VDC Research: Embedded Microprocessor, Board & Systems Market Blog

Extracting Elusive Value from the Embedded Cloud – A Consumer Perspective – Part 1

As part of a series supporting the recently published M2M/ Embedded Cloud reports, I explored a few M2M benefits for the industrial machine markets and wind power industry. As I extend this blog series, I wanted to look at a few ways that Machine to Machine M2M connectivity can provide many benefits to consumers in their everyday life and, as a result can provide more revenue opportunities to the businesses that embrace this new age of embedded cloud M2M connectivity.

A Rich Environment for M2M Connectivity: 

Appliances: These days most appliances have, at the very least embedded processors. As I mentioned in a previous blog from the ESC/Design West show, suppliers such as Inside Secure, Lantronix, Silex, and Texas Instruments and others give appliance manufacturers many options to have their products connect to networks and mobile devices.  These M2M features could act as a driver for new product sales but, also a method of increasing service revenue from field upgrades.

Mobile Devices: Most consumers or, at a minimum, at least one person in a household have very capable mobile products that can be used as Human Machine Interfaces (HMI).  Therefore, many appliances could have the capabilities of a dedicated full featured panel and keyboard interface without having the expense of adding that hardware.

As part of this blog series, I thought I would look at a few typical household/consumer activities as a place where M2M could deliver value to many stakeholders. In part 1, we look to laundry and a trip to the supermarket.  In part 2 we look to food storage and preparation.

Laundry a “Clean” Opportunity for M2M:

Smart Grid: In a residence that has a smart meter, the power used can be measured with respect to time with lower rates for off peak usage. Laundry is a task that usually has some flexibility in when it can be done. Using their mobile HMI, a person could program the washer/dryer to run during an optimal time period for lower power costs. In a full M2M configuration, communication between the laundry appliances and the grid operator through the cloud or directly to the smart meter could add the needed timing and precision.

Commercial/Facility: For those where in-residence laundry machines are not an option, M2M could provide benefits as HMIs could allow consumers to reserve Laundromat machines in advance or at least know machine were availability before in advance.  The mobile devices and M2M could provide other benefits like cashless transactions, locking the machines to prevent theft/tampering, and alerting the user that a load is complete.

A Trip to the Store with M2M:

Setting the Route: Let’s consider a consumer that has a shopping list that takes into account some food and other things they are planning to buy. The nearby supermarket specials have been downloaded onto their mobile device and an application coupled with an embedded GPS can provide the consumer with a cost effective and efficient plan to buy what they need at the best prices.  The consumer’s HMI also might have information about traffic and or what might be the best times to go to the store to avoid crowding and long lines. The consumer’s HMI could possibly help them find item locations in the store with the assistance of a store provided application.  All together, this  allows the consumer to spend less time shopping, get the needed items for the best price, and save gas/travel expenses.

Other Possible M2M Benefits:

• The supermarkets can level the peak demand for personnel and connect the customer to their goods to a degree never before possible.
• Printed supermarket fliers are expensive to produce and distribute and, they likely have to be planned far in advance in anticipation of items being available. M2M can make the system much more responsive if prime produce, meats or seafood are suddenly available or, unexpectedly not available.
• Consumers can avoid situations where the store they select is out of stock on an item that they need.
• Produce is an “experience good” in that sometimes you have to buy it and try it to see if it is really good. An application that would allow consumers to rate a particular batch of product would be really valuable to store owners as well as fellow customers. A store application could look at situations where customers buy a small amount of a product one day and return the next day and buy a lot more. This repeat buy index would be representative of a really good lot of produce.
• As the consumer is on the route to the store, their HMI might give them offers. Say for example their car has M2M and it needs an oil change and the supplier en-route has an open service bay waiting. That would be a win from many perspectives.

Summary: I see an environment where embedded cloud/M2M connectivity will be increasingly added to things like appliances, and automobiles. Using mobile devices, and automotive infotainment systems as HMI, many benefits can be seen by the consumers, manufacturers, grid operators, retail store and supermarket owners as well as other service providers. In many cases, these applications and the values created are real or easily achievable in the 2012/2013 timeframe. This is the recipe for success. Speaking of recipes, if you liked this blog, the next one will look at food products and how M2M and the Embedded Cloud can provide value with respect to the food products people buy and often throw out later.

