24 posts categorized "Market Size"


Agile2013: VDC Research is heading to Nashville - Music City!

The M2M Embedded Software team is excited to be heading to Nashville to attend Agile2013 (#agile2013). The growing adoption of Agile methodologies is one of the most important developments in the software lifecycle management solution market since VDC started covering it in 2000.

Agile2013 banner
Despite origins in the enterprise/IT software development world, iterative software development methods have also taken hold in the embedded market. In fact, nearly 50% of embedded engineers we surveyed in 2012 used Agile and Iterative methods.

As embedded systems continue to evolve, organizations still relying on traditional development methodologies are struggling to keep pace with their software content creation demands. Many of these OEMs are accustomed to the traditional, serial development workflows especially common within safety-critical application classes. However, updates to several software standards, such as DO-178C, have provided the embedded industry with better clarification and more guidelines around the new development techniques. As a result of these pressures and advances, we expect iterative development methodologies will continue to gain new adherents in the embedded market.


Hope to see you there

If you want to learn about the latest Agile approaches, methods, technologies, tools, leadership principles, management philosophies and processes, we hope you will attend Agile2013. Also, please check out some of our free research on Agile, DevOps, and software development tools.

Contact us ASAP to schedule a meeting

VDC will be attending the Agile2013 conference Monday, August 5th and Tuesday, August 6th.

Contact André Girard, Sr. Analyst, M2M Embedded Software & Tools at:

agirard@vdcresearch.com or 508.653.9000 x153.

We look forward to seeing you at the show!



VDC Research is the leading M2M market intelligence firm that provides engineering leaders and technology suppliers with research-driven insights to help guide their product development and technology strategies. For over two decades, VDC Research has been conducting research and analysis of the global M2M market. Born out of its embedded engineering research practice, VDC Research surveys and interacts with thousands of engineers from all vertical markets including industrial automation, retail, manufacturing and medical devices, to gain insight into their project requirements, solution selection criteria, preferences and trends. 

Based on a unique blend of quantitative and qualitative analysis that offer granularity and breadth of coverage, VDC is organized around four practice areas, each with its own focused area of coverage. Together, they enable a unique 360-degree perspective of the opportunities and challenges resulting from The Internet of Things and M2M.

For more information visit: www.vdcresearch.com


ALM Connect Executive Day and EclipseCon, March 2013


VDC was excited to attend the ALM Connect Executive Day, which was run in parallel to EclipseCon 2013 in Boston this week. The objective of the executive day, to provide a platform for software delivery executives to discuss modern ALM practices in the context of business problems, is tightly aligned to our Software & System Lifecycle Management Tools research.

The day brought together leaders from ALM suppliers, ISVs and consulting firms to discuss how ALM is evolving in response to the changing software delivery environment. The M2M Embedded Software team investigates many of the same questions ALM Connect aimed to answer such as:

  • How does ALM work in the world shifting from 'Systems of Record' to systems of engagement?
  • How does SaaS, Mobile and open source change ALM?
  • What does Agile mean to ALM?
  • What does complex sourcing do to ALM?

Among the ALM Connect Executive Day highlights:

 “What ALM knowledge you can expect from Computer Science Graduates” with Gary Pollice, Professor of Practice, WPI Computer Science Department. A great description about what you should look for in a recent computer science graduate and, more importantly, why.

“Managing Complex Supply Chains with ALM” with Mik Kersten, CEO, Tasktop. Mik demonstrated how Tasktop is helping large corporations work through the mess they’ve made of their development lifecycle through piecemeal tool adoption at team levels, corporate expansion, mergers and other realities of business as usual.

 “Scrum - Success Ends with Middle Management” with Ken Schwaber, the Co-creator of Scrum and CEO of Scrum.org. Ken stressed the importance of individuals and interactions over processes and tools as organizations look to create more agility. Also presented was the “Agility Index”, a means to track progress towards of process improvement goals.

“Future of ALM Panel” with Sam Guckenheimer, MS Visual Studio; Jeffery Hammond, Forrester Research; Raziel Tabib, HP; Mik Kersten, Tasktop; Mike O'Rourke, IBM Rational. The panel gave us a lively discussion on a number of topics including developer resistance to change, estimates on the enterprise ALM market size, and ongoing heterogeneity and integration challenges of ALM.

More information on ALM Connect Executive Day can be found here.



We also made time to visit some booths and sit in on a few presentations of EclipseCon.

The focus of the open source Eclipse community is software development tools as well as the intersection of tools, process, and new business models. As more and more organizations view their ability to manufacture software as a competitive advantage, ALM is becoming a vital business process.

Among the EclipseCon highlights:

CollabNet’s Laszlo Szalvay presentation, "Making Agile ALM Work in Regulated Industries”:  The discussion focused on some of the uncertainty towards Agile that remains in highly regulated industries such as Finance, Telecommunications, Pharmaceuticals and Government. VDC sees the same concerns about control and increased developer autonomy in the embedded industry. Likewise, we share the opinion that Agile can succeed in these industries with the use of the right processes and tools.

