On Target: Embedded Systems

Embedded Project Starts Expected to Increase Year-Over-Year

Every year VDC conducts an extensive worldwide survey of embedded engineers and their development projects to better understand engineering requirements, preferences, and trends. This information is available from VDC in unique cross tabbed reports to offer readers a detailed, in-depth, view of engineers in the development project trenches.

Quite frequently we receive requests from suppliers of the embedded community for statistics around company project starts as this metric is often seen as an important indicator of health and growth for the embedded industry. Based on VDC’s 2011 survey embedded engineers expect about a 15% increase in the aggregate in the number of project starts from 2010 to 2011. Certainly good news for embedded solution providers – both software and hardware.

However, while aggregate survey statistics are metrics of importance to many in the community, segmentation of data creates an additional lens on the information from which to analyze and develop product and marketing strategies. The following data is based on VDC’s 2011 embedded engineer survey and included in our Track 2 Volume 1: Operating Systems report which segments respondent data by the use different types of operating systems in their development projects.  The good news for suppliers is that all communities expect the number of project starts to increase year-over-year, however, engineers working at companies using no formal operating systems in there development project cite a much smaller percentage of increase.

 
Embedded engineering organizations continue to place value on development projects that do not require a formal operating system primarily around the requirements and functionality of the device/system under development. However, to a lesser extent commercial licensing costs, retraining, and protection of investment in legacy code can also be considerations for continued use of no formal OS in their development projects. The demand for new functionality, connectivity, and other capabilities is creating greater sophistication of devices and systems being developed and to be developed in the future. As such VDC continues to observe a migration of development projects to the use of formal operating systems creating increased opportunity for embedded software suppliers to offer their solutions.

How does your development project stack up? Let us know through your feedback.

Our recently published report, Operating Systems, from Track 2 of VDC's 2011 Embedded Software Market Intelligence Service provides additional statistical insight and analysis around this and other trends affecting embedded system development.  Click here for additional information and access to a free executive brief highlighting other key findings from our research.

Evolution of Embedded Devices Driving Increasing Use of x86 Processors

Just about a year ago we posted a blog titled “Taking a Bite Out of Apple’s Playbook”.  This post included an exhibit on the use of ARM architecture in embedded development projects. We recently looked at other architectures including x86, PowerPC, and MIPS.  Here’s what the data shows for 2007 and 2010 for x86.

The use of x86 architectures continues to increase within embedded development projects, however, at a much slower pace than what was observed and reported with the use of ARM architecture.  VDC expects that a large part of the increase is attributable to the evolution of embedded devices where a wide-range of PC-like devices (industrial, retail automation, medical, etc.) are now being developed by OEMs. These device types might not be resource constrained nor have real-time requirements that would have typified many embedded devices in the past and driven OEMs to select a smaller footprint or more deterministic RTOS. Instead they incorporate embedded operating systems such as Windows Embedded Enterprise (OSs originally designed for PCs), Windows Embedded Standard, and others that require an x86 processor.

Going forward, it will be interesting to see the impact, if any, on the future use of x86 architecture in development projects as a result of Microsoft developing future iterations of its desktop OSs for ARM architectures.  Both companies have had a long-term business relationship prior to their July 2010 announcement with Microsoft’s Windows Embedded CE/Compact -based operating systems including Windows Mobile/Phone 7 supporting the ARM architecture in device designs. The bigger question is how OEMs will respond when Windows 8 and the resulting Embedded Enterprise/Standard versions become available with support for ARM?

Stay tuned for PowerPC and MIPS results in future blog posts.

Related Posts:

·         Taking a Bite Out of Apples Playbook

Commercial Android Market Expected to Grow more than 65% in 2011, Driven by Expansion into New Device Classes

 

But what is the commercial opportunity around Android?

Android has stormed to the forefront of the mobile OS landscape in the last year or so, rivaled in popularity and mindshare only by Apple’s iOS. According to Google, more than 100 million Android devices have been activated to date, at a rate of more than 400,000 activations daily as of last month. Considering all the excitement and momentum behind this platform, ISVs have been scrambling to grab a piece of the Android pie, which, in terms of commercial support and services, VDC expects to grow by more than 65% in 2011.

