 | Tuesday, March 11, 2008
Issue 795 | | Will Smith, Editor |  |
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Editor's Note: Today's top story is the briefing issued this weekend by AMR Research analyst John Fontanella, who asserts that RFID adoption has quietly crossed a key threshold many industry observers have been anticipating for the last couple years: the tipping point.
RFID software and solutions provider OATSystems, one of the companies cited in today's article that was initially associated with Wal-Mart compliance, has announced a very strong fourth quarter, including record license revenue and increased utilization and billing rates for its services. The company believes that the good news validates its strategic shift to packaged solutions, a shift which kicked off early last year.
RFID hardware manufacturer Sirit announced its collaboration with Microsoft to bring native NFC and contactless functionality to the software giant's Windows Mobile operating system, functionality that could help accelerate adoption of NFC.
Lastly, note the two new classified listings below for AWA's Product Authentication and Brand Security Conferences. They are taking place in Chicago on September 11th and 12th, and in Hong Kong on December 4th and 5th. |
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| RFID Tags & Labels | | - Ferroxtag HF tags: Smart on Metal! (site) | | | Products & Services | | - RFID at Work, University of Texas at San Antonio, Mar 27-28 (site) | | - Employees steal over $1 billion per week from employers (site) | | | Employment | | - RFID Recruiters - 100% Focused on RFID Recruiting (site) | | | Upcoming Events | - AWA PABS08 N. America Conference, Sept 11-12, Chicago, IL (site)  | | - AWA PABS08 Asia Conference, Dec 4-5 - Hong Kong, China (site) | | - European Supply Chain & Logistics, 13-15 May, Germany (site) | | - RFID World Asia 2008, 8 to 11 April, Suntec Singapore (site) | | - SCAN & RFID CHINA 2008, June 19-21, Guangzhou, China (site) | | | Research & Whitepapers | | - RFID Marketing Strategies Report (site) | |
AMR Research: RFID Adoption's Tipping Point is Here
AMR Research analyst John Fontanella issued a briefing this past weekend proclaiming that RFID adoption has quietly crossed a threshold that many industry observers have been impatiently anticipating for the last few years: the tipping point. RFID Update spoke with Fontanella about his thesis, which is freely available until March 14th at RFID Reached Its Tipping Point -- And No One Noticed.
Fundamentally, Fontanella argues that because projected RFID adoption from the Wal-Mart mandate never materialized, vendors were forced to explore other possibilities for the technology. "When the industry realized that the enormous demand from Wal-Mart was not going to be the case, the idea of innovation kicked in," explained Fontanella. "Vendors said to themselves, 'Let's see what problems in the enterprise we can solve with this technology.' That sent vendors looking for opportunities."
The result? A fertile, nascent RFID ecosystem that will yield ever-growing adoption across a broad array of applications and verticals. Fontanella observed just this phenomenon at the Microsoft RFID Solution Days held late last month: "Listening to the audience of almost 300 technology vendors and end users discuss their projects, products, and services, it became apparent the industry has weaned itself away from its dependency on Wal-Mart and grew in other directions.
"For RFID technology adoption, this is its tipping point."
As disappointing -- and in some cases damaging -- as the Wal-Mart mandate was to the industry, it could ultimately be for the best. Now RFID vendors can offer myriad solutions to a wide variety of clients. The alternative would have been just one application (compliance), dependent on only one or a handful of companies (Wal-Mart, Target, Best Buy, etc.). "As a vendor, I'd much rather be looking at a million different applications for the technology, than looking at just one Wal-Mart," Fontanella said. "I think the market today is much broader, much healthier, and much more diversified."
Anecdotal evidence of this abounds, as RFID Update readers can attest. Companies like Alien, Avery Dennison, ODIN technologies, Xterprise, OATSystems, and ThingMagic were closely associated with Wal-Mart compliance just a few short years ago. Now, those same companies regularly announce deployments or applications that have nothing to do with the retail supply chain.
That said, retail supply chain adoption is hardly dead. On the contrary, it appears to be witnessing a resurgence, with retailers like METRO Group and Sam's Club mandating RFID tagging, and adding levies for non-compliance. "None of this is to say that the retail supply chain isn't viable for RFID," said Fontanella. "There is a lot of supply chain activity around the world."
