VDC Research: Embedded Microprocessor, Board & Systems Market Blog

Alcatel Lucent and Radisys New Product Strategies to Drive Embedded Networking Shares

Yesterday’s  news of Alcatel-Lucent attempting to gain share of the lucrative Core Router market with the introduction of the 7950 routing system is making things interesting.  This new 7950 product line would be leveraging their market share in the edge routing market in order to compete with Cisco and Juniper for a share of the core market. The new 7950 system is claimed to have a 400 Gbps processor capable of handling 70,000 high definition video streams. While this capability is impressive it is also worth noting that it achieves this at a much lower rate of electrical power usage.

The question is whether this huge leap in capability and efficiency is enough to have the major telecoms consider a heterogeneous architecture with the new products coexisting with the incumbents or make the leap of faith to committing to the new Alcatel Lucent product line. No doubt Cisco and Juniper will have products in the pipeline as an answer but the timeline for these being released is uncertain.

One way that Cisco and Juniper can defend their shares is by developing the new products as backwards compatible with the installed base or, at a minimum to the system/backplane units being sold today. That is to say that the new blades/modules could be inserted in equipment/racks that their customers already own or are available today. Otherwise, a complete platform/architecture shift removes a barrier to entry for other companies like Alcate-Lucent. As an example,  we recently observed a new T-Series Radisys 40G ATCA platform introduction where they had employed a flexible compatibility strategy. From what I understood, their customers could introduce the new blades while not having to mothball the older ones until all the slots were filled.Until the new Radisys products shipped, their customers could continue to expand their systems without worry that they would be rapidly obsoleted.

As VDC begins its exciting new research project looking at the Rich Media & Big Data markets we expect that there will be many interesting findings and these recent and anticipated new product offerings certainly are evidence of that.

Intelligent Opportunities: Rich Media and Big Data Reshaping OEM Requirements and Business Models

The Internet of Things. Intelligent Systems. M2M. These terms are now commonly heard in the world of embedded computing. And one of the most important related trends, often erroneously associated exclusively with enterprise computing, is that of big data and rich media.  The explosion in the number of devices, the connectivity between them, and their ability to generate large and continuous data streams from sensors, cameras and a range of I/O devices will fundamentally reshape the world in which we live and the embedded computing industry.   

Gathering, securing, transmitting, processing, analyzing and storing this exploding torrent of information represents a huge challenge for existing infrastructure but a great opportunity for providers of network and cloud infrastructure technology such as Cisco, Huawei, Alcatel Lucent, and others. As the embedded market moves towards all-IP networks, these companies are well positioned to supply the necessary solutions to meet next-generation infrastructure requirements for both communications networking and M2M. For example, Huawei has developed a cloud strategy involving partnerships with companies that offer cloud services as a highly scalable platform for delivering and managing them. Based around embedded software, Cisco’s Video Analytics solution allows customers to classify recorded events and also count people and objects. This would allow an embedded customer to monitor its facilities more effectively and with less security personnel. These are just two examples of how embedded cloud services and video analytics are being enabled. However, this rich media and big data trend is not just limited to the networks.

The impact of this trend also extends into the end devices themselves. The embedded hardware being deployed for enabling rich media and big data spans the spectrum from embedded processors to integrated computing systems. For example, Intel has released its Xeon Processor E3-1200v2, which has the capability of encoding and decoding simultaneous video streams and can serve in a variety of vertical market segments including communications devices, gaming platforms, digital security surveillance applications and more.  At the embedded systems level, Radisys recently partnered with Arkadin to provide media servers for Arkadin’s Cloud Collaboration Platform, which delivers conferencing services through a global-IP network.

So the fundamental question for OEMs is not just how the demand for rich media/big data is influencing system requirements, but also how this new functionality and intelligence translates to new business opportunities/models. This question is at the heart of VDC Research Group’s upcoming market research series: Voice of the Customer: Rich Media and Big Data in Embedded Systems.

Now is the opportunity to become a Research Influencer and help guide this research program’s final direction. For more information, please contact us.

