Seeking to capitalize on the growing market for radio frequency identification (RFID) products, Siemens Automation & Drives today formally introduced a comprehensive hardware and software system that can be used in a variety of industrial settings.
The system, called the Simatic RF600, is designed for use in ultra high frequency (UHF) environments in manufacturing production, warehousing and retailing. It consists of three major components: hardware and software, engineering and integration, and consulting services.
"This is a coordinated system of matched hardware and software," said Dennis Sadlowski, general manager of Siemens Factory Automation Sensors, during a webcast to announce the product. "The RF600R (portal reader) can be used in dense reader environments."
In September of last year, Siemens, which offers about a half dozen other comprehensive RFID systems in other markets, signaled its intention to enter the UHF market. In February of this year, Siemens announced that it had completed development of the Simatic RF600 and had begun testing. Today marked the formal introduction of the system and a roadmap for delivery of its parts.
Within the hardware and software area, Siemens is providing readers and antennas, tags and printers, and software that will integrate RFID to both automation and enterprise systems such as manufacturing execution systems, warehouse management systems and enterprise resource planning systems. The software will make it possible for manufacturers to collect, convert and transfer RFID-generated data and will be able to manage up to 200 devices per node.
"Integration into business software is important," Sadlowski said, noting that the Simatic RF600 supports open XML interfaces. "In the end, it's the tags and readers that feed them."
The Simatic RF600, Sadlowski said, complies with EPCglobal Class 1 Generation 1 and Generation 2 specifications as well as the ISO 18000-6 standard.
Sadlowski also said the new product will be available in stages. Available now are readers and smart labels. Mobile readers for the U.S. market and printers will follow in the first quarter of 2006. Industrial tags, including some styles compatible with metal containers, will become available in the second quarter of next year, and both RFID software and mobile readers for worldwide use will be delivered in the third quarter of 2006.
Siemens did not provide specific pricing information for the Simatic RF600. But, in an interview, the company's internal RFID consultant, Jeff Schaengold, said that Siemens has carefully evaluated the market and competing systems. "We know what the market rates are," he said. "We positioned the pricing right in the center."
Among industry sectors in which the Simatic RF600 is targeted are consumer product goods, food and beverage, pharmaceuticals, retail and material handling, noted Alex Stuebler, business manager for Siemens Factory Automation Sensors.
Commenting on the introduction, ARC Advisory Group vice president Chantal Polsonetti said that Siemens' packaging approach to the Simatic RF600 is typical of the way the vendor goes to market with a product. "They act as an integrator."
Polsonetti also noted that Siemens Automation & Drives, the Siemens business unit making the announcement of the Simatic RF600, is only one of several company businesses involved with RFID. With regard to the question of whether Siemens is late to market with the RF600, raised during a question and answer session following the webcast, Polsonetti said: "I certainly think that is a market perception, but it depends on whether you are a Siemens customer waiting for a product."
She also noted that other Siemens businesses have been pursuing supply chain contracts in the RFID market. "They didn't have an internally developed product. Now they do."
During the Q-&-A session, which was conducted by e-mail, Siemens officials were asked about their interest in supporting certain standards organizations involved with RFID. Sadlowski said that Siemens has not been approached to join a new group, called the RFID Consortium, that has been started to pool RFID intellectual property (IP).
"Several other players with strong IP also are not participating," he said, noting the large number of patents owned by Siemens. "Innovation investments need to show return."
Sadlowski also noted that Siemens recently renewed its membership in EPCglobal, the organization responsible for developing standards for the electronic product code.