March 26, 2008 – Alien Technology was anointed as one of the most watched RFID companies when they sent shockwaves through the industry, and the general press, after abandoning their IPO less than two years ago. We speak with George Everhart, CEO at Alien Technology for about fourteen months now.

When you got to Alien, did you have a background in RFID in particular?

EVERHART: No. I have always been in high tech, but in a few different segments of high tech, starting back with Apple Computer and the whole personal computer rush. From there, to networking as well as information and network security. So, it has been a variety of different segments.

My background, my education is an MBA in Marketing and so I don’t have a technical degree and, therefore, I wasn’t really technically linked to any specific technology.

It sounds like you have seen other technologies go through some growing pains in the past.

EVERHART: That is for sure.

So when you first looked at RFID general, and in Alien in particular, what was your perspective?

EVERHART: As you might guess, when I was first contacted about this opportunity, I did a little bit of homework. I talked to quite a few people in the industry, both people that might be potential users as well as people that were involved in RFID.

I had a general understanding of it, of course, just from being in the (Silicon) valley here. What I became convinced is that the technology is a disruptive technology. And especially now that I have been here fourteen months, I am more convinced of it.

You know, one of the things that we wrote at the time Alien pulled the IPO, is that it seemed so many people in RFID were looking at Alien as a bellwether for them and the rest of the industry. It was almost like this one event was larger than life.

EVERHART: Well, that might be the case; but, I think it is all about this particular technology and market. The technology really is disruptive and if you think about other disruptive technologies, almost all of them were overhyped in their initial stages. As you well know, Gardner even had the hype occur for this market.

I think it was overhyped in the initial stages; but I am reminded of back in the late ‘80s, I can't remember what year it was; but Computer World came out with this big headline, “This is The Year of the LAN.”

Right.

EVERHART: And then the next year, there was an article about, “What happened? This wasn’t the year to LAN.” And then the next year, well, this will be the year of the LAN.

The point being, I am not sure if that there ever was a year of the LAN; but no one would argue today how totally pervasive local area networks are. And, you know, the logic back there was the same as RFID logic is today. You can see how, and why, this technology will be in everything we do. It just takes time.

So whether Alien was a bellwether for the market, I think the market, itself, was over hyped and did go through a correction. Now we are seeing what I would call steady, healthy and aggressive growth in the market; just not that hockey stick growth that, you know, you wake up on Tuesday and volume had just gone through the ceiling.

I don’t know if I can give you all the credit, George; but from an outsider’s point of view, it looks like there is a lot more excitement around what is going on at Alien. I see more initiatives and what appears to be more activity. What do you attribute that to, besides, of course, your own terrific management?

EVERHART: Well, of course, seriously I think there are really two things. One of them is that I think the company has become more focused on operation, focused on operational excellence; as well as just managing the company from a more rigorous business standpoint.

But, the second thing is the market has also evolved. When I first came into the company, it is only fourteen months ago we would be excited if we got a thirty to fifty reader order or a million tag order.

Today we have closed business where we had tens of millions of tags in one company, one order, and we have had thousands of readers. And so, it has evolved. I think basically what that shows is companies have gone from the classic piloting stations to some implementation. There are still a whole lot of pilots out there; but I think the market has matured, absolutely.

There are real companies focusing on real ROI from the solution point of view. I think that is the other thing that has changed within the market, somewhat. And I think certainly we, as a company, are focusing on it.

That is not to get overly amorous with the technology, but getting amorous with the solutions. That is why people will pull out their wallet, and vote with their wallet, when they think there is a solution.

To learn more about Alien, attend their April 3rd webinar, "Save big money tracking small assets with RFID."