Four Big Takeaways from the Design West / ESC Show

In this last ESC show related blog, I will summarize several of the discoveries and themes we saw for embedded hardware products. We had lots of great conversations and observed many product demonstrations and presentations. These four takeaways were some of the most interesting.

Disposable Products: Embedded device manufacturers are looking to provide units that minimize power use when operating and virtually eliminate any use when idle. What is driving this is the idea of products like smoke and/or CO detectors lasting for 10 years or more and then being disposable. This allows the units to use different power sources while eliminating battery clips, and simplifying enclosure designs.  If you take it a next step, you could see that some municipalities could ensure that every residence and business would have smoke/CO detector units installed and operational. This would save lives and money.

Microcontrollers (MCU) and Digital Signal Processors (DSP): Embedded computing has gotten a lot more complicated and one place that is representative of this trend is automotive airbag systems. In prior generation designs it was relatively simple in that a MEMs device or some type of impact sensor was connected to an MCU that would in turn trigger the airbag if a well defined set of go/no-go conditions were met. There were several problems that now make this architecture less feasible. Airbags are expensive to replace and, in some cases present dangers of their own. Therefore, you want to be a little more selective about when you want to deploy them. Cars now have multiple airbags and you only want to deploy some of them depending on conditions that might not be a simple MCU driven process. In summary, the airbag trigger process involves more sensors to detect passenger configurations and weights as well as impact sites, directions, magnitudes and whether the vehicle is rolling over. This is why VDC believes that the demand for DSPs in the automotive vertical market will be growing significantly.

Embedded Device Pin counts and Features: During the ESC show we spoke with many embedded controller and processor suppliers and were impressed with the amount of features and capabilities that are increasingly being integrated into these products. By doing so, in many cases it reduces the need for pins that would be needed to connect the device to other devices in a customer’s product. To the embedded device manufacturer this has many possible benefits as it frees up the pins for other functions or eliminates them completely.  Another tangible benefit would be reduced cost of test as the reduced pin count might enable more parallel testing. The design engineers at the customer have to be delighted as they have fewer worries about integrating peripherals and supporting devices and now, less demand for space inside the products they are designing. This is truly a win-win proposition.

Embedded Cloud / Microstrain: In their booth, the CEO Steve Arms was demonstrating their Sensor Cloud service. The demonstration was showing real time and archived data collected wirelessly from an array of sensors at a Vermont winery. This is a classic embedded cloud business model of a company setting up cloud services for customers. Agriculture is always a complicated business and the introduction of this type of service should help lower costs to farmers. Now, imagine a second derivative of the cloud data being aggregated and sold to the financial industry to support decisions about crop futures.

In a blog later this week, I will give some thoughts on the embedded cloud business model and the layers of value that can be extracted.

Design West / ESC Show Highlights - Part 2

In this blog I will continue to explore some of the VDC Embedded Hardware team experience at the Design West ESC show. We saw a lot of great product demonstrations along with some excellent detailed briefings and meetings so it’s difficult to boil it all down to a reasonable size blog but here we go:

AMD: We saw a number of embedded computer products from multiple manufactures that featured AMD processors. Many of these would be great for scalable edge node applications. Heard a bit more about the latest Opteron 3200 series of processors which will likely find many cloud based applications. While at AMD we visited partner Xi3 they have some really nifty looking cube type computers that can be deployed in array like structures. The concept they were showing was a datacenter on wheels.

Atmel: Was showing some new products that seemed really great for embedded M2M type connectivity but, according to the press material I received, the details are embargoed for another week or two.

Digi-International: Digi was a company we covered in the Migrating to the Embedded Cloud report that published this week so we really wanted to stop by and see if there was anything new going on.  What we saw didn’t disappoint as there was a lot of evidence about the partnerships we talk about in the report. Digi and Wind River were announcing a collaboration to deliver M2M wireless connectivity solutions using Intel processors. This is on the heels of a similar partnership that Digi has with Freescale. We saw that Digi was using another company’s embedded computer hardware products as part of the cloud connectivity demonstration but, as that partnership is not announced; I can’t write more about that now.

