Q&A: Vendors Of RFID

1. What is the most common mistake you see VARs making with RFID?

SCS Corp., Bruce Roesner: VARs and most manufacturers continue to treat RFID as a stand-alone, off-the-shelf product. System integration continues to be a secondary issue, but this view must change for RFID to proliferate in the marketplace.

Texas Instruments RFid Systems, Bill Allen: The most common mistake that VARs make is treating RFID as though it's a plug and play technology. It would be easy for a VAR selling RFID to underestimate the complexity of the technology and misunderstand the technical limitations and how the environment can affect the system. The technology is also different from other AIDC (automatic identification and data collection) solutions because the sale and deployment of RFID still requires customized implementation, software development, and longer cycle times. Understanding these issues can create more opportunities for VARs to sell additional services. The market is maturing and RFID know-how is making its way deeper into the VAR channel.

2. What kinds of VARs will benefit most from selling RFID technology?

Escort Memory Systems, Suresh Palliparambi: VARs who specifically dedicate resources to RFID will benefit the most. VARs that carry all types of AIDC solutions and have a sales force that promotes different AIDC technologies at the same time will not see the benefits of RFID. Invest in dedicated RFID resources - even if it is only one person.

Intermec Technologies Corp., Jim Evans: Systems integrators and true value-add businesses that specialize in market niches where they know the applications, processes, and problems to be solved will benefit the most from selling RFID. For instance, this group would include channel companies that already have expertise in solving business problems with bar codes and wireless local area networks for specific markets.

3. What can a VAR be doing now to ensure future profits from RFID?

Texas Instruments RFid Systems, Bill Allen: Certainly, if VARs aren't selling RFID today, they can't afford to wait much longer. The market is moving so fast that their competitors will be too far along the learning curve. At the same time, you can't make a big investment in RFID until you have a fairly large application. So, the solution is to implement an RFID component as part of an overall system. VARs should look for places in existing or upcoming applications where RFID can supplement - but maybe not replace - other automatic identification or sensor technologies. For example, a typical warehouse application might use bar codes, but RFID may also be used for tracking valuable or perishable items.

Intermec Technologies Corp., Jim Evans: VARs need to get in there and get involved before the RFID market matures to a "me too" market. Get certified on a specific RFID technology and invest the resources necessary to get ahead of the power curve.

4. What can we expect from RFID in the next few years?

Escort Memory Systems, Suresh Palliparambil: Many large corporations are leaning toward using the ISO15693 standard since it can be used in Europe, Asia, Latin America, and the United States. Many of these companies are asking their suppliers to put RFID tags on products before shipping. This trend will start with tracking packages at the pallet/carton level and then gradually transition to tracking items within pallets/cartons. Thus, a huge market will open up for VARs.

SCS Corp., Bruce Roesner: We fully expect tremendous growth in the next five years due to a number of factors. First, the end users are taking a more active role in RFID projects, which results in a better understanding of the technology and a better realization of what is required. Secondly, the price continues to decline, but not to the level some suppliers would have the users believe. Finally, the technology exists now that will allow for the penetration of large numbers of tags into the marketplace. Not only does this mean that accurate readings of large numbers of tags in very short periods are possible, but that fast and accurate class identification is required as well.