The sports arena is challenging but rewarding and it's where
broadcasters and participants demand the benefits of IT. VARs that
can prove their credibility are in a strong position to win the
best contracts.
Although traditionally not tending to employ a massive amount of IT
applications, the sports industry is generally believed to hold
interesting and unusual opportunities for VARs and solution
providers that can go the extra mile in differentiating them-selves
with technologies that enhance viewer and participant experience.
The whole sports arena has benefited hugely from evolving
technology in the last two years, especially with regards to the
Internet where spectators are now able to view clips and analysis
at their leisure.
However, the number of actual IT buyers in the sports market is
relatively small compared to, say... retail or transport. That
said, sport now holds the largest segment of entertainment
programming in television, which in itself is a pretty substantial
section of the market.
Whet the appetite
The general rule for solution
providers to bear in mind is that the broadcast networks with which
the sporting organisations undertake their dealings (when looking
at the issue from the televised side of things) are always seeking
to enhance viewer experience.
Robert Nagle is director of software development at specialist
database supplier Intersystems. The company supplies object-based
database management systems to specialist application development
partners and VARs through the channel to several sporting
clients.
"By aiming to improve viewer and participant experience, there is a
lot of opportunity for the solution provider able to whet the
appetite of the broadcaster who holds the broadcast rights," he
says.
It may be these broadcast rights, however, that prove to be the
first stumbling block for a solution provider wishing to get into
the sports sector, and in this sense says Nagle, selling into the
market is often a multi-party event.
"Working through the contract rights that broadcasters may already
have in place with existing technology providers could prove the
hardest part to starting negotiations," he argues. "There may be
old ways of working to break through and new grounds to establish,
but if the solution provider has a strong USP which can offer the
client an enhanced viewer experience, it is certainly in with a
chance."
No real barriers
The good thing, Nagle says, is that
preferred supplier arrangements are not often the ideal way of
working. "It is the provider with the best product or service to
offer that gets in," he claims.
Integrating technologies already employed is also an important
aspect when working with sporting clients.
This business is known for its long procurement times, which can
typically run anywhere between six months and a year. For this
reason, it is important that solution providers are aware that
existing technologies need to be continued up until (or sometimes
overlap) new ones coming into force.
Nagle points to prototyping applications early on in the
procurement process as "a good way of generating enthusiasm among
clients who may be dependent on strict cash flows. Start the whole
process as early on as possible".
Ian Gibb, CAE systems manager at Basildon-based MsX International,
agrees with Nagle that there are no major barriers to prospective
solution providers wishing to get into the sports market, providing
they can prove their credibility and be persistent in cracking that
first deal. "Much of the business of providing IT to sporting
clients, like other industries, is done on prior recommendation,"
he emphasises.
MsX is a service provider for computing hardware and software
resources and counts the Jaguar Formula One team among its
clientele. Gibb is adamant there are ample reselling opportunities
in this high-end 'sexy' section of the motorsport market, where all
the Formula One teams are known to have high spending IT
departments.
Some vendors have been known to pay £10 million just to put their
badge on the wing mirrors of the vehicles, reveals Gibb, but from
the motorsport client's point of view, the emphasis is on producing
ever more competitive cars. "In this sense, there are always
opportunities for resellers to go in with innovative solutions," he
claims.
Premier target
IT sales to football teams also holds
substantial VAR opportunities, with teams increasingly being run
primarily as commercial businesses rather than simple sporting
organisations.
Keith Quinn, managing director of solution provider Essential
Computing, agrees. Quinn, whose company provides e-mail messaging
services to several clients in the sports market, says he is
gradually seeing an increase in sporting clients becoming more
technologically minded.
Essential is currently in talks with several premier league
football teams regarding the management of their fan bases. "Web
sites and e-mail communication is an area for which we are
currently seeing an increase in demand from football clubs," says
Quinn.
"Football has really woken up to the commercial power it has with
its fan base over the last few years. To this end, clubs are
realising the importance of large IT infrastructures and the
revenues they can help to drive in. Local football teams are
probably a great starting point for solution providers wishing to
get into the sports market."
On the ball
Doug Gardiner is managing director of
Avaya's World Cup programme. As a sponsor for the Cup this year,
the firm is using channel partners to build large voice and data
networks in Japan and Korea.
Gardiner concurs that sport is a booming market for solution
providers and also believes local teams may hold more technology
opportunities than many realise.
"The opportunities with local football teams are pretty good
really, as most have only got the most basic of infrastructure in
place at their stadiums," he argues. "If one looks at the kind of
wireless technologies we are currently implementing for FIFA at
this year's World Cup, you realise there are many similar types of
applications that could be implemented on a smaller scale to
resellers' local teams."
High-profile market
Doug suggests convergence is a
particular area of interest for local clubs, but that other
technologies supporting the monitoring of kit, season ticket
registration and fan club Web sites are also in demand.
"The great thing is that sport in general is so high-profile to the
general public and is therefore great for expanding a solution
provider's reach and showcasing solutions," he says. "Many of the
decision makers involved in football are high-level executive
clients or business partners. To this end, there is always plenty
of scope for word-of-mouth references."
www.avaya.comwww.e-msxicompute.comwww.essential.co.ukwww.fifa.comwww.intersystems.com