However, a key question remains – what exactly is the commercial opportunity around Android?

The appeal of Android is rooted in its highly integrated software stack, which includes audio, bluetooth, camera, GPS, graphical user interface, radio, WiFi, and other functionality. Android’s success in the mobile space – led by Google, AT&T, HTC, Motorola, Samsung, Verizon, and others – has inspired OEMs to evaluate the use of this platform in a variety of other types of devices, particularly those that place a premium on connectivity requirements, sophisticated user interaction, and application availability. However, Google has to this point remained primarily focused on smartphones and tablets, although the company did announce the Android Accessory Development Kit (ADK) and demonstrate the Android@Home framework for home automation at Google I/O earlier this month.

While Android’s integrated software stack is perhaps the platform’s most attractive attribute, the stack was designed primarily for mobile phones and the ARM architecture, which creates challenges for engineers attempting to build other types of Android-based devices. Given these challenges, VDC believes the key commercial opportunity around Android involves providing the tools and professional services that can enable engineers to optimize this platform for use on non-ARM architectures in a variety of vertical market applications.

Until Google shifts its primary focus for Android beyond smartphones and tablets, VDC expects that OEMs, ISVs, and the engineering community will be the principal drivers of the platform into new markets. This represents a tremendous opportunity for ISVs to leverage their domain expertise and capitalize on the extraordinary growth of Android to grow their own revenue streams and expand their customer bases.

Currently, the commercial market for Android related software solutions is still in its infancy. As such, the leading vendors and key strategies may undergo significant changes in the coming years, as new services, tools, and other innovations are brought to this market.

VDC investigates this trend among others in our recently published report, Android & Linux in the Embedded Systems Market, from our 2011 Embedded Software & Tools Market Intelligence Service. Please contact us for more information.

 

Related Posts:

How Many Operating Systems Does It Take for RIM to Sell a Smartphone?

We all know Android is Linux, but is it the New Linux?

Just Bing it Danno; Microsoft Still Searching for Ways to Regain Mobile Share

No, the OS Market hasn’t Frozen over, but, Yes, Those are all Penguins:

Commercial Mobile OS Suppliers Learning to Co-exist as OEMs Look to Increase Adoption of Open Source Platforms

 

Today’s mobile devices are more dependent on robust, complex operating systems capable of supporting a diverse ecosystem of new software applications. According to VDC’s recently published report on mobile operating systems, these  and other software  components  play a vital role for OEMs in the differentiation of their mobile devices, as advanced user interfaces, maximized use of hardware capabilities, and other unique user experiences are enabled by these software products.

 

However, operating system platforms maintained by industry consortia and through other open source projects are becoming increasingly popular in mobile devices, a trend which has impacted commercial suppliers in this market. While the commercial market is dominated by Microsoft, momentum behind consortia-based platforms has driven other commercial suppliers to broaden their product and services portfolio to offer additional support and services for open source platforms in addition to their proprietary offerings. Many of these new services are centered on Android, including Enea’s Android Competence Center, Mentor Graphics’ services and support for Android-based devices, MontaVista’s Rapid Deployment Program for Android, the Wind River Platform for Android, and others.

 

These product and service offerings are not new initiatives however.  Rather, they are the continuation and evolution of strategies employed by operating system vendors over the past decade. The unrelenting maturation and adoption of open source technologies such as Linux have placed constant pressures on traditional embedded operating system vendor business models and bottom lines.

 

However the bigger question today is - If few OS vendors could achieve profitability around Linux before Android, can any make money now when there is an even greater reliance on professional services?

 

VDC explores these and other critical issues within the market for mobile operating systems solutions in the recently released report, Mobile Operating Systems, Volume 3 from Track 1 of VDC’s 2010 Embedded Software and Tools Market Intelligence Service.

Complimentary Embedded Software and Tools Research Available

 

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Webcast June 16th: Embedded & Real-Time Operating System Market Update

The economy is recovering but that doesn’t mean that developers have stopped seeking out the most cost-effective, easy-to-use and complete solutions they can find.   Our recently published study on the embedded/ real-time operating systems market highlighted that with low cost/no cost availability, widespread developer resources and a maturing ecosystem of applications –  the use of Linux and other open source OS solutions in embedded systems is still on the rise.

