Intel enters the digital signage software market...So what?

Intel just announced it is entering the digital signage software market, launching a SaaS (software as a service) platform that will compete with a lot of their clients.  Everyone was expecting this following the announcement that Intel had purchased some intellectual property from Ryarc earlier this year.  So what's the big deal?

Well for one thing, digital signage software publishers now have a new competitor. Up until now, Intel was seen as an ally since the company offered PC hardware, audience measurement solutions and remote control technologies. By launching their own SaaS offering, Intel can potentially compete with everyone else in this space by providing a top to bottom solution.

We now know this is a pure SaaS play priced at the lower end of the scale, which will probably not impact the high-end digital signage market.  Still, the Intel name carries a lot of weight so this announcement is sure to make some people nervous.  These would be the folks who create and sell software solutions that run on Intel's hardware.

Before we jump to any conclusions, let's pause for a moment and reflect on what typically happens when  a large technology company acquires a smaller organisation.

1. Acquisition is announced with great fanfare.
2. Acquired product/company gets integrated into the new organisation.
3. Core members of the original development and management teams leave.
4. Development of the product is suspended or severely curtailed.
5. Product stagnates.  Gets shut down or sold after a few years.

Here are a few notable digital signage software acquisitions that haven't really made a big impact:

• 3M acquired Mercury Online Solutions in 2005 with their FRED digital signage software platform and created 3M Digital Signage.
• Cisco acquired Tivella in 2006 and launched Cisco Digital Signage.
• NCR acquired NetKey in 2009.

What do these 3 acquisitions have in common?  In each case, a well known digital signage software company was purchased by a large corporation whose focus was elsewhere. For 3M, Cisco, NCR and now Intel, digital signage is a side-business. It is not a core activity so there is less tendency to innovate and lead.

This probably explains why digital signage products from these large corporations tend to be more complex and less intuitive than many competing products.  For them, digital signage is one part of a much larger ecosystem that involves networking products, kiosks and other products.

Meanwhile, smaller dedicated software publishers continue to innovate and grow.  Think of all the recent Android product announcements since the beginning of the year.  Digital signage software publishers aren't afraid of reinvesting in their business and continuously improve their products.

So will Intel become a big player in the digital signage space?  Only time will tell but I wouldn't loose too much sleep over it.  The odds are not in Intel's favor.