Tuning In To RFID

That makes 2005 the year of ramping up, and it promises to be a daunting task. The shortage of skilled partners is downright dire, according to industry association CompTIA. Based on meetings with 30 organizations in the public and private sectors, CompTIA reckons only 10 to 100 systems integrators worldwide are capable of installing RFID systems. It estimates a need for 500 to 1,000 skilled firms just to handle the various mandates coming in the next three years.

Sean Clark is one of the very few solution providers who's already plugged in to the more-advanced radio-based sales and integration opportunities. As director of RFID solutions at SIS Technologies, Houston, he's been dealing with RFID issues since 2001. And up until very recently, he, and other VARs like him, have been left to their own devices when navigating the ins and outs of an RFID implementation.

Now, as the market begins to mature, partners are starting to get some support from vendors gearing up for the RFID onslaught. More and more vendors, distributors and industry associations now offer—or soon will—certifications, classes, starter kits and even business-case scenarios for partners looking to add RFID to their service portfolios. Just last week, Hewlett-Packard, Palo Alto, Calif., said it was working with RFID hardware vendor Alien Technologies and others to set up a facility that will mimic real-world manufacturing and distribution conditions—the better to understand the unique requirements of the technology. Also last week, Sun Microsystems, which already offers a variety of RFID programs for its iForce partners, unveiled the Sun Java System RFID Tag and Ship ISA Solution, which comprises hardware, software, readers, printers, one week of client training, online white papers and other educational materials that VARs can use to help their customers meet basic RFID mandates.

Jim Rossi, Sun's chief engagement manager for RFID, said the Santa Clara, Calif., vendor is looking into additional forms of training as well. "We are getting swamped by partners wanting to learn about RFID," said Rossi.

KNOWLEDGE IS POWER
In nearly every way, SIS, a Sun VAR, embodies the model of the modern RFID solution provider: knowledgeable, nimble and competitive with the largest consultancies in the business. It's also a full-service exercise, if ever there was one.

"Our roles change depending on who the meeting is with," explained Clark. "If it's with the IT folks, we have a more technical talk about the implementation and the demands on the network. If it's with the vice president of operations, we discuss warehouse operations and supply chain. If it's a meeting with the CEO, we start talking about how we might get the ROI, and where the costs and savings might be." In essence, SIS has to know how to deliver to customers the technical, business and financial sides.

In fact, Clark describes a partner business model echoed by nearly everyone in the RFID partner community—one requiring an extraordinary mixture of both technical and business acumen. The breadth is startling.

For starters, solution providers need to understand the different RFID standards, such as the electronic product code (EPC), then combine that with a knowledge of radio wave physics before they can recommend, install and place RFID tags and readers. Once they master that bit of arcana, they must integrate RFID hardware with the customer's IT infrastructure. Today, this typically requires writing customized middleware. And of course, it's all meaningless if the solution provider doesn't understand the customer's internal business processes.

The trick lies in truly knowing vertical domains and disciplines, such as inventory control for the furniture industry. Without that knowledge, it's impossible to pinpoint what process in the customer's organization can benefit from a constant stream of data pouring in over the airwaves. "RFID doesn't necessarily change your inventory levels," said Clark. "What it does is allow teams to look for ways to change processes, either by increasing productivity or decreasing inventory. If we can open customers' eyes to all the things this can or can't affect, we are more of a trusted adviser for both business and technology."

This is more than mere lip service. When it comes to RFID, solutions must be grounded in a deeply rooted business context.

"Deploying RFID is still an expert's game," said Alan Melling, senior director of EPC solutions at Symbol Technologies, a Holtsville, N.Y., RFID hardware vendor. "This is a complicated matter that requires subject-matter expertise. And I mean both [vertical] domain and RFID expertise. You can't be a generic bar-code or terminal reseller and figure on jumping in to becoming an RFID player. This is too complex, too demanding for that. It has to be a core focus of your business."

That reality needs to infuse every discussion of partner opportunities because, despite the fact that RFID trade shows are popping up like mushrooms after a spring shower, commercial development remains relatively immature.

"This is one of the few times where a technology takes everyone back to where they were 20 years ago," said Michael Israel, president of A&R Consulting Enterprises, Upper Saddle River, N.J. "There's nothing off-the-shelf about these solutions, except for the readers and tags. In fact, there's so much going on that the huge potential for consulting outweighs the other components. And it's the same kind of consulting that, in the past, was done by the Accentures, BearingPoints and Perot Systems of the world. But with RFID, even they are learning as they go. The positive side is there's no one out there now who can classify themselves as experts. We are all on the same footing."

That equal-opportunity learning curve pretty much defines the RFID channel. In effect, it's a technological frontier marked by vast unpopulated areas. And the widest open space needs to be filled by a knowledgeable channel. One problem: These labor-intensive efforts take time.