As the use of Linux continues to intensify, so too does the use of the Android OS.  As device manufacturers look to take Android into new application classes beyond mobile, key players in the embedded/real-time operating system space are adapting in order to capitalize on the many associated service opportunities.

 The adoption of these OS platforms is just one of the drivers of market growth that we foresee.  We will talk about the other market trends, along with some other high-level findings from the report in our upcoming webcast June 16th. 

During this webcast, Steve Balacco, Director of the Embedded Software & Tools Practice, will present data from our 2010 study on embedded /real-time operating systems. Specifically, he will discuss:

• Consolidation in the embedded and real-time operating system market;
• Migration to commercial and open source operating systems;
• Multicore processors and embedded software considerations;
• Virtualization in embedded systems; and
• Embedded engineering trends.

Details & Registration

 

The iPad, the iPhone, & the iFans

Driving the evolution of the mobile and embedded software engineering landscape

 

What happened?

 

On January 27^th, Apple (NASDAQ: AAPL) finally announced its not-so-secret new e-reader/netbook/tablet mobile device.  With all speculation about its name, price, and features now at rest, more questions about the iPad’s potential impact on the mobile and embedded software landscape have begun to rise to the surface.

 

VDC’s View

 

There is no doubt that the iPod helped revolutionize the way people buy, store, and listen to music.  Nor could there be much contesting that the iPhone/iPod touch further catalyzed the transformation of the ways that people interact with multimedia.  But arguably the most transcending effect of Apple’s successful innovation/marketing has been on consumers’ expectations for sophisticated and intuitive user interfaces and for their devices to provide them with highly customizable user experience.

 

Beyond the effects on the music business alone, the iPhone has helped stimulate the rapid expansion of third-party application markets.  Although the ultimate appetite of consumers for yet another device is yet to be determined, the iPad already has what WinMo, Symbian, Android, Amazon, and HP (just to name a few) could only dream of – over 140,000 compatible applications and the iFans, a sea of devoted evangelists, fans, and developers.

 

If the iPad is a commercial success, we expect that the iFans’ expectations for top-tier functionality and ubiquitous, real-time content will drive a greater formalization of the third-party application engineering community – especially given the iPad’s form factor, which opens the door for new applications classes and higher app price points.  Moonlighters and cowboy coders will certainly continue to contribute to the breadth of content and applications accessible, but we expect more, large institutional engineering organizations and ISVs to fuel the next generation of sophisticated apps that will raise the bar once again for the consumer experience.

 

Enter the Embedded/Mobile OS Market Players

 

The evolution of third-party application markets along with the growing adoption of non-proprietary, open source, and consortia-based operating systems have continued to squeeze the traditional value proposition offered by traditional OS vendors attempting to compete in consumer-oriented verticals.  We have already seen a number of these OS vendors race to strengthen their professional service networks and quick-start integration capabilities. 

 

As more OEMs and ISVs attempt to tap into the mobile application market’s power to create new revenue opportunities and/or to strengthen/maintain their brands with the next generation of consumers, application OS vendors just might find their salvation through the functional expertise that once built up a billion dollar market for commercial mobile OSs.

 

Related Posts:

 

• Nexus One Google Another Battle in the Mobile OS Wars
• Welcome, Mentor Graphics. Seriously.
• UPDATE: Nokia to Acquire Symbian Ltd. – Can you hear me now?
• Head for High Ground: Market Pressures Squeezing Value up the Linux Software Stack
• Linux Adoption in the Embedded Market Presents Challenges to Commercial Suppliers

2010 Embedded Software & Tools Market Update & Outlook - Webcast Available

We want to thank everyone who attended our webcast, "Embedded Software and Tools Market Update & Outlook."  We hope you found the content both useful & interesting.  

In case you missed the live webcast, here is a link to its recording and slides.  Please note that registration is required to view the recording .

Please be sure contact us directly if we can help answer any questions you may have on the presentation or our thoughts on the 2010 embedded software and tools market in general.