Note that Fontanella's optimism does not mean that the industry can shift into cruise control. Even though the worst is likely behind them, vendors should seek to grow and accelerate the newfound momentum. "This isn't a time when people can lay back and be satisfied with what they've gained," Fontanella said. "We're still in the very early stages of the adoption curve." Most vendors he has communicated with acknowledge this, and don't intend to rest on their laurels. "Everyone is still hustling, absolutely."
So now that the tipping point has been reached, does Fontanella foresee a dramatic growth in spending and adoption in 2008, 2009, and beyond? No; at least not "hockey stick" growth. "The tipping point is really the realization of the direction that adoption would grow and mature," he explained. "We're going to see steady growth going forward, and a technology adoption that starts to reach into every corner of the enterprise."
| Read the briefing from AMR Research (until March 14th) |
Forward this to a colleague | Request reprints: reprints at rfidupdate dot com |
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| RFID Tags & Labels | Ferroxtag HF tags: Smart on Metal!
Ferroxtag is a new family of HF RFID tags suitable for operation on metallic surfaces. Ferroxtag's special ferrite antenna was developed using Ferroxcube's years of experience in ferrite technology. The high performance antenna means longer read range with a smaller tag. Visit www.ferroxtag.com | | | Products & Services | RFID at Work, University of Texas at San Antonio, Mar 27-28
The Manufacturing Systems and Automation Laboratory at the University of Texas at San Antonio offers a 2-day, interactive, hands-on workshop with Omnitrol Networks and Motorola. In addition to reviewing technologies, case studies, and deployment challenges, attendees will experience hands-on applications, ranging from dock doors to smart shelves to hand-held readers. | Employees steal over $1 billion per week from employers
the American Management Association reports. 95% of businesses are victimized by employee theft. Managers are reluctant to ask questions, because trusted employees may feel offended, leaving business owners in a difficult situation. What can you do? Nox: Intelligent Perimeter Defense from Simply RFID provides advanced security and protection for business assets. | | | Employment | 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, visit www.rfidrecruiters.com | | | Upcoming Events | AWA PABS08 N. America Conference, Sept 11-12, Chicago, IL
AWA is organizing the Product Authentication & Brand Security Conference 2008 on September 11-12 in Chicago, IL. The event includes presentations and panel discussions with brand owners, legal authorities, associations, converters and suppliers; also networking sessions, a supplier forum, a social program and more. Find more on the program here. | AWA PABS08 Asia Conference, Dec 4-5 - Hong Kong, China
AWA presents the Asian Product Authentication & Brand Security Conference 2008, to be held on 4 & 5 December in Hong Kong, China. PABS08 Asia focuses on the threats specific to the Asia Pacific region, various elements of IP Theft, and leading-edge solutions. Find more on the program here. | European Supply Chain & Logistics, 13-15 May, Germany
Bringing together Europe's leading providers of supply chain management to evaluate best practices and to move the supply chain agenda into the boardroom. Also, featuring the AMR Research Strategy Session: What makes a supply chain world class in today's global market? More information here: www.supplychain.eu.com | RFID World Asia 2008, 8 to 11 April, Suntec Singapore
RFID World Asia 2008 is THE event for finding out the transforming power of RFID for your business and its future. Sign up now for RFID Asia Summit 2008, targeted at senior-level executives; to understand and reap the benefits of this new business tool. For more information go to www.terrapinn.com/2008/rfid | SCAN & RFID CHINA 2008, June 19-21, Guangzhou, China
As one of the earliest, most specialized and authoritative exhibitions in China, approved and supported directly from State Ministry, the 8th SCAN & RFID CHINA 2008 will present you the impressive up-dated development and market of RFID technology in rising China. To know more, please go to www.scan-china.com. | | | Research & Whitepapers | RFID Marketing Strategies Report
Thirty-nine pages of original research on RFID audience perceptions, including 30+ figures of tactics, content & messaging, and recommendations to guide marketing strategy. Also, Top-10 RFID company rankings based on 550+ survey respondents. View the executive summary free, with Top-3 sample rankings. Only $495 Individual License or $795 Corporate License. Available now |
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