Released

4Q 2009

Product Code

VM-URDE-101

Price

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ABI Research’s ongoing RFID market analysis reveals that demand is increasing for new passive UHF reader form factors and embedded OEM reader module solutions that support applications across vertical markets.  High reliability and performance are critical customer-partner requirements for today’s passive UHF readers and embedded reader applications.

Size, cost, power efficiency, software, and overall functionally are additional key passive UHF reader module considerations, features that can enable a diverse range of OEMs, reader manufacturers, and systems integrators to leverage RFID as a feature to their products, devices, assets, and services.  As a result, continued innovation in the passive UHF OEM RFID reader module space remains essential to product and market development.

ABI Research has prepared this Vendor Matrix to give an unbiased rating of leading passive UHF (ISO 18000-6C/Gen2) embedded RFID module vendors on the basis of each company’s perceived “Innovation” and “Implementation.”  ABI Research evaluates OEM reader module manufacturers by selecting multiple criteria related to product and company characteristics as metrics for each vendor’s performance in these two areas.

This analysis includes only vendors that directly design and deliver embeddable passive UHF OEM reader module products.  While ABI recognizes that ISO 18000-6B compliant passive UHF readers/reader modules have been deployed and continue to be marketed, this Vendor Matrix only evaluates ISO 18000-6C/Gen2-compliant passive UHF embedded RFID reader OEM module.  It does not include reader chipsets, such as the R1000 from Impinj or reader manufacturers that leverage their own modules in their dedicated/finished readers such as Motorola.  These manufacturers do not sell modules externally to OEMs and other users.

ABI Research selected the vendors profiles in this vendor matrix based on our research as well as interviews with and feedback received from industry participants, including hardware vendors, integrators, and end users. 

Description of Criteria

Criteria used to develop this Vendor Matrix are related to product/company characteristics that serve as proxies for vendor performance in the two key areas: Innovation and Implementation.

Numerical scores are aggregated, weighted, and analyzed to provide the overall rankings that are assigned to each vendor on the Innovation and Implementation axes.

Innovation

The six (6) Innovation scoring criteria and their associated weighting are:

1. Embedded/OEM Reader Module and Related Module Product Offering Mix (25% weight)

·         Evaluates the breadth of passive UHF embedded RFID OEM reader modules offering portfolio, including the number of form factors/models

·         Evaluates optional reader module hardware accessories such as multiplexers

·         Evaluates OEM reader development kit offerings and availability of reference designs

·         Additional consideration for awards/recognition for specific offerings

·         Slow product launches or upgrades have a negative impact on scoring for this criterion

2. Physical Specifications and Product Feature Sets (10% weight)

·         Evaluates form factor sizes and size variety

·         Evaluates power consumption/efficiency

·         Evaluates tag read rate/read speed

·         Evaluates antenna connectors

·         Evaluates operating temperature ranges

·         Evaluates support for multiple tag custom commands from the various commercially available Gen2 ICs

·         Evaluates other special features such as host interface variety (TTL, USB, SPI and I2C, etc.) and data interface support speeds

·         Additional consideration for strong tag read range/distance performance

·         Additional consideration for robust firmware and firmware support

3. Industry Leadership, Influence Factor, and Knowledge Transfer (Innovation/Technology) (15% weight)

·         Evaluates involvement in leading trials and deployments

·         Evaluates length of time in passive UHF RFID reader module space

·         Evaluates perceived level of influence in the space

·         Evaluates involvement in industry groups/associations (both RFID and end-user/vertical related)

·         Evaluates participation in RFID education and awareness campaigns

4. Reader Module Design Innovation/Strength of Engineering (25% weight)

·         Evaluates OEM reader module structure and design innovation capabilities, including final OEM packaging design

·         Evaluates strength of engineering team and engineering leadership

·         Evaluates the ability to embed modules for quick, seamless integration in numerous assets, vehicles, devices, and other objects of various shapes, sizes, uses, etc.

·         Evaluates performance optimization, including read speeds and read rate reliability

·         Evaluates “green-worthiness” or power consumption levels of OEM embedded modules

·         Additional consideration for strong technology and product intellectual property (IP) portfolio

5. Product Compliance and Certifications (5% weight)

·         Evaluates certifications/approval received from FCC and ETSI at the modular level (“Non-modular approval” negatively impacts scoring for this criterion)

·         Evaluates worldwide certification/compliance for global use and deployment

6. New Application and Reader Form Factor Enablement (20% weight)

·         Evaluates focus on developing new application areas/enabling new applications though new, innovative products and solutions

·         Evaluates engineering capabilities to enable new applications

·         Additional consideration for Application Programming Interface (API) for configuring, controlling, and accessing embedded UHF RFID readers.  By providing a common interface, APIs help simplify the development of customized RFID applications

