The POS Industry - Not The Same Old Story

Some technologies just take longer to catch on than others. Eight years ago when I joined Business Solutions, I interviewed a point of sale (POS) vendor who predicted that restaurant waitresses would soon use wireless pen tablets to take orders from tables. Well, I haven't been to many restaurants using that technology lately - have you? But, it may not be long before we do. The POS industry is poised to undergo some significant changes in the next few years. And, POS resellers, VARs, and integrators better be prepared to adapt their businesses to these emerging technologies if they want to survive - and thrive in the future.

Wireless Price Points Ready For POS Market
Wireless technology is presently the buzz in every industry. It's undeniable that we're all becoming oriented toward wireless with our cell phones and personal digital assistants. And, businesses are following suit and examining how wireless technology can improve their operations (e.g. communications for remote sales force or between different buildings).

This increased awareness of wireless paired with lower product prices are leading to greater adoption of this technology. In fact, Cahners In-Stat Group predicts robust volume shipments for wireless LAN (local area network) technologies such as 802.11b and the new 802.11a. By 2005, the total WLAN chipset market is expected to exceed $1.2 billion. In-Stat says that the evolution of wireless technology continues to push down chip prices and make products available to many applications.

Business Solutions examines how this popular technology is affecting the POS industry on p. 37. In this Understanding Technology article, vendors like Kyrus, MIST, and TouchStar Technologies Wireless discuss the new wireless applications in retail and hospitality and how the channel can capitalize on these opportunities. And they aren't the only vendors seeking VAR, reseller, and integrator partners for their wireless solutions. I recently encountered Digi International and Agere Systems (formerly the Microelectronics Group of Lucent Technologies) at VARVision, an event designed to connect technology vendors with potential channel partners (May 21-23 in Puerto Rico). Both companies are actively recruiting VARs.

POS And Application Hosting: A Good Pair
ASPs have not fared as well as wireless companies. Application service providers (ASPs) have been one of the most overhyped subjects in technology since smart cards. Yet despite the fallout of some ASP companies, there are still clear advantages to hosting software applications - especially in the POS industry. With application hosting, chains of restaurants or retail stores don't need a lot of hardware infrastructure or to go on-site to handle software upgrades, maintenance, or service issues. This issue's cover feature profiles West Coast Retail Systems (WCRS), a retail VAR who recently added ASP offerings (p. 16). According to Randy Roe, the company's director of sales, WCRS added the ASP offering to become a more complete solution provider. This move has already opened the door for WCRS to larger retail chains.

Sure, wireless and ASP aren't the first significant technologies to emerge in the POS industry - nor will they be the last. However, they are gaining popularity in the public mind share. So, it may not be long before your customers start asking about these products. How do you plan to respond?