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WirelessDevNet.com Press Release
ABI Research Warns of an Impending Shakeout in the RFID Industry
Oyster Bay, NY - July 20, 2005 - Tags and readers are often thought of as the "business end" of RFID. They're where the rubber meets the road: where data about tagged items 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.
ABI Research believes that this space is primed for a shakeout in the coming six to nine months. There will be rollups, acquisitions and consolidation, as the need for more focused RFID-related software and applications grows.
These changes are explored in the latest release of ABI Research's "RFID Research Service", which provides timely updates on the rapidly-changing RFID market.
According to Erik Michielsen, ABI Research's director of 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 of this," 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 their need to keep building closed-system and/or customized solutions between the reader and the enterprise application integration layer, commenting, "I think they would be better off partnering and focusing resulting free energy on services and higher end software."
Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in automotive, wireless, semiconductors, broadband, and energy. For information visit www.abiresearch.com, or call +1.516.624.2500.
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