 | Thursday, March 10, 2005 Issue 78 | | Will Smith, Editor |  |
| EPC Developers Conference, April 10 - Chicago, IL - Register Now! |  | | For leaders in RFID and EPC, featuring tracks for business and technical professionals. |
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| Upcoming RFID Events | | - RFID4U.com - RFID Training Classes | | - Chemical Week's RFID Pharmaceutical Focus, Mar 30-31, Phila, PA | | - EPC Developers Conference – April 10 – Chicago, IL | | - Pharma Supply Chain Summit, June 6-8, 2005, Philadelphia, PA | | - RFID World Asia 2005, 27 - 29 April, Suntec Singapore |  | | RFID Research and Knowledge | | - RFID Knowledgebase - 10% Off for RFID Update Readers | | - Have RFID questions? Ask the RFID Talk experts. |  | | Employment in RFID | | - RFID Talent – Operations, Business Development | | - RFID Recruiters - 100% Focused on RFID Recruiting |  |
 Microsoft Middleware Slated for Early Next Year
 Microsoft is targeting early 2006 for the release of its RFID Service Platform, a middleware solution it has had planned for over a year. The application, designed to run on dual-processor machines, is being built on the .Net development platform with a tie-in to the company's SQL Server flagship database product for data storage. Acknowledging the widely-held view that RFID solutions remain too expensive for most enterprises to implement profitably, Microsoft plans to price the RFID Service Platform lower than competing middleware solutions. The application will be available both as a stand-alone product and integrated in next year's versions of Microsoft's three leading ERP packages: Axapta, Navision, and Great Plains.
Early 2006 might seem like a very late release for a first-version middleware solution, especially given the fact that "middleware" is already becoming an overly-general term as companies working at this layer of the RFID ecosystem begin to distinguish betweeen edgeware and data processing applications. But remember: this is Microsoft we're talking about, whose wildly successful modus operandi has historically been arriving late to the party but dominating by the end of the evening (think graphical user interfaces, web browsers, spreadsheets, word processing, etc.). Also keep in mind that RFID is just getting started. It is easy for those of us involved on a daily basis to lose site of just how nascent this space is. There is plenty of time for the current leaders to eventually lose ground and for those not yet playing, like Microsoft, to get in the game and still win big.


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 Prediction: ISO More Important Than GEN 2
 Since EPCglobal's ratification of the GEN 2 standard at the end of last year, the industry has been wondering if the "royalty-free" designation might be misleading. Technically, the standard certainly is royalty-free, but Intermec, the Everett, Washington-based RFID tag and hardware manufacturer and owner of an enviable portfolio of RFID-related patents, claims that its intellectual property will be required for any realistically useful RFID solution.
This piece on Frontline Solutions concurs with that opinion, and it contends that it is actually the International Standards Organization's ratification of a UHF passive air interface standard that will be the substantive step in realizing a base standard upon which truly widespread RFID adoption can take root and flourish. By offering considerably more functionality than the relatively bare-bones GEN 2, ISO 18000-6c will ensure that compliant systems are full-featured enough to be commercially viable.
Following this logic, author Thomas Polizzi strongly encourages all companies planning to purchase RFID solutions to add the following clause to their RFPs:
The equipment proposed must be compliant with the ISO 18000-6c draft standard version as of September 2005, and the selected vendor must willingly commit to upgrade such equipment to incorporate any changes reflected in the ratified form of the standard.
The question of intellectual property and royalties with respect to GEN 2 is perhaps the leading issue confronting the RFID space right now. I'd like to hear your thoughts on what role the standard will ultimately play and how Intermec's IP claims could affect RFID deployments.


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 RFID Misinformation Propagates
 This article that appeared on Yahoo! News paints a hypothetical image of a nosy technology enthusiast inconspicuously sitting at an outdoor cafe with his RFID reader-equipped laptop scanning the personal information of unwitting passers-by. He identifies a group of truant youngsters and the school, room number, and class from which they are absent; a tourist family and where they're from, where they've been, and their names and ages; and finally, a woman and the contents and prices of her shopping bags. Basically, it's the standard hyperbole written and widely believed about RFID that continues to thrive in the absence of meaningful education and communication from our industry. So long as there exists this vacuum of accurate knowledge about RFID capabilities and potential uses, such misinformation will persist and RFID's name will suffer further smearing and arouse increased suspicion. Long term, it can only serve to stunt widespread RFID adoption and hurt the industry.
Such deafening silence begs the question of whether the industry isn't reacting because such doomsday visions actually have some truth to them. Until RFID purveyors and implementers start responding by educating their consumers and being more forthcoming about their aims with respect to the technology, the general public can't be blamed for their resistance to its adoption.
One glaring exception that deserves mention is the admirable effort by U.K. retailer Marks & Spencer, whose recently planned expansion of item-level tagging to 44 more of its locations includes a comprehensive strategy to address privacy concerns. Take notes - every retailer should be so proactive.