The session entitled, “High Quality Agile - Incorporating Quality into Your Agile Process and Organization Means Working Faster and Smarter,” by Lorinda Brandon of SmartBear Software. Lorinda outlined some best practices for maintaining high quality as an organization moves towards a continuous software delivery business model.

More information on EclipseCon 2013 Boston can be found here.


About VDC Research Group                                       

VDC Research Group (VDC) provides market research and advisory services to the world's top technology executives. Our clients rely on us to provide actionable insights to support their most important strategic decisions. The firm is organized around four practices, each with its own focused area of coverage including: automatic identification and data collection, embedded hardware, embedded software and enterprise mobility.

Our market research is the basis for the many ways that VDC can help our clients to grow their business. We offer a range of services designed to meet their specific corporate development, opportunity assessment and lead generation needs. Founded in 1971, the firm is located in the Boston area. Please visit our Web site at www.vdcresearch.com to learn more.

VDC has been providing embedded systems market intelligence for over 20 years.


Host Development Platforms Used by Embedded Engineers

One of the areas of interest to suppliers of embedded software development tools is to make sure that they target their investments to the type of platforms engineers prefer to use for their software development. Based on VDC’s 2012 survey, a majority of embedded engineers cite the use of Windows-based systems as their preferred development environment.

The use of Windows 7 as a host development platform has increased year-over-year and according to survey respondents could reach almost 50% within the next two years as engineering organizations migrate from Windows XP.  Windows 8 as a selection, while not included in this year’s survey, will be in our 2013 survey. It will be interesting to receive engineers feedback on the use of Windows 8 in 2013 and what the expected use of Windows 8 as a host development platform could be going forward.

Host paint

How does your development project stack up?  Will your engineering organization look to migrate to Windows 8 in 2013? Let us know through your feedback.


Embedded/Real-time Operating System Market - Uneven Growth in 2011 – Slower Growth Expected Over the Forecast Period

In 2011, growth in the market was uneven and the rate of growth below what VDC had forecasted from last year. Suppliers in the market expressed mixed views on the state of the market in 2011 and the challenges they faced during the course of the year.

VDC estimates that the market for embedded/real-time operating systems was greater than $1 billion in 2011, an increase of slightly more that 5% from a revised 2010 estimate. Over the forecast period we expect this market segment to grow at a combined annual rate of less than 6% per year through 2014.

Rtos blog exhibit

OEMs have been affected by the global economy where companies have reduced staff, yet productivity expectations are increasing – doing more with less. The economic uncertainty tends to drive lower project costs (hardware consolidation, hardware platform choices, free tools and software, etc.) and cause project delays or cancellations.

VDC expects that the fast changing pace of technology and new functionality demands will continue to affect OEM decisions in a move to commercially available software platforms creating growth opportunities.

Our recently published report, Volume 1: Embedded/Real-time Operating Systems, from Track 2 of VDC's Strategic Insights 2012: Embedded Software Market and Tools Market provide additional insight and trends affecting the Embedded/Real-time Operating System market. Please contact us for more information.



Don’t Rely Solely on Mil/Aero, the Largest Software & Systems Modeling Tools Segment

As code bases grow in complexity and organizations commit more of their time and resources to software development, embedded engineers and enterprise developers are increasingly turning to software modeling tools to help manage this complexity while still meeting ever greater time-to-market pressures. The considerable market opportunities for modeling tools as one of the methods depended upon to clarify requirements, understand behavior, and design the functionality are highlighted in VDC’s recently published Software & System Modeling Tools report.

VDC estimates the market for embedded software and system modeling tools and related services will expand at a Compound Annual Growth Rate (CAGR) greater than 10% through 2014. A growing requirement for interconnectivity between devices and their support systems is forcing engineers and developers to take other systems’ requirements and resources into consideration, contributing to a strong use case for modeling tools.

An increased focus on interconnectivity and intelligent systems in both the defense and avionics segments, as well as the expanding adoption of industry standards such as DO-178C, which emphasize traceability, reuse, and modeling, will spur growth in product sales in the industry going forward. VDC estimates show the military / aerospace industry is the largest vertical market for embedded SSMT in 2011.

We believe however, that government defense budget reductions and shifting military plans in Europe and the US may disrupt or cancel several planned projects. Therefore growth opportunities going forward will be dependent upon increased demand for automation in multiple industries and continued implementation of certification requirements in industries less penetrated by modeling tools such as medical, industrial automation and energy/power.


VDC investigated these market dynamics among others in this evolving segment in our recently published report, Software & System Modeling Tools, volume 1 of our 2012 Software & System Lifecycle Management Tools Market Intelligence Service. Please contact us for more information.



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.


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