark: We have existing lines here in San Diego in which we do all of our testing and we even have the ability to customize solutions for very specific customer applications. It is in the facility that all PSU’s are designed and tested, and customization allows us to service commercial customers or configure the ultimate PSU for our customer’s unique requirements.

X-bit labs: What is going to happen to PCP&C PSU warranty? Will OCZ Technology keep fulfilling the warranty obligations on the current PCP&C products?

Bob Roark: All warranties will be honored, and there will be no changes to the policy. The only difference is that there is now a larger customer service network available to our customers both in terms of phone and online support worldwide.

X-bit labs: Will any changes touch upon the personnel of PCP&C after the acquisition? Will there be any lay-offs within the PCP&C or personnel transfers to OCZ Technology?

Ryan Petersen: None whatsoever. We acquired PC Power and Cooling for the company’s human resources as well, and are actually already expanding the team. Doug’s transition to the role of CTO for our power management division gives him authority over all PSU’s, both PCP&C and OCZ lines. Ryan Edwards, who was previously the Marketing Manager for PC Power and Cooling is now a member of OCZ’s Global marketing team and will be based at corporate.

X-bit labs: Are you going to restructure the engineering team working in the power supply division now that you’ve got PCP&C personnel onboard? What changes can we expect?

Ryan Petersen: Now that Doug is our dedicated CTO for the division we are expanding the team with additional engineering personnel based both in San Diego and in Sunnyvale. We have also made investments in more Chroma testers, and are basically giving Doug the freedom and resources to design his dream PSU’s. You can expect an acceleration in the development of all lines, wattages, and even the introduction of new lines.

X-bit labs: My vision is that currently OCZ has two main types of business models: “development and manufacturing” (memory, power supply units are being engineered and manufactured by OCZ or upon OCZ’s request) and “marketing” (graphics cards are being branded by OCZ but engineered and manufactured by a third party). Is the acquisition of PCP&C going to change this situation in any way? Will you continue developing both business models by driving more resources obtained through PCP&C acquisition to the “marketing” type or eliminate one of them now?

Alex Mei: We consider all our products to be “design” oriented so we can push the envelope in terms of innovation. It is only in this way that we can truly provide added value to the consumer. Even with the video cards we bin the memory and the entire GPU to provide more overclocking headroom to our customers. All OCZ products are designed and built to our exacting standards, and the PC Power & Cooling products will be no different.

X-bit labs: How are you going to improve and enlarge your power supply product range now that you have acquired a well-known player like PCP&C? In what direction will the development go and what new technologies can we expect to see in this market in the near future?

Ryan Petersen: We will expand the product range, and are working on a number of key technology areas including higher efficiency, more effective cooling, and even digital regulation. There is equal emphasis placed on quality and innovation.

X-bit labs: Are you expecting the power consumption levels of contemporary computer systems to continue growing further? Are you going to continue setting capacity records for PSUs and offering more powerful products to the market?

Ryan Petersen: While we believe that there is a short term need for greater maximum power that will eventually be replaced by other factors including making the PSU’s far more efficient as well as lowering acoustic noise.

Ryan Petersen: It is something we are indeed working on currently, and with the technical expertise from Doug and his team we will bring a solution to market if we are positive that we can offer a superior solution.

X-bit labs: What about system cases with preinstalled power supplies? Any plans to go in that direction also?

Alex Mei: Ok Anna, we know you have a hidden camera in our office, you know way too much. =) Seriously though, OCZ is all about making the best component products, regardless of what category. In fact if you look at our products at the platform level we are the only company to offer a complete cobranded offering both in the SLi ecosystem and Crossfire certification programs. This would be a natural evolution for OCZ and we are currently working on it.

X-bit labs: OCZ has been always focusing on modular power supply units, while PCP&C doesn’t have a single modular PSU in their product lineup. In fact, they even consider modular technology to be inefficient (http://www.pcpower.com/technology/myths/, #3). Will OCZ continue offering modular power supplies? Which approach to the PSU development will dominate? What engineering team will be in charge? Since Doug Dodson, founder and CEO of PCP&C, is going to be the new OCZ CTO, will it affect the PSU development strategy and engineering approaches?

Ryan Petersen: OCZ will continue to offer modular PSU’s, something that was requested by consumers. At the same time Doug will be continually working on ways to improve the performance of modular solutions, as he is in charge of the engineering of all our power management products. The approach will be to overcome any and all challenges, and provide the best solutions to a wider range of consumers. A modular PSU may not be for everyone, but for those who place a higher value on the ease of use and clean layout offered with modular design we will make sure to offer the best product possible.

X-bit labs : I would like to ask the same question about another technological difference we have always observed between OCZ and PCP&C power supplies. OCZ is using top-mounted 120-mm fans in their power supplies, while PCP&C only uses rear-mounted 80-mm fans considering them a much more efficient solution (http://www.pcpower.com/technology/myths/, #6). What is going to happen now? What engineering approach will win?

Ryan Petersen: The only party that will “win” is the consumer. We will offer both solutions split into the current lines of OCZ and PCP&C. Whether or not a 120-mm ever makes it to the PC Power & Cooling offering will depend on whether or not Doug can find a way to build one that satisfies all his requirements. Until then consumers have a choice between our two uniquely positioned product lines.

X-bit labs: The acquisition of PCP&C Company aroused some concerns that OCZ that has always been known as primarily enthusiast memory manufacturer will now shift its focus to power supply business. Are these concerns justified? Will PSU business become the No.1 priority for OCZ Technology now?

Ryan Petersen : While we are a leader in enthusiast memory we have continually expanded into other product lines. OCZ already had a line of top selling power supplies, and we have also been successful selling coolers as well. We are continually expanding our capabilities as an organization, and the priority is to deliver top notch enthusiast solutions in all our product categories.

X-bit labs: Some memory manufacturers start paying more attention to alternative drives such as solid state drives. What are OCZ’s plans in that respect? PQI has recently announced the world’s largest SSD drive with 256GB capacity (http://www.xbitlabs.com/news/storage/display/20070530081801.html). Any plans to break that record in the near future?

Alex Mei: We are constantly expanding our line of storage solutions, but our emphasis is on performance rather than raw capacity. We will release an ultra high capacity SSD drive only if we can make it the fastest drive on the market. One very interesting product we are working on is our patent pending Firewire flash drive, which offers consumers a significantly higher transfer rate. We just showed working demos last week at Computex Taipei, and are preparing to unveil the final product in the coming quarter.

X-bit labs: Is OCZ going to expand its business to any other market segments for computer enthusiasts, like mainboard business, for instance?

Ryan Petersen: OCZ has always been about making the best products to meet the ever changing needs of our customers. If we feel that we can make a product better and fill a need in the market with a superior solution then we will absolutely move forward. OCZ isn’t just about enthusiast memory, were about enthusiast solutions, so anything is possible. Thank you to Xbit Labs and all your readers for all your support, and stay tuned for some truly revolutionary solutions.

X-bit labs: On behalf of our readers and our team I would like to thank you very much for your time and for the great opportunity to get first-hand answers to our questions. We look forward to hearing more great news from OCZ Technology and seeing more exciting products. Good luck with the new challenges!

Interview: OCZ Reveals New PSU Market Strategy