·         Evaluates development tools, programs, and value-add solutions/offerings available to partners that can be leveraged to enable new applications

Implementation

The eight (8) Implementation scoring criteria and their associated weighting are:

1. Manufacturing Capabilities and Strategy (10% weight)

·         Evaluates manufacturing capacity

·         Evaluates manufacturing capabilities

·         Evaluates manufacturing strategy (in-house, outsourced, combination)

2. Overall Market Position, Leadership, and Strength (20% weight)

·         Evaluates level of market penetration and leadership through subjective and objective considerations such as:

-            Perceived level of penetration/share

-            Command of passive UHF embedded RFID reader module segments

-            Perceived position in market relative to competition

-            Revenue growth (historical and forecasted)

-            Financial strength, health, and backing

-            Company size

·         Positive word-of-mouth/momentum in industry

·         Evaluates involvement in industry groups/associations (both RFID and end-user)

·         Evaluates participation in RFID education and awareness campaigns

3. Installed Base / Customers / Volume / Perceived Market Share (25% weight)

·         Estimated number of shipments per year/perceived market share

·         Evaluates strength of customer base and customer mix

·         Evaluates types of deployments (pilots, full deployments, etc.)

·         Evaluates typical size of deployments

·         Evaluates visibility in deals/end-user proposals

·         Evaluates involvement in leading trials and deployments

4. Perceived Strength within Verticals and Applications Targeted/Served (5% weight)

·         Evaluates strength/leadership position within targeted/served verticals and applications

·         Additional consideration for alliances with key vertically-aligned industry associations, regulatory bodies, etc.

·         Evaluates thought leadership within vertical and applications 

5. Persistent Market Presence and Experience (10% weight)

·         Evaluates length of time in RFID space

·         Evaluates perceived level of influence in the space

·         Evaluates revenue growth and financial stability

6. Partner Strategy and Approach (5% weight)

·         Evaluates breadth and strength of OEM, hardware, VAR, and integrator partner network/ecosystem

·         Evaluates overall partnering strategy and approach, including partner “friendliness” (approachability and receptivity)

·         Evaluates partner collaboration efforts such as cross marketing and bringing partners in to deals

·         Evaluates depth and strength of those relationships – considerations include vertical and application specialization and synergy among partners

·         Additional consideration for partner/potential partner opinions shared with ABI Research

7. Scope of Distribution Channels (5% weight)

·         Evaluates overall diversity of distributions channels

·         Evaluates total number of channel partners

·         Evaluates geographic coverage via reseller network – local, national, and region partner mix

·         Additional consideration for cross-marketing and messaging efforts with channel partners

8. Sales Strategy and Approach/Go-to-Market Strategy (20% weight)

·         Evaluates overall go-to-market strategy for OEM reader modules

·         Evaluates breadth of vertical and application markets targeted and served

·         Evaluates geographical distribution of shipments/revenues

·         Evaluates sales team size

·         Evaluates sales team reach across geographic regions

·         Evaluates indirect and/or direct sales strategy

Scoring

Vendors receive a “rating score” for each criterion ABI Research defined under Implementation and Innovation.  These score, ranging from 0 to 9 and awarded in 0.5 point increments, are based on available information as well as ABI Research’s assumptions.  (A score of 8.5 is possible within a given criterion.)

Each criterion (and its score) is weighted based on ABI Research’s opinion of each criterion’s level of influence on and importance to the overall assessment of Innovation and Implementation.  The number of criteria for Implementation and Innovation may vary; however, this does not have an impact on a vendor’s ranking.  Vendors receiving higher scores in higher weighted criteria will benefit in terms of better overall position via higher Innovation and Implementation scores.  Lower scores in higher weighted categories will result in weaker overall placement due to the impact of the weighting. 

The rating scores assigned to each criterion are added to determine a “raw total score” for Implementation and Innovation.  A mathematical formula is then applied to adjust for the 0-9 rating system and the number of criteria so that vendors can be positioned along the x- and y-axes (with a maximum score of 100 for Implementation and Innovation).  The mathematical formula does not impact vendor ranking.

ABI Research’s does not publicly disclose individual scores for each criterion for each vendor.  However, ABI Research will accept requests to discuss a vendor's individual scores with that same vendor.

Rankings

After individual scores are established for Innovation and Implementation using the above criteria, an overall company score is established using the Root Mean Square (RMS) method:



 

The resulting overall scores are then ranked and used for percentile comparisons.

The RMS method, in comparison with a straight summation or average of individual Innovation and Implementation values, rewards companies for standout performance. 

For example, using this method a company with an Innovation score of 9 and an Implementation score of 1 would score considerably higher than a company with a score of 5 in both areas, despite the mean score being the same.  ABI Research believes this is appropriate as the goal of these matrices is to highlight those companies that stand out from their peers.