VDC Research: Embedded Microprocessor, Board & Systems Market Blog

At the Design West – Embedded Systems Conference 2013 – Part 2

In this blog we will continue to provide a few more highlights from the suppliers we spoke to at the 2013 DESIGN WEST / Embedded Systems Conference that was held last week in San Jose.

Small Form Factor Motherboards: At the VersaLogic booth we were shown several of their new small form factor motherboards, including the EBX format Copperhead that is powered by an Intel i7 processor and can support up to 3 independent displays. We also saw their COM Express Mini format Falcon and EPIC format Iguana that are powered by Intel Atom processors. The Iguana boards have a Mini PCIe card socket that allows an OEM to round out its configuration with a wide array of connectivity, storage, and other options. All of the Versalogic products we saw at the show were designed for extremely high reliability in operating temperatures that extend from -40C to +85C, and many of them can be ordered in Class 3 assembly versions for mission critical applications.

Computers-on-Modules (COMs): At the congatec booth we saw the variety of COM product lines they offer including Qseven, COM Express, ETX, and XTX. If customers require high power COMs in passive cooling configurations, congatec has patented spring loaded heatspreader thermal interfaces that pull heat away from chipset components and transfer it to the edge of the module. Depending on the OEM application, many of the congatec Qseven products can be ordered with x86 processors from AMD and Intel or ARM processors from Freescale.

Development Platforms: At the ST Micro booth we visited with Ayla Networks who were demonstrating their proof-of-concept secure M2M cloud connectivity solutions with the STM32 F3 evaluation platforms representing connectivity targets. We expect to hear more from Ayla in the future, and you will likely be reading about them in our blog. At the Texas Instruments booth we were shown the new BeagleBoard Black open-source development platform. This impressive unit sells for only $45, and has a 1 GHz ARM A8 processor, 512MB of DDR3 RAM memory, and an on-board HDMI. The BeagleBoard can be expanded for multiple applications by using BeagleBone “capes”. There were multiple applications highlighted, including a remotely controlled electro-mechanical spider that had been fabricated using 3D printed parts.

Ultra Low Power MCUs: We noted that ST Micro had won an EE Times / EDN ACE Award for its Fully-Depleted Silicon-on-Insulator (FD-SOI) technology that allows devices to run using 20 – 50% less power. On a similar note, Renesas was demonstrating the power sipping ability of its RX111 group of MCUs that can wake up in 4.8us from a sleep mode, where it only consumes 350nA. In addition, the RX111 has 6 safety functions to verify/ensure that the device and supporting circuitry are working properly.

Industrial SATA III SSD: The VDC team met with Innodisc and learned about their new SATA III line of Flash Storage Products targeted at embedded applications in the industrial market.  These Innodisc products use arrays of lower-cost Multi-Layer Cell (MLC) memory chips to duplicate Single-Layer Cell performance and reliability at a significantly lower price point.

Embedded Certainty: At the XMOS booth we learned about their series of MCUs that were designed to remove uncertainty from critical applications. This means that programs can be developed where the signal timing is completely predictable. Roughly stated, the XMOS MCU have removed I/O layers and other elements that create signal latency or processing variables that can affect timing. There are many applications such as digital audio and collision avoidance that can benefit from MCUs with predictable timing.

Embedded Motherboards: As the VDC EHW team is currently in the midst of our supply-side coverage of the embedded motherboard market, we were particularly interested in seeing the two new SuperMicro X9DR products. Both of these units were extremely powerful and can be used in applications that require power-efficient processing of high volumes of data. SuperMicro also sells its products into the traditional IT space and, as such, has some system options that can be attractive to OEMs supporting mission critical applications. These include built in Uninterruptible Power Supply and automatic flash memory backup of system RAM and CPU processes in the event of a power outage.

Stay tuned for part 3 where we will wrap up our observations from the 2013 Design West show. 

M2M can Authenticate Actionable Intelligence for Hospitality Industry

During a recent conversation at VDC, the topic turned to a problem often seen by users of travel and restaurant advisor sites. It is often difficult to determine legitimate user ratings from those that were created by employees or competitors of the venue in question. We believe that Google, Apple, or another industry participant could mitigate this problem by using an M2M architecture solution. Here is how it would work:

 

The persons who would want to be authenticated reviewers of hospitality venues would register at a cloud-based site. The mobile devices they carry would be linked to their profile. The reviewers would have to opt-in to allow GPS and Wi-Fi location based tracking and logging.

If the reviewer wishes to submit a rating for a venue they log into the cloud-based application. The cloud based application verifies that the location data from the reviewer’s mobile device matches the pattern of a legitimate customer. If the verification passes, the rating and commentary are accepted. The identity of the reviewer could be obscured if needed but, if their reviews were found to be questionable, they could be disqualified in the future.  It’s not foolproof, but it’s better than what many of these rating sites have today.

