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RFID developments through Friday, October 1st
1. BBC Gets RFID Chipped in Barcelona
2. IBM Allocates $250 Million to RFID
3. HP Partners to Address Supply Chain RFID Market

Cautious Optimism at the EPCglobal US Conference

The EPCglobal US Conference wrapped up yesterday in Baltimore, with the 1200+ attendees rushing back to headquarters to continue what has been -- and will continue to be -- a gradual, diligent journey towards full supply chain visibility.

The conference, framed as "the Real Source for information regarding emerging [RFID] standards and technologies," was just that, with a packed schedule of panels, sessions, and expert discussions on all aspects of RFID technology.

Most agreed that there was a strong turnout and, more importantly, that attendees included some of the most important decision makers in RFID. As one attendee observed, "The quality of people here is far better than other RFID and supply chain management conferences, which just don't have the same amount of C-level people walking the aisles that you're seeing here. I feel like every other person I meet is someone I want in my Rolodex."

Another difference between this event and those from earlier this year was end users' level of sophistication with respect to RFID. Manhattan Associates Chief Marketing Officer Larry Ferrere noted that, compared with a gathering held at Wal-Mart's headquarters in Bentonville, Arkansas, four months ago, when many users seemed like deer caught in headlights, "there is clear progress today. 100% of the Top 138 are moving. Everybody's RFID project is either already underway or is at the stage where it will begin almost immediately."

But hurdles remain. Ferrere noted that some end users remain wary of making large RFID infrastructure purchases, afraid of spending a lot of money on technology that may quickly become outdated.

Then there remained the question of standards, which are the primary reason the show's organizer, EPCglobal, exists. The ratification of the "GEN 2" standard, which will formalize the way RFID data is communicated and organized, is expected sometime in October or November. But while the ratification will mark an important, long-awaited industry milestone, most agree that it is essentially a forgone conclusion. RFID Director at NCR, Ellen Boerger, said that the release of GEN 2 will be more of an "emotional relief" than anything, allowing the industry to cross off one more item from its list of challenges.

Media perception of RFID was another popular topic at the event. Many were wary of the excessive hype RFID is receiving from the media, not because they doubt the technology's promise, but because of the media's tendency to be extreme. The excitement surrounding RFID right now might result in a backlash of excessive negativity and "RFID doesn't work!" stories in 2005 if the Wal-Mart mandate implementations unveiled in January don't work flawlessly. As impinj's President and CEO Bill Colleran noted, "everyone involved in this initiative from the vendor and implementation side expects some snafus and hiccups. They are inevitable in a technology initiative this ambitious and disruptive." But, he worries, the media will probably be less understanding.

With respect to consumer privacy concerns, most presenters seemed to shrug them off as overblown and unjustified. Others argued that the convenience RFID will bring to consumers will outweigh whatever misgivings about privacy remain.

Overall, the atmosphere of the conference seemed to be one of "cautious optimism," as described by impinj's Colleran. The audience was bigger than at previous events, and everyone was more experienced and knowledgeable. As NCR's Boerger noted, "The industry is continuing to pick up the pace, but there still are a lot of kinks."

BBC Gets RFID Chipped in Barcelona

By now you've probably heard about VeriChip, the company that specializes in controversial human-implantable RFID chips. You may have also heard about Barcelona-based Baja Beach Club using the futuristic VeriChip products as a marketing ploy: party goers willing to receive the rice grain-sized RFID chip in their arms can not only use the device as a tab with which to order drinks, they also gain access to the trendy discotheque's coveted VIP section. In this article a BBC journalist humorously recounts his experience getting RFID chipped in Barcelona.

Read the article at BBC News


IBM Allocates $250 Million to RFID

On Monday, Big Blue announced an enormous quarter billion-dollar, five-year investment in Sensor and Actuator Solutions, the division under which radio frequency identification falls. The company plans to capitalize on its 18-month experience in RFID to quickly establish a leadership position in the market. It plans a Q4 release of its WebSphere RFID middleware system, and it will be reallocating 1,000 employees to the greater initiative. Sensor and Actuator Solutions' parent division, Pervasive Computing, is an attractive one for IBM, having grown 36% in 2003 to generate revenues of $2.4 billion.

Read the article at internetnews.com


HP Partners to Address Supply Chain RFID Market

News about Hewlett-Packard's activity in RFID continues this week with the important announcement of partnerships with OATSystems, an RFID middleware provider, and BearingPoint, an IT consulting firm. HP made the strategic decision not to try to independently tackle the RFID industry's hottest sector, supply chain management, and instead chose to partner with companies who were already expert in certain key areas. In contrast, HP will go it alone in the manufacturing, automotive, and oil sectors, where it already has a base of RFID clients and expertise.

Read the article at eWeek

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