Proving the Business Case for the Internet of Things

ID Systems wins $7 million asset-management contract with global airline

Iain Morris
November 5, 2014

Tracking specialist ID Systems has signed an asset-management contract with a global airline that is potentially worth more than $7 million.

Under the deal, ID Systems (Woodcliff Lake, NJ, USA) will deploy its AvRamp-branded wireless vehicle management system (VMS) on aircraft ground support equipment and other airport vehicles.

The agreement does not have a fixed term but covers potential system deployments on more than 3,000 vehicles across as many as seven major US airports, according to ID Systems.

Should the airline – whose identity was not disclosed by ID Systems – decide to place purchase orders for all proposed system elements, the deal would be worth more than $7 million to ID Systems.

According to a statement from the company, the initial statement of work is valued at more than $500,000 and will require ID Systems to deploy the VMS at one US airport.

Product shipments are expected to begin before the end of the year.

“This is the second major airline to deploy our AvRamp system, which we believe makes ID Systems the leading provider of wireless VMS technology in the US aviation market,” said Kenneth Ehrman, the chairman and chief executive of ID Systems. “The aviation market represents a largely untapped growth opportunity for us, with hundreds of thousands of vehicles used in airport operations around the world.”

“We are confident we will execute on this new contract with the best practices we are implementing under our ‘IDSY 2.0’ initiative, and we should be in a strong position to capitalize on this multi-million dollar opportunity,” he added.

Ehrman says ID Systems secured its latest contract after a successful pilot deployment earlier in 2014, during which it was able to demonstrate the value of its technology.

“We are providing a cloud-hosted version of AvRamp for the airline, reflecting the rapidly growing trend of implementing VMS as a service,” he said. “This helps reduce the customer’s upfront capital investment, decrease the customer’s IT workload, and make customer support easier and more effective.”

AvRamp is described as the “airport version” of ID Systems’ VMS technology.

The company says it can decrease costs by reducing fuel usage and improving maintenance management, while improving operational efficiency through GPS location tracking and asset utilization analyses.
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