Curtiss-Wright Controls Sharpens Focus

Curtiss-Wright Controls, parent company of Curtiss-Wright Controls Embedded Computing (CWCEC), announced on January 9 the formation of a new business unit, Curtiss-Wright Controls Defense Solutions (CWCDS). The new unit will incorporate both CWCEC and the firm’s former Electronic Systems unit. Ref. http://www.cwcdefense.com/media-center/press-release/50.htm

The ultimate parent company, Curtiss-Wright Corporation, was formed in 1929 through the union of fifteen companies affiliated with aviation pioneers Glenn Curtiss and Wilbur and Orville Wright. Today the firm, with annual sales exceeding US$ 2 billion, operates in three primary market segments: Flow Control, Motion Control and Metal Treatment. Defense-related products and services comprised approximately 40% of overall income, covered under the Motion Control segment.

Curtiss-Wright Controls, headquartered in Charlotte, NC, is the Motion Control segment of the overall company. Both the former Embedded Computing and Electronic Systems units were part of this group.

Curtiss-Wright Controls Embedded Computing (CWCEC) was formed in 2002 through the acquisition of certain assets of Lau Defense Systems. Over the next several years, CWCEC grew to be a powerhouse in the military/aerospace segment of embedded computing, particularly on the merchant boards side. Growth was both organic and via acquisition. Succeeding acquisitions included Collins Technologies, Peritek, Systran, Novatronics, Dy 4, Prima Graphics, Synergy Microsystems, Indal Technologies, Pentland and Vmetro asa.

Military, Aerospace and Defense has, historically, been not only a primary market for CWCEC but also one of the fastest growing and most stable segments for merchant computer boards, in particular. In 2010, this market segment accounted for US$ 694 Million in shipments; this is projected to increase to US$ 912 Million in 2013. CWCEC was the number one supplier of boards to this market segment, with a market share of substantially greater than 17%. GE Intelligent Platforms was number two, with a market share slightly above 14%.

However, the projected 131% 2010-2013 increase in Mil Aero board shipments is actually less than the projected shipment growth for boards in general – 153%. Even this may prove to be optimistic, if certain massive cuts proposed for the military budget are implemented. Therefore, suppliers to this segment should be pursuing aggressive marketing and customer service policies in order to grow not only market share but actual shipments as well.

The establishment of the new Defense Solutions business unit within Curtiss-Wright Controls will not only address these issues, but will also produce a larger, yet more nimble, operation. It will also provide a sharper focus to Curtiss-Wright’s embedded efforts, targeting bread-and-butter elements of the business and reducing distractions from less critical aspects of the business.

Extracting Elusive Value from the Embedded Cloud

In the past few months as work progressed on the VDC Embedded Cloud report, I posted a few blogs on classic examples of M2M connectivity and the values that can be obtained by many stakeholders. Even so, I believe many M2M cases do not fully extract all of the value that can be obtained by that connectivity and, in particular, the data that is collected, processed, and stored in the cloud. In this blog, I thought I would explore in more detail two examples of M2M connectivity to look for that elusive added value.

M2M Example 1: Semiconductor Tester - The latest versions of Advanced Mixed Signal/System on Chip testers have to perform faster than the chips they are testing and are likely using liquid cooling systems. The timing of the digital channels have to be perfect and, at the same time, precise analog sourcing and capture channels are needed for the many analog functions found on the system on chip devices they are testing. These testers are typically on isolated networks as device speeds, capabilities, and product yields are highly confidential particularly during product development. These testers are typically used 24 x 7 and downtime is particularly expensive.

If that semiconductor tester could be connected to the suppliers cloud service, significant value can be seen by all participants especially the owner. The cooling system would be a prime example. In many cases these are closed loop systems and a low level of flow or coolant and/or a high temperature reading can shut the system down automatically. If these sensors could be polled and the data stored and processed, the system owner or supplier could be alerted to possible problems before they cause a shutdown. Small coolant leaks could be detected and mitigated before they cause issues. If the data were made available to coolant suppliers, they could proactively deliver new stock on a just-in-time basis.

Semiconductor testers can generate a lot of data in the process of calibrating and testing themselves. If that self-test and/or calibration data were moved to the cloud it could provide more value by using processes that compare past results with current ones. Even tests that pass in both cases can be statistically evaluated to look for drifting toward limits. In this way, a digital or analog channel boards could be removed before they failed in the middle of a production run.

