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Promising interoperability with BizTalk Server 2006 R2 are reader, tag, software and services manufacturers Alien Technology Corp., Cactus Commerce Inc., Intermec Inc., Paxar Corp., Sirit Inc., Symbol Technologies Inc. and others.

The group aims for "out of the box" integration with RFID hardware and software products – something RFID technology lacks.

That's good news for Annin & Co., a 158-year-old manufacturer shipping flags tagged with RFID to more than five of Wal-Mart Stores Inc.'s distribution centers.

RFID tag prices declined, but interoperability hasn't improved much in the past year since Annin & Co. began working with the technology, says Carter Beard, the company's vice president of manufacturing and business systems. "I'd like to see the hardware vendors come up with a better approach," he said. "We need to see companies build hardware based on open standards, rather than proprietary, open standards that everyone can share."

Adoption for RFID in supply chains is slow going, though mandates from Best Buy Inc., Department of Defense, Target Corp., Wal-Mart and pharmaceutical companies bring the technology into the forefront.

Unwilling to take chances on a technology perceived to run on propriety hardware, many supply chain executives not affected by retail mandates go with a wait-to-adopt approach. Microsoft BizTalk Server group product manager Burley Kawasaki says the BizTalk Server 2006 R2 platform, scheduled for release by June 2007, should ease that pain.

"We are trying to put in place a generic layer that keeps you slightly buffered from the hardware," said Kawasaki. "It's similar to printer drivers. You don't need to know or care too much what the printer manufacturers are doing as long as they provide a standard driver that lets you print."

It's the first time Microsoft has detailed plans to add the technology to its Windows platform. BizTalk Server 2006 R2 will feature APIs and tighter integration to let third-party vendors tie RFID hardware and software into the platform. It also will include a set of business rules and events management capabilities so RFID events can connect with backend processes.

Companies are building an application layer above the device layer and many of the hardware vendors are building API for simple connectivity. Intermec, for example, said the first software drivers supporting Microsoft BizTalk RFID are scheduled for release in October, with test versions available Monday in the Intermec Developer Library's Beta Zone.

Symbol said customers have begun trialing the Device Server Provider Interface (DSPI) software that allows its XR400 series of RFID readers to connect with Microsoft's BizTalk RFID technology. "We have a handful of customers working with our readers and a beta version of Microsoft BizTalk," said Alan Melling, senior director of business development at Symbol. "This is the beginning of a trend toward companies supporting RFID deployments out of the box."

Sirit, which specializes in RFID and near field communication (NFC) technologies, said Microsoft BizTalk RFID will offer automatic support for its readers, too.

BizTalk Server 2006 R2 pricing and licensing have not been determined. Kawasaki also said Microsoft remains open for companies like Oracle Corp., SAP AG, Intermec, Symbol or others to bundle BizTalk with their software, hardware or services.

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