Friday, July 18, 2008

Microsoft’s Classic OSs a Major Driver of Revenue for Windows Embedded

Natick, Massachusetts – July 17, 2008 – Recently published research by Venture Development Corporation (VDC) indicates that embedded systems manufacturers and their suppliers are driving Windows Embedded revenue by incorporating Microsoft’s Classic OSs under embedded restricted licenses in device development.

While the scope of the research report covers Microsoft’s Embedded and Mobile segments, VDC estimates that greater than 40% of Windows Embedded revenue in 2007 was derived from Classic OS (Windows Embedded Enterprise) production licenses. The types of applications can range from retail automation, industrial automation, large complex medical devices, and others. VDC’s description of Microsoft’s Classic OSs includes full-up versions of Windows XP, Vista, 9x, DOS, and other operating systems under embedded restricted licenses.

Windows Embedded 2007 Platform Revenue Share
(Percent of Dollars)

“The main factors driving Microsoft’s success in this area is the development of PC-type devices that are not resource constrained, do not require any special hardware or software requirements and where third-party application software already exists” said Stephen Balacco, Director with VDC’s Embedded Software Practice. Real-time support if required can be achieved with real-time extensions from companies such as Ardence (RTX), TenAsys (INtime), and others. “In these cases, with low volume shipments a standard general purpose off-the-shelf operating system becomes an attractive fit both technically and financially for the embedded system manufacturer.”

VDC explores these and other critical issues within the market for Windows software solutions in the recently released report, Windows Embedded and Mobile Operating Systems, Volume 2 from Track 1 of VDC’s 2008 Embedded Software Market Intelligence Service.


Venture Development Corporation (VDC) is a technology market research and strategy consulting firm that advises clients in a number of industrial, embedded, component, retail automation, RFID, AIDC, datacom/telecom, and defense markets. Using rigorous primary research and analysis techniques, the firm helps its clients identify, plan for, and capitalize on current and emerging market opportunities. We strive to deliver exceptional value to our clients by leveraging the considerable technical, operational, educational and professional experience of our research and consulting staff. During our nearly four decades of ongoing operation, we have had the pleasure of serving most of the world’s leading technology companies, many high-profile start-ups, and numerous blue-chip early and later stage investors. Our products and services consist of research reports, annual research programs, and custom research and consulting services. Founded in 1971, the firm is located in the Boston area. Please visit our Web site at to learn more.

For further information about VDC’s Embedded Software Practice and the 2008 Embedded Software Market Intelligence Service, contact:

Stephen Balacco, Director, 508.653.9000 ext. 124,
Matt Volckmann, Senior Analyst/Program Manager, 508.653.9000 ext. 143,
Chris Rommel, Analyst, 508.653.9000 ext. 123,

For pricing/purchasing information, contact:

Cyril Bernard, Account Executive, 508.653.9000 ext. 142,

Join the VDC mailing list to receive future updates at:


Amman Badlani said...

Intel launched an informational microsite related to embedded technologies around mid-April of this year - I thought it would be useful to post this information for anyone interested in checking it out. There you can find information on Intel's embedded and communications platforms, technologies, virtual labs, webinars and products. You can also learn how these technologies can help with scalability, energy efficiency and performance solutions.