Now, we will take it up one more notch. If the self-test data from all of the tester supplier’s customers were aggregated in the cloud they could provide even more value particularly in cases where failures occur. By comparing the data from a current failure with those that happened in the past, it is likely that a root cause is already known and therefore can be quickly applied by the service personnel.

If you think that this is all the value that can be extracted from this case of M2M, you would be mistaken. If the semiconductor tester could sense that another machine in the test cell was down, it could run its own self-test programs to take advantage of the lull in the action. If a time based calibration was needed in the near future, it could pull that in as well. In the failure cases noted above, the cloud based data could be used in a Failure Reporting and Corrective Actions System (FRACAS) which might identify problems with a particular component or batch of components. This type of data could be filtered and shared and the benefits would be seen by multiple OEMs as well as component suppliers.

M2M Example 2: Wind Turbine - In some cases, wind turbines are individual units and, in other cases, they are part of a large array of units. This can represent a very fragmented deployment as large arrays are likely in remote areas and single units are very spread out in more populated areas. This makes the service model a lot more complicated both in regards to equipment and personnel. From a personnel perspective, you need expertise in electrical, mechanical, and aeronautical systems. The fact that they are so large and high also requires crane and rigging and heavy construction expertise as well.  If the array is located offshore, that is another area of expertise that might be needed. From what I know, wind turbines don’t fail that often but, when they do, the convergence of material and expertise needed to fix them can be costly with respect to downtime and expenses.

M2M connectivity could benefit wind turbine installations by providing them with advance knowledge of wind gusts and anomalies for which they could adjust in advance. There are lots of sources for this kind of data from satellites, radar, and sensors located in many places. Aggregated and processed in the cloud, they could provide actionable intelligence for a turbine operator. On a similar note, this type of aggregated data is of high value to grid operators as they need to level out the supply of wind-generated electricity with the demand of the customers.

As in the semiconductor tester, I believe there are several ways the service model I discussed could be made less expensive. A wind turbine is likely chock full of sensors that detect motion, position, and most importantly strain on components. The rotating blades are very heavy but need to be balanced and oriented precisely. If the data from the turbines are moved to the cloud, degradation of components could be detected before outright failure.

Now, we look to a higher derivative value of the aggregated wind turbine data. If a wind turbine blade begins to have a problem and the sensors detect it, the owner has a tough choice to make because of the logistics and expenses that could be involved in the repair process. If the owner, crane company, and/or repair crew, knew there were other wind turbines in that area that also had problems, costs could be shared. 

In the final embedded cloud M2M value derivative, the supplier of the wind turbine blades could use the aggregated data from all of the deployed turbines to learn more about strains and product failures to improve designs and production processes. If needed, they could begin to produce a replacement part on proactive just-in-time basis rather than having to maintain a significant inventory.

Summary: In both the tester and turbine cases we see where the primary stakeholders such as the equipment owner and the supplier that made it have tangible benefits from the M2M cloud connectivity. The interesting but sometimes less obvious benefits come from other data sources and where the equipment data can be used to provide benefits to other stakeholders. In each market, these secondary and somewhat elusive opportunities are there for the taking but only to those who look for them.

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 2012 Highlights - Part 1 The Embeddy

VDC attended the 2012 DESIGN West/Embedded Systems Conference in San Jose from March 27^th through March 30^th and met with more than 30 companies to discuss product announcements and a variety of industry trends impacting the embedded hardware market today.

I wanted to take a few minutes to thank the many outstanding people at the show that provided briefings to the VDC Embedded Hardware team. With our Migrating to the Embedded Cloud report in production, key trend elements we were especially attentive to included M2M connectivity of embedded computing products with cloud based services and infrastructure.

As the first part of this blog, I thought I would give some detail on the Embeddy winner. Then, in a follow up blog that will post next week I will highlight many other companies we met with and some of the new products and trends we heard about.

And now, without further ado, the winner of the VDC Hardware Embeddy award for the 2012 Design West / ESC show was Freescale for their Vybrid family of embedded controller solutions.

There were several things that impressed me about the Vybrid line. First of all there are several different combinations of features and performance that can be selected. This should make them very flexible and cost effective.

