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Cloud Technology can Accelerate Sports-tech Growth, But At What Cost?

Keeping up with the sports technology market can feel like trying to match pace with Usain Bolt. Traditional business models have been up-ended by cloud computing which enables organizations to establish and expand at an astounding rate. Manufacturing, banking, retail, healthcare, and education are using software-as-a-service (SaaS) solutions, data analytics and web APIs to create new products and features. The sports technology industry is no different.

Sports-Tech Industry Growth

The sports technology market pressure tests the next wave of consumer technology. Sports are a proving ground for innovative technology applications, platforms, and ideas. Understanding what tech matters and why is further complicated by the 3-fold proliferation of sports tech companies over the last ten years. Enter the Sports Innovation Lab: we track sports technology across five key trends: Quantified Athlete, Smart Venue, Immersive Media, Next-Generation Sponsorship and Esports.

Wait, wait, I’m confused. Why does cloud computing impact the number of sports tech companies?

Total Companies By Trend

Year Over Year % Growth

The Takeaway: This beautiful story of fast growth is not without its graveyards. In 2007, there were 703,834 US companies incorporated in the private sector, of these only 33% still exist today. Surviving in the cloud-centric world means creating a scalable strategy, without skyrocketing bills to Microsoft Azure or Amazon Web Services. Many sports technology companies rely on these services to host vast amounts of data and content. Startup unicorn Dropbox recently announced that it would no longer be using Amazon Web Services for storage. Instead they have brought their data back on premises and saved $75 million in the process. For the next wave of sports technology companies, innovation may be more about cost-efficient content storage than awesome features.

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