A Big Week for Telecom in M2M - 2 Key Announcements

This week there were several interesting developments related to M2M and cloud services. The first was the announcement of an agreement between IBM and AT&T that effectively provides a comprehensive connectivity and cloud services package. Why is this deal significant? The primary answer is security. If there is one main barrier to M2M adoption, it is the concept of moving sensitive data through the internet. The other related barrier is about exposing a machine or thing to outside access through that same path.  One example of security loopholes would be a “man in the middle” access and this is highlighted in the recent US House Intelligence Committee report looking at the entry of Huawei and ZTE into the US market. That report examined the risk that data passing through the Huawei or ZTE equipment could be remotely disrupted by and/or hi-jacked to a 3^rd party which, in this case, would be the Chinese military.

 In a recent VDC survey on the embedded cloud that examined the use of edge computing to support M2M connectivity, we found that security was cited as challenge to implementation by 25 – 30% of respondents. This was significant when we considered that, in addition to the typical edge processing roles of communication, data aggregation and pre-processing, 49% of IT and End-Users surveyed would include firewall/Virtual Private Networking functions in those units. In other words, you can never have too much security.

M2M connectivity often involves cloud based resources and after the connection from the machine to the edge of the network is solved, you then have to make the connection to the cloud. The IBM & AT&T collaboration will give potential customers a secure private connection to the IBM cloud services. The customers will get an integrated solution without having to deal with two completely separate organizations to complete the implementation. This is of huge value to the M2M market because many of the machines/things being connected are mobile and this places extra layers of wireless connectivity in order to complete the M2M solution.

Speaking of mobile equipment connectivity, this brings us to a second notable announcement from this week. On Tuesday, we saw that Digi International had announced collaboration with Deutsche Telecom to enhance their M2M solution portfolio. As part of this agreement, Digi will be the first to integrate DT industrial grade SIM cards into their connectivity products. This removes many layers of complexity in a mobile M2M project as the complete solutions can likely be installed directly out of the box and automatically connect to the Digi cloud services using the DT cellular network.

So, in summary, we see two very similar partnership announcements that are changing the M2M ecosystem in ways that will accelerate the pace of m2M connectivity. This is precisely one the theme of the VDC FastForward: Insights for Leaders report on Securing Your Place in the Evolving Internet of Things Ecosystem that is due to publish shortly. In 4Q of this year, the Embedded Hardware practice will also be covering the OEM perspective of M2M and the Internet of Things through our Voice of the Customer service.

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

Channels of Distribution Expand as Computers-on-Modules Market Grows

Our Embedded Hardware and Systems research team recently published critical global findings of the rapidly expanding Computers-on-Modules (COMs) market.  Based on our analysis, COMs dollar volume shipments over the 2009 - 2014 forecast period are projected to grow at a rate faster than nearly all embedded hardware technologies which VDC analyzes.  In fact, based on extensive supply-side and demand-side primary research, we are forecasting the total global COMs market size will reach just over $910 million by 2014, and display a compound annual growth rate (CAGR) exceeding 23%.  

Among the clear drivers of COM shipment growth are (1) the system expansion and application-specific customization capabilities of the technology, and (2) the relatively low power consumption and small form-factor dimensions the technology possesses.

Another influential factor is time-to-market advantages OEMs, SIs, and independent hardware designers gain, as this audience continues to seek significant reduction in development time of embedded systems in industrial and commercial applications when utilizing COMs.                                    

From the channels of distribution perspective, our research suggests the marketing and sales of COMS will begin to fragment somewhat, as suppliers look to add more third-party distributors, VARs, and other resellers in an effort to capitalize on the expanding COMs market. 

In summary, VDC believes as the complexity of embedded hardware design and implementation accelerates, an ever increasing number of vendors - third-party distributors, and VARs, etc. - will continue migrating into the embedded space, with COMs and COMs-based solutions.  In fact, many large distributors have already begun offering development kits online, as well as offering other support services, that will help enable a more rapid solution development cycle.

Let us know your thoughts about global COMs market opportunities and how the channel will impact pricing, availability, and hardware and software integration.

Embedded Processors Market Paradox: Move Fast, Maintain Stability

VDC Research recently launched the infrastructure development phase of our 2010 edition of our Embedded Processors market intelligence program.  This year, we will be concentrating on, and attempting to reconcile, two of the most powerful trends in the embedded processing platform marketplace:  solution stability and platform migration. 

The root of our work on embedded processing platforms has always been the embedded CPU market segment.  And while we have looked at competing and complementary technologies consistently over the years, 2010 will be the year that we dive a little deeper into a number of processing platform alternatives and complements to embedded CPUs. 