Integrated Device Technology (IDT): In this booth there was a very impressive demonstration of  serial RapidIO technology being deployed in a number of different companies’ products. This is very important in cellular 3G and 4G deployments. Despite being handled by different protocols, hardware and connection methods the data travelled end-to-end efficiently and, most importantly without being corrupted.

Imagination Technologies:  We saw some really great examples of their IP used in mobile devices and applications. As people become more ingrained with mobile devices, high resolution videos, and larger screen sizes, it takes some pretty complex systems on chip to make it work. The difficult thing is getting the needed performance while not sucking the mobile equipments battery dry.

Inside Secure: As the market for M2M is growing there needs to be ways to ensure of the identity of the machines and people being connected. Inside Secure gave us a briefing on several of their security technologies that can be embedded into products to address these issues.

Lantronix: As an OEM is making design decisions on new products or looking to update older ones adding wired and/or wireless connectivity can be a problem. Lantronix briefed us on several of their products where the connective capability can be added to new designs or even old ones on an as needed basis. Almost as a proof of concept, Lantronix produced xPrintServer using technology they usually sell to OEMs to allow Apple devices to directly connect to existing legacy printers using a downloadable app.

Microchip: The VDC Embedded SW and HW teams had several meetings with Microchip and we were particularly happy to have an opportunity for a great discussion their President and CEO Steve Sanghi. As this blog looks to be running a little long, I will give the special focus to topics we covered with Mr. Sanghi in a blog next week. The hardware team learned a lot about some of the new Microchip MCUs that are adding analog circuitry such as ADCs, DACs, Op-Amps, and Comparators.  This puts more functionality into a single package while, at the same time often reduces device pin count.

Micron: I saw a detailed briefing on the latest about the Micron memory cube product. The through hole vias on the semiconductor dies that make this design possible are interesting in themselves.

National Instruments: This was another company that is covered in the Embedded Cloud report and, we saw that the Compact Rio product has some new, even more compact, product lines extensions. In the booth there was also a mock-up of a Siemens smart grid transmission line breaker module. The N/I Compact Rio was part of the design in that it could capture and transmit events that happened on the transmission lines. One of the neat things is Siemens/NI project is that the breaker can be reset remotely.

Netronome: If you ever want to see a place where powerful embedded processors are used in large quantities in high volume applications, a network flow processor is a good place to look. These impressive units we saw inspect packets and move internet traffic at extremely high rates.

Power.org: An interesting talk with one of the Directors at the IBM booth to learn more about this organization that unifies standards among its members around the Power Architecture technology with a goal of making sure that processors and communications products work efficiently as the scale of connectivity grow ever increasingly higher.

Silex: We saw some product briefings on their connectivity modules. With respect to M2M connectivity this is pretty interesting if for example you are a product designer supporting a legacy product that you want to add M2M services to or, in other cases, you are worried that a particular standard fall out of favor, and you want the product you are designing to be future proof.

SuperMicro: They have a very large line of products and the MicroCloud product was particularly interesting to us because of the embedded cloud report where we had profiled SuperMicro.  The MicroCloud product impressed us with its ability to scale up as a cloud service and/or the amount of machines being supported in an edge node application grows.

Texas Instruments: TI had a lot to show us with all types of embedded hardware products adding GPS and motion sensing as well as Wi-Fi and other connectivity. Anyone that has taken a portable device with GPS applications into a building, large city, or tunnel will realize that these types of products have a waiting market.  We also got briefings on some new process intensive DSP products that are becoming increasingly important to many markets. This is one of the topics I will expand on in the next installment of this blog series.

Next week, I’ll give a few last high level takeaways about things we saw and discussed at the show.

Perpetual & Pervasive Consumer Engagement Platforms Shaping Semi Market

From TVs, twitter, and mobile phones, the amount of electronic information with which we are presented on a daily basis has exploded and we have become increasingly conditioned to want this information on a at our fingertips real-time basis. We have almost gotten to the point now, however, that we – as a society – have developed a Device Attention Hyperactivity Disorder. So within the retail automation, at the same time that we want a more immersive consumer experience, it is becoming both more difficult and important to capture customer attention and loyalty.