The WINDs of Change Reveal Embedded Linux Constants

 

A recently published report by VDC Research indicates that Wind River Systems is now the leading commercial supplier of solutions for the embedded Linux market, ranked as a percentage of total market revenue.

After Wind River’s ascension to the top spot, we thought it would be fitting to take a look back at the competitive landscape when Wind first entered the market. Although the landscape has changed rather significantly over just a five year period, Wind River’s chief competitor within the space, MontaVista Software, has maintained a position of leadership within this dynamic market.

In fact – until this most recent report – MontaVista Software had resided atop the competitive landscape since VDC published its first Linux report covering the 2000 market, which is an especially significant achievement given the number and magnitude of other changes within this market.

“The embedded Linux ecosystem remains highly fragmented due to the large number of public and commercial distributions and tools available to embedded systems manufacturers, said Chris Rommel, Analyst with VDC’s Embedded Software and Tools Practice. “The commercial embedded Linux market, however, has remained a two horse race over the past few years and Wind River finally caught up. It will be interesting to see if it was just a short sprint or if they can hold their lead going forward.”

 

Will the Wind Shift Again?

While it appears as though Wind River has maintained their momentum and lead through the first half of 2009, this significant shift in the competitive landscape may only be temporary given Intel’s recent acquisition of Wind River Systems. Although Wind River’s products and services portfolio may strengthen Intel’s semiconductor value proposition, VDC estimates that Intel architecture designs currently represent less than 15% of Wind River’s overall revenue. As a result, a significant amount of Wind River’s market share will rest on Intel’s ability and willingness (not to mention that of their competitors) to maintain support for non Intel processing platforms.

This acquisition might just provide MontaVista the second wind it needs, enabling them to alter their go-to-market strategy and regain lost market share.

VDC explores these industry trends and other critical issues affecting this market in the recently released report, Linux in the Embedded Systems Market, Volume 2 from Track 1 of VDC’s 2009 Embedded Software Market Intelligence Service.

Down 2009 Expected to Lead to Growth in 2010 Embedded/Real-time Operating System Market

A recently published report by VDC Research indicates that embedded system manufacturers’ requirements and end-consumers’ expectations continue to drive substantial investment in embedded software and development tools.

The embedded and real-time operating system market, in particular, has faired better than many other sectors of the broader embedded market, with 2008 revenue demonstrating 9% growth over 2007. However, even this achievement is qualified with the expectation of the first industry contraction in 2009 since 2002.

“As a whole, the embedded operating system market has been greatly affected by the reduction in unit shipments over the past nine months due to the substantial percentage of market revenues typically derived from production licenses,” says Chris Rommel, Analyst with VDC’s Embedded Software and Tools Practice. “However, the magnitude of the recession’s impact has been tempered within the embedded and real-time segment due to the growing demands for software-driven functionality coupled with mounting device safety and security considerations and new device requirements.”

Although the recession has and is expected to continue to negatively impact the market for embedded and real-time operating systems in 2009, certain vertical markets have been less affected in the short term while others hold the potential to rebound significantly in 2010.

 

For example, innovation within the medical device industry will drive growth as cart-mounted devices consolidate sensing and computing components into smaller, mobile form factors and device software is placed under greater regulatory scrutiny. By contrast, the retail automation industry market is expected to demonstrate the largest percent decrease from 2008 to 2009 as retail stores combat falling revenues by limiting capital expenditures on new kiosks and POS equipment. However, VDC expects the retail segment to rebound significantly after showing modest growth in 2010 to grow in excess of 20% in 2011 as these companies begin to parlay increased cash flow into investments in enhancing efficiencies and consumer experiences.

VDC expects market participants who – in spite of the current economic climate – remain focused on targeted product development for and marketing to these and other key vertical markets will improve their ability to emerge from this downturn with greater revenue growth and market share.

VDC explores these industry trends and other critical issues affecting this market in the recently released report, Embedded/Real-time and Mobile Application Operating Systems, Volume 1 from Track 1 of VDC’s 2009 Embedded Software Market Intelligence Service.

To view a PDF of the press release, Click Here.

Yesterday, VDC published the 2009 Linux in Embedded Systems report in which a major change in the competitive landscape was announced.

Stay tuned for more highlights from that report.