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 SAP and Intermec Partner to Woo SMBs
 Enterprise computing giant SAP and RFID leader Intermec have joined forces to get smaller businesses interested in RFID. The idea is for SMBs to have the option to scale up to a full-blown implementation following a two-step path. The first step comes in the form of Intermec's starter kit that includes basic RFID hardware and a software interface to SAP's Business One, the company's business management software tailored specifically to the needs of SMBs. The second step would be the "expansion kit," including an Intermec label printer which could print both bar codes and RFID labels. According to Intermec's industry marketing director Bob Eckles, small businesses still not using any tracking technology might be better served by starting with bar codes and later graduating to RFID. Interestingly, this stands in stark contrast to Microsoft's position: the company's RFID program manager recently told CNET that RFID represents an opportunity for SMBs unequipped with bar code technology "to leapfrog the bar code era."

| See this story from Line56.com |

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 3 RFID Pitfalls to Avoid
 You already know the central problem facing widespread RFID: cost. Everyone agrees that it is a revolutionary technology; they just don't agree at what price point the revolution pays for itself. For those considering an RFID deployment, this article considers three "common mistakes" made by those who came before you.
The first is believing the hype. RFID presents magical opportunities to control and monitor business operations, but it still must be weighed against the on-the-ground needs of each particular organization. Not all companies need the magic that RFID professes to offer. Some could do with simpler and cheaper technologies.
The second commonly-made mistake takes the flipside to this thinking: if you find your company beholden to a mandate, approaching the RFID deployment grudgingly and conservatively will virtually guarantee that your organization doesn't realize the technology's benefits. Since you're going to have to implement RFID anyway, seize the opportunity to do so intelligently and creatively. (This advice has been repeated constantly by Wal-Mart CIO Linda Dillman, including as recently as at last week's RFID World keynote address.)
Finally, many consider RFID alone, without stepping back and questioning how complementary technologies might also be used. RFID doesn't exist in a technological vacuum; adding GPS and sensor networks to the mix might better achieve supply chain goals than an RFID-only deployment.
Understanding and accepting that RFID will eventually change the way business is done is the important first step. Only then can you avail yourself of the opportunity for competitive advantage by coming up with the best ways in which the technology can -- and can't -- serve and transform your business for the better.


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| Upcoming RFID Events | RFID4U.com - RFID Training Classes RFID4U offers training all over world - both e-Learning and instructor-led courses. The next one day course - RFID Made Easy - is March 17th in Sunnyvale, CA and March 23rd in Phoenix, AZ. Over 350 individuals already trained. Open registration and 10% discount for RFID Update readers. See more, Click Here! | Chemical Week's RFID Pharmaceutical Focus, Mar 30-31, Phila, PA RFID Pharmaceutical Focus is your opportunity to learn from and network with peers. Gain knowledge on incorporating RFID into your drug distribution with minimum cost, maximum increase in efficiency, and cost savings throughout your supply chain. For more information or to register, visit www.chemconference.com or call 212-621-4978. Mention code: PME1 | EPC Developers Conference – April 10 – Chicago, IL An Evolution in the Making. Unlocking the Next-Generation Supply Chain with EPC. A conference for leaders capitalizing on RFID and EPC technologies, featuring breakout tracks for business and technical professionals and presentations from IDEO and EPCglobal. Register Now. | Pharma Supply Chain Summit, June 6-8, 2005, Philadelphia, PA The Only Supply Chain Event to Focus on Integrity, Efficiency & Security Progressing from Theory to Implementation. Increase the efficiency of your inventory management, avoid redundancy and maximize material velocity to increase productivity. Learn from retail pharmacy chains, RFID case studies, 65 industry experts and networking opportunities. Email register@iirusa.com, call 888.670.8200, or visit: www.traxsummit.com | RFID World Asia 2005, 27 - 29 April, Suntec Singapore Terrapinn's 2nd annual RFID World Asia 2005, taking place 27-29 April in Singapore, is established as THE event in the region to feature case studies from leading end users who are implementing RFID. If you want to know how RFID will impact your bottom line, Register Now! |  | | RFID Research and Knowledge | RFID Knowledgebase - 10% Off for RFID Update Readers Don't do anything until you have consulted the world's largest database of RFID in action. More than 1250 case studies covering over 1400 companies. Save time and money, improve forecasts, convince doubters, help you raise investment. Sign up using the promo code "rfidupdate" to receive a 10% discount off your annual subscription. | Have RFID questions? Ask the RFID Talk experts. A proud partner of RFID Update, RFID Talk is the industry's leading discussion forum. Join thousands of users at RFID Talk and stay on the forefront of technology, deployment, standards, specifications and more. Free, quick registration - Sign Up Now! |  | | Employment in RFID | RFID Talent – Operations, Business Development You face RFID market entry decisions -- when, how, and what technology –- that should be entrusted to a proven industry leader. This GM/evangelist who positioned his company for envious ROI is making a discreet career change. Is your challenge attractive enough for him? RFID Careers – Jack Bourque at jjb@wirelesscareers.com or 860-738-5035 ex:23 | RFID Recruiters - 100% Focused on RFID Recruiting Whether your company is looking for the best RFID talent or you have the best RFID talent and are looking for the best RFID employer, RFID Recruiters offers the most focused approach to your objective. To learn how the RFID industry and the RFID job market are evolving, click here! |
About RFID Update - Launched in early 2004 to provide timely analysis of RFID industry news, RFID Update publishes editorial briefings every Monday and Thursday for the growing ranks of top level executives involved in the deployment of RFID projects. Each issue distills the impact of global RFID developments by providing an analytical summary of the news and issues most pertinent to successful RFID implementations.
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