I love to see local entrepreneurs do well, and anyone who reads this column knows that I’ve been a big fan of Box Jelly, the Kakaako-based co-working space, founded by former Chaminade student Tony Stanford and his friend, Rechun Fujihara.
Stanford, never one to sit on his laurels, is now embarking on a second startup focused on providing managed information technology services (for example, Internet, wireless, telephone and even content such as Netflix) to hotels.
The business had never occurred to Stanford until he met the manager of an independent Waikiki hotel at a Box Jelly function. She explained to him over a beer that her hotel’s PBX (telephone system) and network had reached the end of their life cycle. The telecom company servicing the hotel (which also provided content such as cable TV and movies) told her it would cost $100,000 to replace the system.
The problem was, lamented the general manager, that replacing the system didn’t improve it. She would be getting the same outdated phone system and TV content that her guests had been complaining about on TripAdvisor for years.
"People don’t choose a hotel because of the shows they get on their TVs or because of the phones," said the GM. "But if you can improve those factors it could make the difference between getting return business or not."
Stanford assured her that she could do much better. For example, he told her that many hotels in Asia integrate mobile platforms such as apps that turn your smartphone into a key to get in your room.
The idea for a new company that provides modern IT services for hotels was born.
The next day he told her he could not only upgrade her system by putting it in the cloud (thus saving her money and the hassle of operating her own servers in the basement) but also could provide better video content than cable TV by providing Netflix. By having all the content and apps in the cloud, software updates to the system can be handled remotely and she wouldn’t have to worry about maintaining her own servers in house.
He also could offer her state-of-the art technology such as tablets in every hotel room to replace phones and the latitude for guests to order anything from room service to movies or the capability of booking attractions.
A few days later the hotel GM was ready to sign a check for a new system before Stanford had to write even a line of code.
Six months later he is ready to test a beta system in Waikiki.
Stanford says his company is focused on a technology niche that the larger telecom firms can’t or won’t provide. He’s going to concentrate on smaller, independent or boutique hotels that may not have the options the larger chains may have.
He said Hawaii needs to be on the forefront of tourism technology. "It’s absolutely crucial to our economy. We are competing with world-class destinations in Asia who won’t hesitate to spend money on technology that will improve the visitors’ experience."
Stanford is especially excited about making a difference in his native Hawaii. "I have the opportunity to make this work here. If I’m successful here, I can take it anywhere in the world."
I wouldn’t bet against this guy.
Mike Meyer, formerly Internet general manager at Oceanic Time Warner Cable, is now chief information officer at Honolulu Community College. Reach him at mmeyer@hawaii.edu