The second thing I noted was the heterogeneous architecture for the dual processors inside the device. One processor core was more powerful for the functions that needed it and the other processor core was more economical for less demanding functions. I would think that would make it an good fit in a world that is now demanding more embedded processing power while, at the same time looking for power economy as well.

Freescale looks to be providing product samples later this year and indicates that they will be ramping up production of them in 2013. It will be interesting to see how the market responds.

Embedded World 2012: Year of the Microcontroller

According to the lunisolar calendar used in many parts of Asia, this is the Year of the Dragon. During this often revered cycle, VDC visited Germany for embedded world 2012. Held in the city of Nuremberg at the Exhibition Centre Nuremberg, the event features displays of the latest embedded technology and attracts the leading vendors from all over the globe. It was an exciting show, with more than 20,000 attendees. After experiencing the myriad exhibits of embedded technology and getting a feel for the latest trends, VDC’s embedded hardware team would like to propose an alternative hypothesis: this is the Year of the Microcontroller.

Over the course of two days at the event, VDC met with a number of embedded hardware companies including ADLINK Technology, AMD, Atmel, Connect One, Echelon, Eurotech, Freescale, IEI Technology, Kontron, MSC Vertriebs, National Instruments, NXP, SEA, Xilinx and many more. However, one of the most active technology areas that VDC observed at the show was microcontrollers. Microcontroller companies with product announcements at the show included STMicroelectronics, NXP, and Texas Instruments.

STMicroelectronics unveiled its STM32 F0 microcontroller family which is built around the ultra low-power ARM Cortex-M0 (http://www.st.com/internet/com/press_release/p3275.jsp).  The goal of the new microcontroller family is to provide customers with new features that were previously only available at higher price points. This represents a pathway for these customers to migrate from 8-bit and 16-bit MCUs. With its analog features, the STM32 F0 is designed for fast rate sensing and control across multiple channels. Potential applications include industrial controls, building automation, computer printers, and a range of other consumer products. Through the use of the ARM Cortex-M based product, the STM32 F0 can free a customer from dependence on proprietary architectures and accompanying limitations.

Another company showing its microcontroller products was NXP. During the show, NXP announced its LPC1100XL, which also featured the ARM Cortex-M0 technology. This product expands the scalability of the overall processor family and makes power less of a design concern for embedded engineers. The LPX1100XL has “power profiles” which allow for real-time power management. The device also has 256 bytes of page erase which enables field updates without having to erase sectors to write the next page. Typical applications might be in consumer electronics, industrial control, and portable medical technologies.

With so many excellent products at the show and only limited time to see just a selection of them, picking a favorite is always a difficult decision. VDC typically looks for products that address the latest trends and drive cutting edge innovation. However, we must inevitably choose a winner, and so…

BEST IN SHOW AWARD GOES TO (DRUM ROLL):

 

Texas Instruments perhaps had the most visible product launch, with an inflatable promoting the Wolverine microcontroller just outside the exhibit hall’s entrance. Texas Instruments claims their MSP430 micocontroller uses fifty percent less power than any other microcontroller. The microcontroller utilizes a relatively new form of memory known as ferroelectric RAM (FRAM). This memory is non-volatile and helps bring down the power consumption of the overall microcontroller as a result. The design also incorporates ultra low leakage (ULL) process technology. One potential application of this equipment would be wearable medical monitoring technology. Another is sports monitoring equipment that can be attached to running shoes. VDC believes this product addresses many of the significant trends in the market: the quest for ultra low power in various use modes, the need for wearable technologies that do not interfere with humans’ mobility, the need for more innovative types of memory, and having a software ecosystem in place to support the product. Because of the innovative promise of TI’s “Wolverine” microcontroller, VDC designates the MSP430 as the best in show of hardware for embedded world 2012. 

Other microcontroller exhibitors at the exhibition included:

Arrow Central Europe, ATMEL, Avnet Memec, Cypress Semiconductor, Digi International, EBV Elektronik, Echelon, Freescale Halbleiter Europe, Fujitsu Semiconductor Europe, Integrated Device Technology, Infineon, Microchip Technology, Microsemi, MSC Vertriebs, Renesas Electronics Europe, Silica, Silicon Laboratories, Toshiba Electronics Europe and many others.

VDC is currently in the process of researching for its Track 2: Embedded Processing Technologies, Volume 1: Microcontroller Units (MCUs) study. We encourage companies to contact us with relevant product announcements and to set up briefings regarding microcontroller divisions.

