Ingram Launches Digital Signage Division

When hardware, software and digital sign content are combined, the digital signage market is upwards of $7 billion, according to Kevin Prewett, Vice President, Vendor Management, Ingram Micro U.S.

"You have a multi-billion dollar market out there and the growth is phenomenal both in the market and in the channel. We've seen the market growing at high double digit rates over the last several years and continuing to do that," Prewett said.

Digital signage products also bring resellers and Ingram Micro higher margins than a lot of other hardware and software products. "If you can go sell the full solution, the margins on the VAR side and from the Ingram side can be double what we see day-to-day," Prewett said.

Prewett will head up Ingram's digital signage division which will offer resellers bundled digital signage solutions in addition to training, education, sales and technical support resources.

"We feel like we've put together an offering that allows our resellers to do that, our sales team to do that, and it's good for everyone," he said. "The fact that we do have a dedicated team to this today gives Ingram some credibility. They're really serious about this. "

The Santa Ana, Calif.-based distributor will also offer VARs assistance with creating and developing content for digital signage solutions. Vendors represented in the division include Samsung, NEC, Sony Electronics, ViewSonic, Planar, Cisco, Peerless, AOpen, AVI and Minicom.

Also, national digital signage solution provider United Service Source will be available to assist VARs with digital signage deployments through the Ingram Micro Service Network.

"Part of what we're trying to bring in are customers who are interested but aren't quite sure yet. What USSI does, they've been doing for many years. They can go in and help those VARs represent themselves across the country," said Prewett. USSI will work with VARs in the U.S. initially but the program may expand internationally.

Ryan Yu, president, Daly Computers, a Clarksburg, Md.-based solution provider, said the division is a good move for the distributor.

"I think that digital signage is an up and coming space and I think it's good. I think it's a great idea. We've been at it for the past year now and it's been a very good business for us," Yu said.

Lynn Hudgens, CEO of Turning Point Solutions Group, Pineville, La., agrees.

"We've done some and actually I've gone and given a couple of presentations with Ingram to companies like mine saying you really ought to look at this market. The thing to me is that digital signage, as it stands today, works very well with the right products off of an IP network infrastructure. There's so much you can do not only locally but across a WAN. If you add it to your bag of tricks or the things that you're offering to your customers, it's just a natural fit to me," Hudgens said.

Solution providers that create Web sites and Internet content for their clients should investigate getting into digital signage, he said.

"If you're out there creating this content you're already in that environment - any place that people are driving by, standing in line or sitting and waiting, those are captive audiences that you can't get any other way. If you want an advertising environment that beats the dickens out of television cost, if you're a doctor why not catch that patient while they're in your waiting room?"