Native American VAR Seeks Competitive Edge

Jason Neilitz, CEO of One Prospect Technologies, a Crandon, Wis.-based IT solution provider specializing in network integration, in January sold 100 percent of the company he founded in 2000 to the Potawatomi Business Development Corp., the economic development organization of the Forest County Potawatomi Tribe of Wisconsin.

"Native Americans want to buy Indian," he said. "It opens up tribal government doors to say that we are an IT company that happens to be owned by a Native American nation."

As one of the eight to 10 Native American-owned IT solution providers in the lower 48 states, Neilitz figures that could yield big dividends beyond Wisconsin. He points out that each tribe functions as a self-contained government much like a county or state government. Each tribe most often has a health-services organization, law enforcement, accounting and a host of other tribal government services.

But Native American tribes have a unique relationship with the federal government that makes it difficult for most solution providers to grasp.

"There are 30-plus federally funded departments within tribal government," he said. "As the IT solution provider for the tribe, we have to sit down with department supervisors and find out, as federal programs come out, are they compatible now and will they be compatible in the future?"

One Prospect began as an IT networking specialist and white-box system builder serving commercial SMB accounts. About half of its revenue still comes from commercial customers. One of its accounts was the Potawatomi tribe. "They approached us in 2005 about a partnership," Neilitz said. "We did a lot of work for them and they wanted diversification away from gaming, and technology was one of the big sectors that could generate money from state, federal and commercial business."

One Prospect designs, builds and supports IT networks, including VoIP and wireless applications. It is a Cisco Premier partner as well as a Microsoft Gold partner. The solution provider, with 2006 revenue of $5 million, has branch offices in Rhinelander, Wis., Milwaukee and Oklahoma City.

But the Potawatomi tribe, together with its newly acquired IT solution provider, has plans to expand across the country. Neilitz points out that the tribe wants One Prospect to be an IT showcase for other tribal nations and that the solution provider is already working with tribal governments in Oklahoma and is in talks with others in Arizona, California and Minnesota.

One of the important skills gained through working with and being owned by the Potawatomi is the cultural understanding of how a tribe operates and the federal government rules and regulations they must abide by.

"We speak the language [tribal nations] understand," said Steve Eckley, One Prospect's special operations director. "How Native American government operates and what limitations it has are not well understood in the commercial [IT solution provider] world."

But Neilitz, who gained entre into the Potawatomi community by performing IT infrastructure work, knows that being 100 percent Native American owned is a double-edged sword. The status may get One Prospect in the door, but unless the solution provider excels in designing, building and maintaining IT networks, the benefit will be short lived. "In Indian country, word travels fast; they know who the good ones are and who the bad ones are."

Still, Neilitz bets that 100 percent Potawatomi ownership should launch One Prospect beyond its upper Midwest roots to a broader national audience. And he's projecting that One Prospect's revenue will grow from $5 million in 2006 to $11 million to $15 million in 2007.