Enabling M2M Applications to Cloud Services Using Scalable Edge Nodes - Part 1

During the ongoing VDC report on the embedded cloud I have been hearing about many different interesting Machine to Machine (M2M) applications including several that distinctly feature products that we consider as Scalable Edge Nodes (SEN). During the next few weeks, I thought I would touch on a few of these interesting application cases and what the scalable edge node brings to the table.

First of all, in this initial posting, I thought I would speak to what a scalable edge node is. To start, lets work with what it is not. There are many network appliances such as routers, switches, firewalls, and web servers as well as storage devices. These are not scalable edge nodes but, a scalable edge node might have some of these functions incorporated inside them.

The next question to address is why are these SEN products needed? SEN products are often needed to support M2M applications particularly with respect to cloud services. This is not to say that machines are not already connected. They are connected but these connections are very isolated industrial networks that are optimized for productivity and safety. Any connectivity beyond the industrial automation and/or process control network can be problematic. The Stuxnet case underscores the exact nature of the problems.
This is one area where a SEN can enable the benefits of cloud connectivity and services while mitigating many of the risks. Lets take a look at this week's real world SEN example to underscore this benefit:

This week's M2M embedded cloud SEN enabled application is Tomra's Tomra-Trac product. Tomra is a manufacturer of Reverse Vending Machines (RVM). These are the machines you find at stores in places where bottle/can deposits are taken at the point of sale. The consumers return the empty cans and bottles in order to get the deposit back. These machines automate the process and shred/crush the returned units to minimize the storage space needed. For minimal security, these RVMs need to be connected to the store's network to allow the issuing, validation, and cancellation of the refund receipt's barcodes. As these RVM machines often sit in peripheral locations without a lot of oversight, there are some security risks to these connections to the store's network that can be mitigated by the use of SEN type products like Tomra-Trac.

The Tomra-Trac product helps solve this security problem and, at the same time, adds cloud based services. If a beverage manufacturer comes up with a new product, the RVMs can be securely updated frequently to recognize the new product's bar-code. In RVMs that sense product profiles in order to detect counterfeits, these parameters can be updated if manufacturers change their can/bottle sizes and/or shapes. The Tomra-Trac allows the store management to remotely track the status of the machines which can save them money by only assigning personnel to RVM tasks when needed.

Tomra can also provide better, more cost effective service by polling the RVMs for potential problems and minimize downtime by proactive or prompt reactive service. So there you have it, a SEN allowing safer/secure M2M connectivity and providing benefits to the store as well as Tomra.

The Embedded Cloud – A Logistics Based M2M Solution to Many Worldwide Problems

As we read the news on an almost daily basis we see stories where counterfeit and/or inferior products are being sold to unsuspecting consumers and companies.  In other similar cases, the products are correct and/or close to what they should be with respect to quality and identity but their places of origin have been misrepresented. Then, we have the cases where products have been mishandled or contaminated but tracing them back to the sources is almost impossible or at least time consuming. Lastly, there are always concerns about the control, tracking, and inspection of cargo at ports of entry. So, in summary there are global concerns including health, safety, ecology, crime/fraud, and economics that could all be addressed by the embedded cloud.

In some industries like Pharmaceutical, there are new systems/solutions coming into play that use elements of machine to machine (M2M) Embedded Cloud connectivity. At present, what is lacking is a global, fully comprehensive system that tracks all types of products and materials from their sources all the way to where they are used in manufacturing/processing and/or sold to the end customer.

How would this comprehensive system work and how would M2M embedded cloud technology enable this? Let me show you a hypothetical solution that uses M2M connectivity in many cases aided by units we call Scalable Edge Nodes (SEN). The process would involve several steps as outlined below:

1.)    As a key to the whole process you would have to have a Global Certification Agency (GCA). This organization would have many standards for data tags, RFID, and Barcode as well as reporting units. This organization would be responsible for the tracking and reporting but the infrastructure could possibly be delegated and/or outsourced.

2.)    Next, you would have to have a source of certified RFID/Barcode tag products. These tags could be constructed in many ways to allow tamper detection and also include many sensing/detecting elements.