Now enters the role of tomorrow’s digital signage. What were once nothing more than transaction facilitators or static standalone advertisement platforms have become a rapidly evolving medium for consumer engagement and market intelligence. The digital signage platforms of tomorrow combine artificial intelligence and real-time analytics in order to enable the more dynamic and tailored experience retailers want.

Imagine a world where you are in a mall and walk into a store and a digital signage kiosk can sense your preferences and suggest products to you as soon as you arrive in the store. Then you are presented with a range of potential product options that you can scroll through. Meanwhile, the digital sign pings the stores servers, an associate is paged, alerted to your presence, and given a heads up as to what of the products you are browsing through in stock.

As some of you all know, this type of M2M interaction is already starting to happen in some retail settings. So what does this mean to the embedded supplier community?

For one, there are new revenue opportunities presented through the enablement of this rich, connected consumer experience, but there is also an opportunity for embedded solution suppliers and their clients to access additional marketing revenue paid by clients hoping to have their specific brand promoted first within the digital signs.

Whereas these new functionality requirements can certainly help embedded solution vendors diversify their portfolio of products and services, the evolution of the semiconductor requirements for these systems is also helping to drive change in this market. Not only do these systems have higher performance media and graphics processing requirements, but the semiconductor technology needed to support them is becoming available at increasingly competitive price points that are reinforcing market opportunity growth.

Connect with VDC Research Group at the Design West/Embedded Systems Conference 2012!

VDC Research Group will be joining the Design West/Embedded Systems Conference 2012 exhibition and conference.  During the conference, we will be presenting the coveted VDC Embeddy awards to a deserving product in each of the 2 software and hardware categories. To make sure your product is considered, please make sure that:

• The product is formally announced at the show or, has been announced as of January, 2012
• That the VDC Research team will be briefed on the details of the product by your show staff.

VDC’s Embedded Hardware Team will be arriving March 27th and will be at the conference through March 29th.  During that time, we welcome the opportunity to connect with attending vendors.  We look forward to explaining VDC’s research methodology, learning about your latest product releases, and discussing your market research and strategic needs.

If you would like to learn more about the show, please click here.

If you would like to schedule a meeting around Embedded Hardware, please contact:

David Laing, Senior Analyst, Embedded Hardware & Systems Practice, VDC Research Group at: dlaing@vdcresearch.com or 508.653.9000 x146.

Or

Chris Rommel, Vice President, Embedded Hardware & Systems Practice, VDC Research Group at: crommel@vdcresearch.com  or 508.653.9000 x123.

If you would like to schedule a meeting around Embedded Software, please contact:

Jared Weiner, Analyst, Embedded Software & Tools Practice, VDC Research Group at: jweiner@vdcresearch.com  or 508.653.9000 x143.

Media Processing: Unseen but Powerful

As I watched yesterday’s SuperBowl, I was painfully aware of each moment of the Patriots’ loss to New York. One thing of which I was blissfully unaware at the time was how much media processing was going on to bring me the crystal clear image on the massive HDTV in front of me. Media processing is what enables on-field action captured by NBC network’s cameras to be then consumed on a high-def television, or ultrabook, or smart phone, or tablet, etc. 

With the surge in connected devices, and in particular connect devices that can view video, the need for media processing is expected to increase dramatically over the coming years.  Not only that, but users are increasingly generating video traffic using handheld devices like smart phones. As the consumption and creation of video ramps up the flow of digital video traffic, the processors performing media processing have expanded from the traditional DSPs to include CPUs, GPUs, SoCs, etc. 

VDC will explore media processing in its upcoming embedded processor market research.  In May 2012, VDC will publish its Track 2, Volume 2: DSPs, GPUs, & Media Processors will take a deep dive into this technology-rich and fast-growing market. We will be reaching out to the leading vendors in each of these markets to learn their perspectives. If you wish to participate in our embedded processor research, please contact me:

Jonathan Hastings, Analyst, Embedded Group, Email: jhastings@vdcresearch.com

GE’s 4th Quarter: The Industrial Crystal Ball for Embedded Hardware in 2012?

