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North American RFID Middleware and Software Markets
Frost & Sullivan, June 2007, Pages: 62
This Frost & Sullivan research titled the North American Middleware and Software Market provides the total middleware market size, critical growth drivers, and challenges faced by middleware vendors.
Market Overview
ROI-based Adoption of RFID Middleware Brings Cheer to Market Vendors
Radio frequency identification (RFID) middleware vendors have found a reason to celebrate as users are becoming increasingly aware of the value of RFID in increasing the efficiency of asset tracking, inventory management, and process visibility. This trend, along with a greater focus on Return on investment (ROI)-based adoption instead of the regular mandate-based adoption, has turned around the fortunes of the market. Complete solution-driven RFID middleware products have taken the lead in the market, and are adapting to the shift in competitive growth areas. This ROI-based focus will help ensure steady, sustainable growth in the RFID middleware market.
By focusing on ROI-based adoption and addressing software and protocol interoperability, RFID middleware vendors can help broaden the number of end users and their investments. These capabilities and the value of data management in applications that have strong, demonstrated ROI will help drive the market in the near future. 'By creating valuable knowledge from terabytes of raw data, RFID middleware has helped realize positive returns in many applications,' says the analyst of this research service.
Middleware Participants Need to Demonstrate ROI from Open-Loop Applications to Improve Initial Adoption Rates
Unlike applications that use active RFID tags and closed-loop applications such as asset tracking, open-loop applications have not been able to present a clear ROI-case due to the high tag costs. It is vital to demonstrate open-loop ROI before the market can achieve item-level tagging comprehensively. Participants are working to increase the probability of attaining those returns without waiting for a 5-cent tag solution by maximizing the value of every data point through RFID middleware.
'By offering full infrastructure solutions backed up by seamless enterprise software integration, middleware companies can help recognize often-elusive ROI in RFID,' notes the analyst. 'Incorporating that data into enterprise-wide systems gives companies the ability to draw meaningful conclusions about their business processes.' This business advantage to clients is likely to go a long way in helping the manufacturers improve the uptake of their products.
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