"I talked to one of the largest solution providers anywhere [and they] said they can handle maybe 100 customers at a time," said Greg Dixon, CTO of specialty distributor ScanSource, Greenville, S.C.

RADIOHEADS
As solution providers ramp up for RFID this year they can expect to confront a veritable blizzard of information. For quick proof, conduct a simple RFID search on Google. Those more than 6.8 million results include such topics as frequencies, standards, new generations of tags, readers, printers—and other search flotsam. Given the sheer weight of all this information, it's dauntingly difficult to know what's important, and what's not.

"The reason the reseller channel hasn't gotten involved much in RFID is knowledge," said Donovan Lane, president of ABC Computers, a Microsoft Business Solutions partner that specializes in Navision. "We had to do our own due diligence—educating ourselves on the partners of choice for the different products involved. It was a case of data collection at its finest."

ABC, Waupaca, Wis., offers a prime example of what, until very recently, has been an environment characterized by ad hoc information gathering, education and product evaluations among partners interested in RFID. ABC took it upon itself to research the technology, find the right vendors of RFID-tag printers and readers, and approach Microsoft for help with existing Navision customer Jack Link's Beef Jerky. It started with a simple Google search of "RFID starter kit." "Sure enough, up popped Texas Instruments' 'RFID in a box,' with a reader and 15 different tags," said Lane. He had the package shipped to him overnight.

ABC's technologists then hooked up the reader to Navision and wrote a routine to make Navision talk to the reader every three seconds. With its RFID knowledge, the company approached Microsoft to provide subject-matter experts. "It helps when speaking with Microsoft that we knew enough of the RFID basics," said George Britts, ABC's vice president of business development.

As a result of ABC's effort, Microsoft Business Solutions will include RFID support in upcoming versions of Axapta, Great Plains and Navision. "It's fair to say that Microsoft was a willing audience. But we were the catalyst," said Britts. "We are so passionate about RFID for data collection that we want it in the hands of the channel for MBS and Navision."

Other vendors have gotten the signal as well. Symbol focuses the bulk of its partner training on certifications. And Alien offers the RFID Academy—face-to-face, two-day classes designed to bring partners and customers up to speed on Alien's products. "In 2004 we certified about 1,000 people," said Rick Baron, director of channel management at the Morgan Hill, Calif.-based vendor. "We're told we're among the most complete educators on the topic. We'll be broadening out in 2005 to offer classes in more places."

Also involved in educational programs, CompTIA and ScanSource will soon offer what could be the most intriguing classes for a wide range of partners. CompTIA is creating a full curriculum to help resellers and systems integrators master this difficult topic. According to David Sommer, vice president of electronic commerce at the Oakbrook, Ill., industry association, CompTIA will first develop training on radio technology skills. "It will cover a whole body of knowledge around the radio technology that typical IT professionals don't have," said Sommer. This includes how radio waves travel through different materials, the art and science of tagging, and the physics affecting antenna placement.

"From there, you get into the solutions architecture," said Sommer. "Do you throw the data in a warehouse? How do you get it in the ERP application? Plus, there's an entire network architecture that includes an object-naming service, where you keep the data associated with a given item in one central location instead of shipping it from trading partner to trading partner. These are the sorts of things systems integrators need to understand."

ScanSource, meanwhile, is hoping to take some of the uncertainty out of implementations. According to Dixon, the distributor expects to consolidate certifications for all the products in a given solution. "We might give partners two or three scenarios to choose from, from lightweight to high-end," said ScanSource's CTO. In addition, partners will have access to ScanSource's RFID help desk for detailed assistance with both pre- and post-sales. On the first deal, the distributor will send solution engineers to the customer site, and they can even help with site surveys. The services are slated to be available in the first quarter, he said.

Still, even with such resources becoming available, it's important to weigh the pros and cons before jumping in. Consultants, integrators and even vendors caution: Do not enter into RFID lightly. "It comes down to a commitment of time, resources and energy to learn this—and you won't earn that investment back after your first project or two," said Symbol's Melling. "I've talked to several resellers who get into it because one customer wants to get into RFID. Very, very bad. You can't just jump into this."

A&R Consulting's Israel agrees. "If you don't do it every day, you can't support RFID as an endeavor. It's a living, breathing application that needs to be supported, and your engineers have to know how to use it, and they need real business domain expertise. Without that focus as a major part of your business, you're better off staying away."

But the rewards are there for those who make the commitment. "We are already receiving a number of calls from second-wave Wal-Mart suppliers and first-wave companies that are expanding operations," said Bret Kinsella, vice president of operations and marketing at Odin Technologies, an RFID specialist systems integrator in Herndon, Va. "It should be a strong year for resellers as more companies look to buy equipment and the channel sales begin to surpass the direct sales from the manufacturers."