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DisplaySearch Conference: Government stimulus not ready for digital signage yet
Money for funding IT projects may be several years away, digital signage distributors say in presentation.
September 1, 2009
Leading up to the DisplaySearch Digital Signage Conference, much attention was given to the discussion about how the government stimulus act could benefit digital signage. The truth came out today at the conference, but wasn't as rosy as some might have expected.
Eddie Franklin of Synnex Digital Signage revealed in a presentation that although stimulus money is being spent, very little of it is being allocated to IT, and therefore even less is reaching digital signage projects.
PHOTO GALLERY:DisplaySearch Digital Signage Conference, San Jose
In fact, he said that as of the Aug. 21, there was $208 billion obligated for the government stimulus, and that it "is spurring the economy and doing what it is designed to do." But, "if you're chasing stimulus, you're chasing a ghost."
Much of this is due to the fact that there are a lot of hands out waiting for this money. Franklin said there are more than 80,000 state and local agencies are eligible for American Recovery and Reinvestment Act (ARRA) funding, as well as about 100,000 eligible education entities.
And those agencies aren't planning on immediately using the money for high-end communication technology like digital signage, at least not now.
"I think ultimately in 2010-11 you'll see some of that stuff, but right now, most government agencies are just trying to figure out how to use the State Stabilization Clause to do things such as pay salaries, upgrade school buses, etc.," Franklin said.
He reiterated, "If you're waiting for stimulus dollars to boost your business or give your solution some kind of momentum, you're looking in the wrong spot."
Being in the digital signage distribution business, Franklin's ensuing presentation was prepping resellers on how to position themselves to be prepared for when the money does come. His main point was to develop a plan to target customers that could be eligible for stimulus money, such as educational institutions and public transportation companies.
Keven Yue of Ingram Micro, also a digital signage distributor, agreed. "Keep an eye on the stimulus, but don't lean on it," he said.
Paul Semenza, senior vice president, analyst services, DisplaySearch, said he thinks the digital signage projects will come as building projects get more funding.
"It's fanciful to hope that the government is going to drop money on us," he said. "But it is logical to invest in technology along with infrastructure of new buildings."
State of the Art Digital SignageGovernmentTradeshowsIngram Micro ProAV/Digital Signage Business Unit
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