General Electric released its 4^th Quarter 2011 earnings today. As many know, GE has grown from its humble beginnings in light bulbs to provide a spectrum of products from aircraft engines to financial services. While GE Intelligent Platforms makes embedded hardware, GE as a whole goes far beyond the world of embedded.  As a former GE engineer myself, I have seen firsthand the world-class technology GE brings to market. Since it is a global company with diverse industries, it is typically seen as a bell-weather indicator for the general economy that drives the vertical markets of the embedded industry.

So, what can we glean about the future of the embedded hardware markets from GE’s 4^th Quarter Earnings announcement?

First, off, CEO Jeff Immelt mentions “continued volatility for 2012” and restructuring GE’s business in Europe to match market conditions. Obviously, volatility is never a reassuring term. And the situation in Europe appears uncertain. VDC expects that this will mean fewer embedded hardware shipments to Europe, shifting the market share percentages towards the US and Asia-Pacific regions.

Total GE revenues for the quarter were $38 billion - down from many analysts’ expectations, and down 8% from the 4^th quarter of 2010. However, this was mostly due to the impact of GE’s sale of its majority stake in NBC Universal. GE is most likely making the right decision to focus on its core competency: industrial products.

But, GE’s global direction aside, what do their division results say for the future? Energy Infrastructure was up 16% Y-o-Y, which is promising. This energy infrastructure would have opportunities for a host of embedded processors, from smart grid applications to wind farms to gas power turbines. For GE, that meant $43.7 billion dollars in revenue. Lots of opportunities going forward assuming this kind of growth continues. Aviation and Healthcare were a more modest 7% growth Y-o-Y, but still over $18 billion in revenue for each segment. Surely there is some embedded hardware associated with that project revenue as well: microcontrollers into engine related equipment; CPUs, GPUs, and more into MRI, CT, X-ray, portable medical equipment, etc. Perhaps most impressive from a revenue growth perspective is Transportation: 45% Y-o-Y.  In 2009 and 2010, this segment posted revenue declines. 

What are the embedded hardware opportunities in transportation?  First, a closer look at what GE defines as Transportation.  This segment includes diesel locomotives, transit propulsion equipment, motorized wheels for off-highway vehicles, and a variety of other motor and system devices.  As the BRIC economies continue to expand, they are no doubt demanding a range of transportation technologies such as the ones GE offers, which all will likely require embedded hardware at some point in their deployment, so the opportunities for embedded hardware here are substantial.    

Quanta Case versus AMD Underscores Importance of Component/Assembly Testing - Part 2

In the last week’s blog we looked at the semiconductor manufacturing process and the various testing steps that happen as raw silicon is turned into finished devices. In this week's follow up we continue looking at the testing process on the product manufacturing side. Last week we noted that Quanta was manufacturing notebook computers. Because of this, I want to make two observations about the product designs and manufacturing process for notebook computers.

• Notebook computer suppliers are continually trying to make them as thin and lower cost as possible. This means that Quanta might not have been using sockets and could be mounting the AMD/ATI devices directly on the circuit board. This can be a potential problem in some cases where the device was exposed to humidity before being heated as part of the surface mounted device (SMD) process as it can cause device degradation that leads to future failures.

• SMD processes increases costs with respect to failures as repairing a SMD CPU or Graphic component on a computer motherboard with hundreds of densely packed conductors is time consuming, difficult, and the scrap rate of the entire unit can be high.

• As the issue cited in the lawsuit is thermal in nature, it is worth noting that a higher power device such as a CPU or graphics chip often require heat sinks/cooling features to avoid problems. This is another area where manufacturing problems could have been introduced as these devices need to have excellent heat transfer to the cooling feature. Thermal pastes and a process to ensure optimal surface contact between the device and heat sink are needed.

Now, we will look at a few key testing steps on the product manufacturing side.

