Magazine Article | April 1, 2001

Let's See Some Identification

From driver's licenses to network access, the need for ID cards is growing at record rates...and that means burgeoning sales for VARs offering card printing technology.

Business Solutions, April 2001

Fueled by the growing smart card market, as well as the need for security in today's business environment, ID card printer manufacturers are optimistic about future sales. ID cards are certainly not new to VARs. However, the business opportunities offered by this technology are not only new but exciting as well.

The Security Market
As new technologies develop, the market for security products grows. An obvious example is the Internet. Consumers making purchases on the Internet want to make sure their personal and credit card information is secure. Another example is network storage. Most businesses today store important company information in computer network servers. Consequently, these businesses need a system for securing access to network files. ID cards play an important role in these security issues.

Atlantek Inc. (Wakefield, RI) President Harry Scofield believes the growing need for security provides the best sales opportunities for VARs and integrators offering card printing technology. "Card printers can be divided into two sectors: specialty and commodity," said Scofield. "The specialty sector is well-suited for resellers because VARs can create solutions for security needs. Simply moving boxes (as in the commodity market) is not profitable. We look for channel partners that offer integration expertise."

Scofield said vertical markets hold the greatest sales opportunities for VARs. He cited markets such as correctional institutions, police stations, colleges, airports, government agencies, and healthcare facilities as likely candidates for ID card solutions. Security solutions will incorporate a number of technologies other than card printing, and that means even more profitability for VARs. These technologies include proximity cards, smart cards, mag stripe cards, readers for the various technologies, biometric ID, and of course, specialized software to consolidate security and time and attendance systems to companies' ERP (enterprise resource planning) systems.

The Emerging Smart Card Market
Jerry Johnson is president/CEO of Datacard Group (Minnetonka, MN). Johnson told me the smart card market is finally showing signs of major growth in the U.S. market. And that means new business for VARs offering ID card printer technology and services. "The smart card industry lacked the infrastructure needed for major growth," said Johnson. "Datacard will be the first U.S. company to provide a server and lifetime card management system for smart cards. Endorsed by Global Platform and the Smart Card Alliance, this infrastructure will promote industry growth. When swiped, mag stripe cards are processed through central servers that connect to banks and other financial institutions and businesses. Our server will provide this same type of infrastructure for smart cards.

"By tapping into our system, VARs can reduce their integration costs. We will also provide card management services for the lifetime of the cards. Datacard can help with card issuance, reprogramming new software on the cards, and card replacement. With our help, resellers can tailor systems to meet their customers' needs."

The Whole Story
Many great things are happening in the smart card and ID card printing markets. It would be impossible for me to touch on all of them within the confines of a one-page article. I recommend you contact the major vendors in the card printing market. They will be more than willing to tell you the whole story about what is happening in the ID card industry. This is a technology that can easily help add to your bottom line, and one that will be worth checking into.

Questions about this article? E-mail the author at Editor@corrypub.com.