RFID Will Become the Next Dominant Technology in the Dallas Metroplex

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1 RFID Will Become the Next Dominant Technology in the Dallas Metroplex Presentation to the IEEE CVT October 18, 2005 Allan Griebenow President & CEO AXCESS International Inc. 1

2 121 Dallas Metroplex Businesses in RFID.big guys are playing.they re well distributed.. Sys Int/Solutions, 91 Assoc/Educ Institutions, 16 Consulting, 22 VCs, 6 Equip Mfg, 28 Nets, 9 Inf Sys, 25 Sources: Oct. 05, UNT - Texas Center for Digital Knowledge (TxCDK) Study on Dallas RFID Companies Preliminary Findings 2

3 Product mix is also well proportioned Middle wa re, 6 Software, 31 Platforms, 5 Outsourcing, 16 Design, 24 Ha rdwa re, 43 Applicat ions, 42 Source: UNT - Study on Dallas RFID Companies Preliminary Findings 3

4 An RFID Business Ecosystem Exists in Dallas Count by Types of Business Total Entity Count = 121 End Users Potential for dominance? Demand,? 91 System Integrator/ Solution Providers Hardware Software Networks Growth,? Venture Capital Assoc./Educ. Institutions Consulting Innovation,? Source: UNT - Study on Dallas RFID Companies Preliminary Findings 4

5 RFID market forecast shows robust demand (IDTechEx predicts $7.3B in 08) 5

6 Wal-Mart, The Driving Force for Local Growth EPC Global, Passive, Slap and Ship Label Tag < $.10/chip Pallet Carton Jan 1, 2005 Mandate for 100 Suppliers Jan 1, more suppliers 3 Pilot Distribution Centers Sanger, TX, Cleburne, TX, DeSoto, TX 5 MM cases, 85 MM reads to date 16% reduction of out-of-stocks Item 50-90% tag reads vs. 100% desired Over-hyped? Sources: RFID Implementation Challenges Persist, All This Time Later, InfoWeek 10/10/05 RFID Journal Online 10/17/05 6

7 RFID has passed the peak of hype..the adoption rate is already faster than barcodes. Peter Regen, V.P. Global Visible Commerce Unysis..and there is no turning back John Fontanella, VP Supply Chain Services The Aberdeen Group Hype Cycle Curve Passive RFID 7 Ref:July 25, 2005

8 But, EPC isn t the only game in town RFID comes from multiple technologies Electronic Article Surveillance Toll Tagging 40 s Friend or Foe 60 s Early 90 s 90 s Time Security Access Control 8

9 TI introduced applications-based RFID Contactless Payment Keyless Entry Document Mgmt Passive Authentication Baggage Tag EPC Supply Chain Source: TI 9

10 RFID contactless credit cards are now out 1.9B smart card chips shipped in 2004 = $194MM in payment revenues.3b were contactless Sources: Card Technology and ABI Research Seattle Seahawks and Baltimore Ravens implementing Pay Pass Tuesday, February Integrators/Solution Providers 10

11 Cell Phones are embedding RFID Uses: payments and transit? P? and IDTechEx Integrators/Solution Providers 11

12 Sensors are converging with RFID Relative Market Sizes and Overlap RFID Active RFID Remote Sensing Sensing 10X RFID Market - Temperature -Vibration -Humidity - Shock -Etc

13 13

14 Active RFID applications are exploding Battery Growth in apps from 121 to 210 in last year. - Access Control - Asset Management 14

15 Active RFID solutions hit every vertical Patients Visitors Cargo Containers Courtesy Busses Municipal Busses Babies Document Folders Police Cars Earth Movers Geriatrics Test Equipment Laptop / Desktop PC s Military Vehicles Airport Fuel Vehicles Prisoners Municipal Vehicles Military Personnel 15 Fleet Trucks

16 Active RFID Hybrids use today s wireless tech + ZigBee ( ) + Wi-Fi (RTLS) + GSM + Bluetooth + Biometrics Any battery-powered, wireless device not used for conversation is RFID 16

17 Growth: RFID is now a Platform technology WalMart EPC Toll Tagging Passive Apps Access Control Smart Cards RFID Active Hybrids Active Applications Cell Phones Sensors Technologies and applications are converging around RFID 17

18 From Mobility to Convenience Concepts in transition: 1) Communication Identification 2) Send data Sensing and collecting 3) People focus Thing focus New concepts: 1)Automatically locate 2)Automatically count (inventory) 3)Automatically track & trace 4)Automatically authenticate 5)Automatically protect 18

19 Every thing communicates New technologies: 1)Printed Circuits 2)Micro-sensors 3)Micro-batteries 4)Smart Active Labels (SALs) 5)Mesh Dust Networks 6)Nano.. 19

20 Innovation Centers are Critical Texas Center for Digital Knowledge (TxCDK) RFID Research Center Center for Intelligent Supply Networks Supply and Value Chain Center Source: UNT - Study on Dallas RFID Companies Preliminary Findings 20

21 A Healthy RFID Business Ecosystem in Dallas Count by Types of Business Total Entity Count = 121 End Users Demand, Yes 91 System Integrator/ Solution Providers Hardware Software Networks Growth, Yes Venture Capital Assoc./Educ. Institutions Consulting Innovation, Yes Source: UNT - Study on Dallas RFID Companies Preliminary Findings 21

22 Ecosystem Supported by Dallas HQ Businesses Count by Types of Business Total Entity Count = 49 End Users 44 System Integrator/ Solution Providers Hardware Software Networks Venture Capital Assoc./Educ. Consulting 6 Institutions Source: UNT - Study on Dallas RFID Companies Preliminary Findings 22

23 The Next Dominant Technology in Dallas Dallas is the epicenter for EPC WalMart TI triggered market for app-based solutions Active RFID tags people/assets/vehicles/sensors Hybrid RFID utilizes all the wireless technologies Multiple technologies converging around RFID Research indicates a technology ecosystem exists today in Dallas 23

24 Dallas RFID Industry Show and Dinner 24

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