So, at the first stage, you have (GCA) certified manufacturers of these RFID / Barcode tag products and there would be M2M connectivity between the machines that manufacture the tags and the GCA to ensure each tag has a unique combination of RFID/Barcode serial number.

3.)    At this point in the process, the tag manufacturers then sell the tags to GCA certified suppliers of a given product. This transaction and the physical transfer of these tags would be tracked by the GCA. If the shipment of tags went astray, they would be revoked by the GCA.

4.)    The certified supplier of a given product wants to make a shipment and they register it with the GCA as being some quantity of a specific grade of product and link it with GCA certified tags/seals as appropriate.

5.)    Throughout the shipment process, each transportation/handling company would be certified by the GCA and have M2M connectivity to record scans of products as they pass. Coordinated systems between the RFID sensor tags on the products as well at the transport/storage systems would ensure proper handling and traceability through the system.

6.)    If, at some stage(s), the product is used by a manufacturer to make another product or divided by a distributor/retailer. In each case those entities would be registered by the GCA and have M2M connectivity and, if needed, new tags for their outgoing products.  The GCA would prevent or, at least flag cases where certified outgoing shipment of products exceeds the certified incoming products. The manufacturer, distributor, and/or retailer could also verify that the goods had not likely been damaged or had not deteriorated during transport.

7.)    Finally, the product makes its way to the end user / consumer.  They could scan or enter a bar code on the product and see many things. Where did their medicine or seafood product come from? Was it fresh/handled correctly? Is a product really 100% organic? Did it come from a sustainable “Green” ecologic source? Is the DVD or handbag they purchased legitimate or is it pirated / counterfeited? Is the wood in the chair really mahogany? Many, if not all of these questions could be answered with reasonable assurance.

Is this process possible? As mentioned previously, some industries such as Pharmaceutical have some ongoing efforts.  Even so, the market for these types of products/systems is extremely fragmented.  In other industries this type of M2M system is virtually non-existent. This is where scalable edge nodes could help de-fragment the industry by converting existing data formats/standards to the unified GCA standard that would be used in all markets. Then the markets can flourish based on a unified set of standards and systems.  In my opinion, a global unified M2M embedded cloud system is the only way this works.

In conclusion, the GCA system would allow competition with regards to the RFID/Barcode tags as well as the embedded computing and M2M sensing and transmitting / networking products. Product suppliers and logistics/transportation companies could also compete based on the extent and quality of their M2M systems. Would the globally unified GCA system be perfect? No, it still relies on the human element of someone certifying that a product or material they ship/sell has certain properties or attributes. The GCA system would, over time, allow the people that cheat to be identified and de-certified as well as in certain cases prosecuted. At the same time, the benefits to those who are in compliance would be extensive.

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.    

Security concerns represent a market growth opportunity for Embedded Cloud

As I am now working on the latest VDC report on the Embedded Cloud, I have great interest in how suppliers and their customers can take advantage of market opportunities. One obstacle to adoption by many IT and business executives has been security. This concern springs from the idea of sensitive data being transmitted over the cloud. The current VDC report looks at edge node devices that can be used to facilitate connections while, at the same time adding security layers. In my opinion, the weak spots of traditional computer network and file security architectures actually represent a market opportunity because of major differences in structure and security. Yesterday’s MSNBC World News Article highlighted 4 recent mishaps where UK government documents and/or data were lost at least temporarily and in one case actually published.

The lost materials were contained in printouts, laptops, and/or portable media. Even though secure information needs to be readily at hand for those that need it the computers they use to access it are not always in fixed locations with secure networks. It is safe to say that in most cases, even at sea or air, network connections are increasingly available 365days x 24hrs. This is where the embedded cloud architectures can address security issues. With embedded cloud architectures mission critical documents and data do not typically live on portable media. If they do, they are strongly encrypted and the keys are transmitted securely. A user has to present credentials (often biometric) in order to unlock and use/view data/files/documents. A lost laptop or person that becomes un-trusted can be locked out instantly. Biometrics and security questions can eliminate passwords that can be guessed or, possibly written down by the user.

From what I understand, many consumer devices use a similar cloud enabled strategy where purchased materials are stored centrally and secured copies are on the portable device. A loss of the device through theft or malfunction does not mean a loss of the material. Additionally, networked and embedded devices serve as waypoints of access to enterprise networks. Surely these new embedded cloud enabled architectures and devices should draw some interest in the security conscious markets.