1.) Incoming Test: This process is considered as being redundant to supplier testing before shipment. Product manufacturers used to commonly test incoming components but, due to cost reduction pressures, that practice is now very uncommon outside the Mil/Aero market. Although it is not likely relevant to the Quanta vs. AMD/ATI case, counterfeiting and other supply chain related cases where lesser specification devices are re-labeled make incoming test more relevant again even in consumer type product manufacture.

2.) Circuit Board/Module Test: The fully assembled circuit board or module is tested before it is embedded in the final product. Thermal transfer issues can be identified by the use of infrared, optical, and or sensors. Repairs are expensive for problems found here but, it is still far less costly than having the product failing downstream.

3.) Highly Accelerated Life Testing (HALT): This is one last type of testing process that might have mitigated AMD and Quanta’s issue at either the packaged device, module/circuit board or completely assembled product stage. The unit being tested is put through extreme levels of hot and cold cycles while also experiencing other stresses such as vibration and g-forces. In this way, a myriad of potential production issues can be detected before the product ends up in customer hands and/or is in a mission critical role that embedded computers are frequently placed in.

In closing, HALT testing is an almost de-facto step in Military products let alone ones that might be launched into space. In Quanta’s case, you would never do this with all of the units but certainly at least a sample of them. If Quanta did not do this, the brand owner should have.  It does seem like a mystery to me about why this case is happening. It should be interesting to find out where the process became broken or which steps were skipped. If something interesting does come to light in the future we will surely revisit this case.

Quanta Case versus AMD Underscores Importance of Component/Assembly Testing - Part 1

This week I read of the lawsuit filed by Quanta Computer Inc. against AMD and its ATI division. The lawsuit alleges that components that they sold Quanta turned out to have heat tolerance related issues that caused the laptops they were used in to fail. It seems a little strange to me that Quanta is the only company with the problem unless they are buying a unique product or batch of products from AMD/ATI. Even so, with a multi-layered testing process the type of problem claimed by Quanta should not happen. The facts of the case will no doubt be revealed if additional claimants come forward and/or the case goes to trial.

Quanta is a Taiwanese contract manufacturer of notebook computers. Since they are a contract manufacturer this means that most of the finished goods they produce are someone else’s brand. They compete on the basis of cost and reliability/quality to get business from the owner of that brand. The damages they are seeking would be from their production losses from needing to repair or scrap finished products and/or subsequent damage to the perception of their own corporate brand.

This case has great relevance to the embedded hardware markets we cover and underscores the importance of a multi-tiered testing process. Therefore, I thought I would share some insights from my 30 year experience in the automatic test industry. I can safely say that despite the perception that testing increases cost, the costs of failure go up significantly at each step of the process between wafer creation and when the finished consumer/industrial product is completed. As one might understand, the absolute worst case is when the manufacturing/design failure occurs in the finished product when it is in the hands of the end customer. How can this be avoided? In this blog, I will look at the manufacturing process for semiconductor devices and, in next week’s follow up, I will look at what happens on the product manufacturing side.

1.) Raw Silicon Wafer: Optical checks are used to look for impurities and surface imperfections before the wafer goes through the extensive chemical/photo process that creates the semiconductor product. This test is very fast and it can save you the cost of chemicals and lost production time.

2.) Wafer Test: The semiconductor devices are still on the round wafer. The wafer is tested by using a probe mechanism that makes temporary contact with all of its contact pads. The tester than makes fairly extensive tests to make sure that the device is worth packaging. Tests can be made at various temperatures as part of this test cycle. In some cases, higher temperatures are used to speed up testing.

3.) Package Device Tests:

• Quick continuity and resistance tests are made to make sure the wire bonding/connecting process between the individual semiconductor dies and the package were good and that the device does not have any major faults.
• More detailed tests are then made to ensure the device works perfectly. Several cycles may be involved with the devices being subjected to high or low heat and less than optimal input voltages. The ultimate goal is to subject to the device to similar conditions to what it will see when it is installed in the finished product.

If the device passes through all of these testing steps, it is then further packaged for safe transport and easy assembly into the circuit board by the company like Quanta.In next week's follow up, we will look at what happens on the product manufacturing side.