Is 2-D DataMatrix barcode a serious competitor?

As the price of RFID tags are still too high for many companies looking for tracking Technologies, a series of other competing Technologies are trying to catch up and one of them is 2-D DataMatrix barcode.

In the past, some problems regarding the use of traditional barcodes made companies migrate to RFID. Among those problems, it can be mentioned that, the dirt, water and humidity rendered many of the codes unreadable. On the other hand, high cost of RFID tags, software and high-end enhanced readers was also a challenge which still exists today.

By the way, some companies such as ImageID Ltd., with their 2-D DataMatrix barcode solution, claim that they have combined best of the two world and offer reliable, low cost tracking technology. I myself am not quite sure that whether this is a serious threat for RFID or not in the long run but it may definitely be in the short term till RFID tags become cheap enough to dominate the market. What do you think?

(The post is originally written by the author in RFID-Weblog)