Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek

Trending

Filed under: News | Technology News

 

Xirrus enables Las Vegas Sands Casino to Charge WiFi Premium

Jan 26 2014, 10:08am CST | by

1 Updates
Xirrus Lets Las Vegas Sands Charge WiFi Premium
 
 

YouTube Videos Comments

Full Story

Xirrus enables Las Vegas Sands Casino to Charge WiFi Premium

As a hotel guest, I am always annoyed when I am required to pay extra for WiFi. But thanks to WiFi service from a Thousand Oaks, Calif.-based startup, lets a Las Vegas casino charge an even higher price premium to grant convention goers wireless access to the Internet.

And the reason for that price premium is that the startup lets the casino block marketing messages from the competitors of a convention’s primary sponsor.

The casino in question is The Sands Hotel and Convention Center in Las Vegas and the startup is Xirrus — a commercial WiFi provider tapping iPad growth — that I first spoke with back in December 2011.

In June 2012, its then-CEO Dirk Gates replaced himself with Shane Buckley. Serial entrepreneur, Gates, decided that if he wanted Xirrus to grow from $100 million to $1 billion, he should hand over the reins to Buckley.

And now Xirrus is offering customers — such as trade show producers — the ability to turn WiFi from a cost center to a profit center. How so? Imagine you are producing a business technology trade show in Las Vegas sponsored by a big technology company with deep pockets — say, Microsoft.

And imagine that Microsoft wants the people who attend the trade show to receive marketing messages from Microsoft on their smart phones. But let’s say the trade show sponsor wants to block marketing messages from competitors like IBM and Oracle who may not be the lead sponsor for that trade show. That WiFi service is also available to sponsors like Microsoft — at a price.

As Justin Herrman, chief technology officer of The Sands Hotel and Convention Center in Las Vegas explained, “Xirrus has enabled us to deliver a raft of new wireless services for hotel visitors and convention goers. Now, The Sands has made wireless service profitable.”

Xirrus allows The Sands to get a return on its investment in WiFi services. Noted Herrman, “We can get WiFi to pay back in 90 days or in one trade show — for example, in San Francisco, the Moscone Center can accommodate 120,000 visitors. And we can sell advanced connectivity with 60 gigabits/second worth of bandwidth at a price premium. And we can enable conference sponsors to communicate in a tailored fashion to each attendee.”

Xirrus is growing rapidly by delivering such profitable WiFi services and expanding its addressable markets. As Buckley explained, “We have introduced new products that are turning WiFi from a cost to a profit center. Our addressable market has increased four-fold. Our products are simple for customers to evaluate and use and we are growing 35% year over year and our customers include hotels, healthcare providers, carrier and managed service providers.”

To keep up with Xirrus’ growth, its headcount is rising. “We are growing from 150 to 200 employees and we did a $23.5 million Series E round of financing in 2012 and a $10.5 million Series F round in February 2013.”

There is challenging news for Xirrus though. Annual growth in the WiFi market is slowing down — from 41% in the second quarter of 2013 to 26% in 2013′s third quarter, according to IDC.

Moreover, Xirrus faces considerable competition for that slowing growth. For example, Cisco controls 55% of the Wireless Local Area Network deployments in Australia, notes IDC.

However, a new technology, 802.11ac, is an opportunity for Xirrus. But competitors Aruba, HP, Ruckus, Motorola and Aerohive also have the potential ”to change the status quo through more competitive products and more deliberate customer engagement,” according to Tafadzwa Marasha, Networking Analyst at IDC Australia.

The pressure is surely on Buckley and his team to grow faster than the market in 2014 — Xirrus’ tenth year in business. It remains to be seen whether they can lead Xirrus to a successful exit for its patient investors.

Source: Forbes

 

iPad Air Giveaway. Win a free iPad Air.

You Might Also Like

Updates


Sponsored Update


Advertisement


More From the Web

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Comments

blog comments powered by Disqus

Latest stories

Kate Upton on Prettiness and its Discontents
Kate Upton on Prettiness and its Discontents
The supermodel and sex icon, Kate Upton spoke on prettiness and some of its major discontents recently.
 
 
Michelle Rodriguez and Zac Efron hook up in Ibiza
Michelle Rodriguez and Zac Efron hook up in Ibiza
The girl in the Fast & Furious series, Michelle Rodriguez and Zac Efron hooked up with each other in Ibiza. Even Justin Bieber was there for some fun.
 
 
Samsung is launching two new phones this year
Samsung is launching two new phones this year
In a bid to encourage investors, Samsung revealed its plan to release two new phones this year. Will it even matter now?
 
 
Detroit Tigers Acquire David Price in 3-Team Trade
Detroit Tigers Acquire David Price in 3-Team Trade
The Detroit Tigers acquired veteran starter David Price in a three-team trade involving the Seattle Mariners and Tampa Bay Rays on July 31.
 
 
 

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.