BEA Buys RFID Software Maker

BEA Systems today purchased ConnecTerra, a privately held maker of Radio
Frequency Identification (RFID) software, for an undisclosed

ConnecTerra, of Cambridge, Mass., makes middleware that can help retailers
pull supply chain data from applications on a variety of devices and render
them through one, easily readable console.

BEA said in a statement ConnecTerra’s portfolio includes filtering software
at the “edge” of the network, as well as device management at the local
store, manufacturing plant or distribution center.

ConnecTerra also makes
RFID data management and compliance software for RFID retail and defense

BEA, which has been candid about its interest in RFID software because of
the promising revenue opportunities it offers from retail customers, said it
plans to use its WebLogic Communications Platform in conjunction with ConnecTerra’s software to
build business processes based on RFID.

WebLogic Communications Platform is a software suite geared to power
services such as e-mail, video, voice, chat or gaming.

The platform, previously known as Project Da Vinci, is run-time software
tailored for telecommunications providers that want to offer customers
cutting-edge technologies such as Voice-over IP (VoIP) and

Marge Breya, BEA chief marketing officer, said on a conference call from
BEAWorld in London today that the combination of BEA and ConnectTerra
yields standards-based technology on both sides of the fence.

“This also means we have a single infrastructure that can go ahead and make
the assets at the edge of the network go back into the data center. We also
believe the combination will mean we’re going to be able to automate key
busines processes that will be RFID-enabled. RFID is the killer app for the
sensor network.”

BEA and ConnecTerra have a history together, albeit a brief one. BEA said it
has been working with ConnecTerra over the past year with customers to
create software bundles for pallet- and case-tracking applications in retail.

Since 2001, ConnecTerra has built a solid reputation selling its software to
more than 25 consumer-packaged goods, retail and transportation companies
and system integrators. ConnecTerra is also helping to shape RFID standards
in standards groups such as EPCglobal.

BEA isn’t alone in believing RFID will reap a lot of revenues. AMR Research
said in a study that 69 percent of companies are planning to test or use
RFID in 2005.

And those vendors aren’t all necessarily in retail.

Vendors in consumer
products, pharmaceuticals, defense and transportation sectors are adopting
RFID to reduce out-of-stock inventory and counterfeiting and spoilage.

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