Published March 26, 2009

Technology giants bet on IR windfall

Contracts from IRs could give IT players a billion-dollar boost

By WINSTON CHAI

	Email this article
	Print article
	Feedback

(SINGAPORE) When the chips are down, technology giants are betting big on the IT projects coming their way with Singapore's two integrated resorts (IR).

From supplying computers to servers and complex surveillance systems, the IRs are expected to give a billion-dollar boost to an otherwise depressed local technology market with companies tightening their purse strings to cope with the economic crunch.

In the heated contest to seize this silver lining, US computer giant Dell and Japan's NEC have managed to grab two early slices of the giant pie, but more wins are set to be announced in the coming months.

Dell recently trumped over its archrivals such as Hewlett-Packard (HP) to become the main supplier of servers for Resorts World at Sentosa. The IR, which is set to open its doors in 2010 and features attractions such as Asia's first Universal Studios theme park, has opted to use Dell's range of PowerEdge servers across its sprawling 49-hectare premises.

The first batch of the hardware has already been deployed, with the rest to be installed over the next three years. While the size of this deal was not disclosed, a Dell spokesman said the contract is a 'substantial' win for its local subsidiary.

'The deal with Resorts World at Sentosa is important to Dell as we have extensive experience working with the gaming industries and integrated resorts from the US,' he added.

NEC Asia, on the other hand, landed the deal for installing the admission and ticketing system that will be used to handle the hordes of visitors flowing through the Universal Studios attraction. The local unit of Japan's NEC Corporation outmanoeuvred three other competing bids to win the $4 million contract.

'Commencement and preparation work has already begun and the completed platform is due for a soft launch on the last quarter of 2009,' the firm said.

And other IT heavyweights including HP, IBM as well as Singapore-based NCS, are not letting up in their fight to hit the remaining IR jackpot.

'HP is in discussions to offer our entire portfolio of hardware, software, and services to the IRs,' admitted Tan Yen Ten, vice-president and managing director of HP Singapore.

Besides the two publicly-disclosed deals, market watchers say a host of other contracts, especially for security and access control systems, are likely to have been signed but these are being kept under wraps due to their sensitive nature.

For example, IRs in Las Vegas and Macau use complicated video surveillance technology to keep an eye on the casino floor. These multi-million dollar systems allow security managers to zoom in on specific tables and even match facial characteristics against individuals on the casino's blacklist.

Radio-frequency identification (RFID) is another technology that is commonly used by IRs around the world for customer intelligence as well as fraud detection.

RFID tags are often embedded in chips to allow pit bosses to instantly tally the bets in a particular round to prevent cheats from slipping in an extra chip when they win. The system can also be used by hospitality managers to track customer betting patterns so as to decide on whether a client is entitled to free rooms and other perks.

Casinos are mostly tight-lipped about the suppliers of such systems to prevent crooks from delving into their mechanics in their attempts to beat the house.

While Marina Bay Sands has remained quiet on the tech contracts front for now, the announcements could start streaming in when its internal IT team is fully in place.

BT understands that the IR, which opens later this year, is in the process of recruiting technology positions including IT procurement and contract administration personnel.

In Macau, market reports estimate that the casino industry accounted for nearly half the technology spending in the city in 2007. Based on analyst projections, casinos in the gaming meccas of Macau and Las Vegas spend between US$400,000 and US$3 million annually on technology products and services.