RFID industry set for Alien invasion

The IPO of RFID kit maker Alien Technologies, announced last week, will be a mixed blessing for the industry, Gartner has predicted.

According to a report by the analyst house, news of the float is "good for the RFID industry because, on balance, it will increase the visibility of and investment in RFID applications".

Gartner also reports that even if the IPO falls flat, it may still prove a boon to the RFID market by encouraging other track-and-trace companies to go public, as well as stirring interest in the financial community.

It could also work out well for Alien, Gartner said, giving it access to "substantial capital". However, the tag-maker will also need to sort out its "unsustainable" strategy and face up to the increased financial examination that will result from going public.

The fallout from the floatation could also impact on other fledgling RFID businesses.

The report said: "The Alien IPO could bring an unwelcome level of scrutiny to RFID projects that are still developing. It could also instigate another round of intellectual property scuffles between vendors, as Alien has not signed on to Intermec's Rapid Start programme."