Specifically, we will be looking at where, why and how embedded systems developers are evaluating and selecting among and between embedded CPUs, DSPs, FPGAs, MCUs and associated processor IP segments.  While it is not knew for us to provide coverage of these markets, including platform-specific analysis in leading CPU segments, this year we will be bringing that depth to other technical segments as well.  Perhaps more importantly, we will be complementing our analysis WITHIN technical segments, with analyses of issues, forces and trends ACROSS technical segments. 

Examples of issues that we will exploring include:

1. Migration within the CPU segment to lower-power platforms.  This trend is not new in some segments.  Harder to believe in others.  Embedded systems developers are constantly looking demand lower power processors.  And since the green movement and the recession begin touching the embedded markets, power management only became more acute.  We expect that power management will continue to occupy top tier placement on embedded roadmaps for the next 2 or 3 design cycles. 

In the CPU segments, Intel ATOM will battle ARM head-to-head in the gray areas between deeply embedded systems and commercial grade (and consumer) applications.  VIA Embedded and AMD will likely invest heavily in technical support for market expansion behind their Nano/ C7/ Eden and Geode lines respectively.  And Freescale will launch new methods of defending its core communications infrastructure and military/ defense/ aerospace positions against incursion of X86 platforms. 

In the FPGA segment, suppliers are going so far as to implement MCU cores inside their FPGAs for provide more powerful and lower power alternatives. 

2.  FPGA adoption is expanding ... rapidly.  The advent of lower-power FPGAs implementing soft CPU cores has been fairly well covered at the highest level.  However, as we cover the market bottom up ... application by application ... we see this happening more broadly, and more rapidly than most of the published analysis and commentary recognizes. 

The breadth is so expansive, and the pace to rapid, that we are advising the majority of our clients to begin framing -- if they have not already -- their FPGA strategies.  And where our clients are investing to take advantage of FPGA migration, we are advising them to consider this opportunity on of few that might be worth an aggressive stance.

Every project we have supported over the past two years supports our view that FPGA migration is, or will be, an important part of post-recession market development in a number of embedded market segments. 

As part of our last syndicated Embedded Processors program, we built a sample of more than 200 extremely highly qualified embedded system engineering manager survey respondents.  The rate of investment to support investigation of FPGA migration was 45% for DSP or ASIC users, and more than 51% for CPU users. 

The 2010 Embedded Hardware Market Intelligence program expanded the aforementioned sample to over 400 extremely qualified respondents.  Sample findings from that work included a virtual doubling in the expected rate of adoption of FPGA with soft CPU cores during the next 5 years.  In some verticals and applications, the rate of growth was even faster. 

The embedded systems markets continue to offer exceptional growth and margin opportunities for those rare embedded technology suppliers that can provide their customers with accurate, rapid migration support, and bulletproof solution stability that their customers demand. 

For more information on this program, please visit:  http://www.vdcresearch.com/market_research/embedded_hardware/product_detail.aspx?productid=2637

Outlook for Embedded Communications Market Improving

VDC has just completed the Communications market module of our 2010 demand-side research for embedded hardware platforms. In this research we surveyed over 125 communications infrastructure and networking infrastructure customers (OEMs, SIs, VARs, ISVs, etc.) on their current product/vendor requirements and buying expectations for embedded hardware platforms. The survey respondents were tightly screened and only decision makers and influencers responsible for purchasing or recommending embedded computer boards or embedded integrated systems were allowed to participate in the survey.
    The communications user data revealed that 2010 is shaping up to be a year of market stabilization following the downturn of 2009. Just over half of the communications infrastructure respondents indicated that they expect their company’s spending on embedded computer boards to be flat in 2010 compared to 2009. More encouragingly, 47% indicated that they expect an increase of some level in 2010 and only 2% expected a decrease of any amount.

The outlook for changes in spending on embedded computer boards beyond 2010 was even more positive with 75% of the respondents expecting a year over year increase in embedded hardware spending for 2011 and 72% expecting a year over year increase in 2012. Clearly the embedded hardware market is on the mend following the harsh downturn of 2009. A major driver for the increasing spend on embedded hardware in 2011 and 2012 will be the rollout of new 4G networks and the infrastructure investment that will require.
    For more information on VDC’s 2010 demand-side analysis reports on the communications segment and other vertical markets click here.

Uncovering Embedded Hardware Customer Requirements - Q1 2010 Survey Results Redux

We recently collected some data from users, specifiers and buyers of general purpose embedded computer boards, integrated systems and solutions.  The sample, made up of more than 50 Tier 1 and 2 OEM customers, is a strong representation of core markets and users and very accurately reflects the present views and attitudes of embedded hardware customers. 

We discussed the findings from this survey in a webcast yesterday (recording available here) and we're posting the slides, with some of the results, below for you to browse. 

We're still collecting data, so if you have not taken our embedded hardware user survey, or if you would like your customers’ voices to be heard, please go to, or send others to our survey link. The final dataset will be included in our demand side research reports.

Uncovering Embedded Boards & Systems Customer Requirements

View more presentations from VDC Research Group.