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ABI Warns of RFID Shakeout
Article courtesy of Frontline RFID
July 22, 2005 -- Tags and readers are often thought of as the "business end" of RFID-where product data is stored and collected. But in reality, the business end of RFID is deep inside the enterprise. The raw data is of little value until put to use in an organization's operational machinery.
Increasingly, attention is turning to the software that enables RFID data use within the enterprise. New initiatives are flying thick and fast, says ABI Research.
ABI believes that the RFID space is primed for a shakeout in the coming six to nine months. Researchers expect rollups, acquisitions, and consolidation, as the need for more focused RFID-related software and applications grows.
The expected changes are described in the latest release of the company's RFID Research Service, which provides updates on the RFID market.
According to Erik Michielsen, ABI Research's director for RFID and ubiquitous networks, movement into this software space comes from several directions.
"SAP (with its Auto ID Infrastructure, part of NetWeaver) is pushing down from the enterprise application space and picking up functions traditionally done by OATSystems, Acsis, Connecterra, Sun, and Globeranger," says Michielsen.
In turn, some of these companies are broadening their focus beyond RFID middleware and into data analytics, business intelligence, and automation networking. "OATSystems is a good example," he notes. "OAT is pushing up and becoming competitive with some NetWeaver functionality; and it is joined in the business intelligence space by T3Ci."
Sun, Connecterra, Oracle and Microsoft are all moving into this field according to their respective strengths.
Others, such as Manhattan Associates and Siemens, continue to develop RFID middleware in house, but Michielsen questions the need for closed-system or customized solutions between the reader and the enterprise application integration layer. "I think they would be better off partnering and focusing resulting free energy on services and higher end software," he said.