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HP Service Takes RFID Asset Tracking to the Data Center

by Emily-Sue Sloane, MA Editorial Staff

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Posted on Monday, June 09, 2008 10:55:00 PM

Abstract: By placing RFID tags on servers and storage devices, HP enables customers to track data center hardware assets throughout their lifecycles.
Keywords: track data center hardware assets, RFID asset tracking, data center assets
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There's more to data center management than keeping track of who-knows-how-many millions or billions of bits of data coming in daily. There's also the challenge of keeping track of the servers and storage devices that process and house all that information.

Hewlett-Packard Co. is applying RFID technology to the task, offering a new service aimed at helping customers keep track of data center hardware assets and, consequently, reduce property loss, increase security, and improve audit controls. The HP Factory Express RFID service places standard, Generation 2 RFID tags on HP factory-built servers, storage devices, and rack enclosures, enabling customers to use just about any RFID reader to continuously monitor the equipment once it arrives at their facilities and throughout its lifecycle.

"Escalating customer demand for automated tracking led to HP's development of this service," said Frank Lanza, worldwide RFID director in HP's Technology Solutions Group, in a statement.

When it comes to asset tracking, many manufacturers have found success with RFID. "RFID has already proven itself to be available for tracking assets," said John Fontanella, vice president of research at AMR Research in a statement. "This new service is key to strengthening operational precision in a data center and ultimately customers' ability to lower operational risks."

"Asset tracking and management will represent a sizable part of the total RFID market, estimated to be around $5 billion (€3.2 billion) by 2012," Fontanella told Managing Automation today.

HP is targeting large enterprise customers with the service, though mid-market businesses might also find it beneficial, the company said.

"Companies might have hundreds or thousands of servers around the world, and with constant moving of racks and servers, they have trouble keeping track of inventories," an HP spokeswoman said in an interview with Managing Automation. With RFID technology, the equipment can be scanned automatically "from the factory to the customer without manual oversight."

As an early adopter of RFID technology in its own 33 manufacturing facilities worldwide, HP sees itself as something as an evangelist for the technology. In addition to the Factory Express RFID Service, the company offers tags, readers, middleware, and business applications for tracking and inventory management and security. It also offers RFID consulting and integration services, and participates in RFID standards development.

"We provide implementation services to complete [customers'] RFID integration into the supply chain. Our goal is to make RFID real for our customers and to show them the business benefits," the spokeswoman said.

Two levels of the HP Factory Express RFID service are available: the standard service, which includes standard, Gen 2 RFID tags affixed to specific products or packaging with a unique Electronic Product Code assignment and data-tracking capabilities; and a custom service that allows for customized RFID tag placement and additional services that transmit tracking information from the factory to the customer.

Each tag costs from $5 to $10 (€3.2 to €6.4). Other RFID services are available at additional cost.

"It is inexpensive when you consider they are mounting and burning in the tag. I think it opens the door wide open for HP to sell integration [and] installation services," Fontanella said.

The HP Factory Express RFID service is available directly through HP or its channel partners in the United States and Canada, or as part of the HP Factory Express, which is a portfolio of pre-priced, pre-configured, and integrated factory products and deployment services. HP plans to extend the service over the next year to its Factory Express locations in Brazil, Singapore, and the United Kingdom.