Embedded Systems Bulletin – September 2009

Embedded Systems Conference (ESC) – Boston 2009

VDC attended the 2009 Embedded Systems Conference in Boston on September 22nd and 23rd and held face-to-face meetings at the conference with over 20 exhibitors.

Conference organizers reported that registration and attendance at the show are up year over year. The Boston conference has changed in so many ways over the last several years as some exhibitors have opted to invest in and attend the San Jose conference in lieu of Boston, in addition to focusing on industry specific events. This, in combination with the current economic climate, has resulted in shrinking floor space and scaling back of the size of exhibitor booths at the Boston conference.

While expectations of many of these exhibitors were mixed going into the show, many indicated that they were pleased with floor traffic and had generated a number of quality leads. And yes, most exhibitors we spoke with had some level of anxiety going into the show, however, most were pleased with the end result on show traffic and with the quality of leads.
Security, safety, reliability, multi-core, virtualization, and test engineering continue to be strong themes among the exhibitors.

THE “EMBEDDIES” GO TO:

Best of Show

VDC awarded our “Embeddie” best of show live on the conference floor to Enea for their OSE Multicore Edition announcement. The solution, available now, offers development organizations the simplicity of the Symmetrical Multiprocessing (SMP) model with the performance of Asymmetric Multiprocessing (AMP), scalability across cores, and a migration path for legacy applications. The company also announced a new focused strategy with two business units, Software and Consulting. The Software business unit, which includes Enea's global software business and related services, will focus on the company's position in the real-time operating system (RTOS) market. The Consulting business unit, which consists of the professional services business in Sweden, Romania and the United States, focus on local expertise combined with off-shoring services.

Honorable Mention

Microsoft released a series of announcements at the show around Windows 7 technologies and connectivity, including:

• Windows Embedded CE 6.0 R3, the next-generation platform of the componentized, real-time Windows Embedded CE operating system which includes the Silverlight for Windows Embedded user interface (UI) framework. This assists original equipment manufacturers (OEMs) in delivering devices with immersive user experiences, animated UIs and seamless connections to Windows 7-based PCs, servers and online services.
  
• Initial rollout of Windows 7 technologies for Windows Embedded Enterprise and Windows Embedded Server for specialized devices with connectivity to Windows-based PCs, servers and online services. These releases offer technology refresh and alignment with Windows 7 technologies to the embedded community in next-generation devices and to the established Windows ecosystem.”

Best Demos

ARM, together with NXP, announced and demonstrated mbed, an online platform for rapid prototyping microcontroller-based systems. The mbed platform is intended to enable the creation of low risk, proof-of-concept designs so that engineers can explore the functionality and potential cost saving opportunities presented through the use of an advanced microcontroller in the system. The first mbed microcontroller hardware package is based on a NXP Cortex-M3 processor-based MCU and includes C/C++ libraries to provide high-level interfaces to microcontroller peripherals

Cypress Semiconductor briefed and demonstrated their PSoC Creator Integrated Development Environment (IDE) for the new PSoC 3 and PSoC 5 programmable system-on-chip families. The unique new design software enables engineers to design the way they think, using schematic-based design capture along with certified, pre-packaged peripherals to keep system creation independent of the target PSoC device.

WALKING THE FLOOR

AdaCore, a leading supplier of Ada development tools and support services, announced the release of the GNAT Pro Ada development environment for the LynuxWorks LynxOS 5.0 operating system. This release allows GNAT Pro users to develop applications for both LynxOS 4.x and 5.0, and also provides a smooth migration path from older versions of the operating system to LynxOS 5.0. GNAT Pro for LynxOS 5.0 is available for both Linux and Windows host platforms, and for both PowerPC and x86 embedded targets.

Certicom briefed VDC on their new Asset Management System, a comprehensive infrastructure solution designed to help semiconductor companies manage, secure and control manufacturing processes in a global, outsourced manufacturing environment. Some of these processes include timely, secure and reliable capture and reporting of multi-point yield data, virtual SKUing, secure key injection and anti-counterfeit protection.

Real-time Operating System vendor ExpressLogic announced the integration of Real-Time Logic’s popular Barracuda Embedded Web Server with Express Logic’s ThreadX RTOS and NetX TCP/IP Stack. Optimized for the embedded market, the joint technologies form a small footprint solution ideal for the remote connected devices needed in medical, industrial, military and consumer applications.

Static analysis tool vendor GrammaTech announced that the next version of CodeSonar will support the secure coding rules developed by US-CERT. The coding standard provides secure coding rules and recommendations, which reduce insecure coding practices that can create vulnerabilities. CodeSonar's automated analysis will review code and quickly identify problematic sections of code that violate US-CERT secure coding guidelines. CodeSonar's automated enforcement will reduce the need for manual review, making it easier for organizations to adopt the coding standard.

Green Hills Software made several announcements at the conference including:

• A new Embedded Virtualization Business Unit, representing a significant investment and commitment to virtualization in the embedded and special-purpose computing market. The business unit’s INTEGRITY Secure Virtualization (ISV), supports hosting of Windows, Linux, VxWorks and other general purpose operating systems in secure virtual containers on ARM, Intel, Power and other processor architectures.
  
• Green Hills Probe support for Intel architecture to include the Intel Atom, Intel Core 2 Duo, and Intel Core i7.
  
• A new Networking Solutions Center based in Ann Arbor, Michigan. The Solutions Center is staffed by a team of engineering veterans dedicated to advancing network protocol technology, industry protocol collaboration, and network security.

IBM Rational was also in attendance, highlighting some of the advanced features in Rational Quality Manager and the Systems Engineering Toolkit from this year’s release of Rhapsody 7.5. In addition, IBM also highlighted at the show how developers can use Rational Rhapsody to help create applications for the Open Handset Alliance’s Android mobile platform.

Lantronix briefed VDC on their XPort and WiPort embedded networking servers. The implementation of Lantronix wired and wireless connectivity solutions eliminate design complexity by providing self-contained embedded networking systems.

LDRA announced a new security-critical development and certification solution to ensure that the LDRA tool suite can meet today’s growing demand for security-critical software. LDRA has extended its implementation of the CERT C secure coding standard to also meet Multiple Independent Levels of Security (MILS) and new Homeland Security criteria for security-critical software development. Recognizing that static analysis does not expose all software security vulnerabilities, LDRA has integrated this solution into its entire tool suite from analysis through test and requirements traceability.

LynuxWorks announced the release of LynxSecure 3.1, the newest version of its next generation separation kernel and embedded hypervisor. This update to LynxSecure takes advantage of new technologies, including guest operating support for the latest Microsoft Windows and the latest Intel Core2 Duo systems.

Programming Research (PRQA) announced the availability of a DO-178B Qualification Pack for QA·C++, its high fidelity language analysis tool. The QA·C++ Qualification Pack includes Tool Operational Requirements (TOR), Tool Qualification Data (TQD), and Tool Qualification Plan (TQP) documents, along with a user-activated Certification Report to provide users with automated project-based artifact documentation.

Real-Time Innovations (RTI) announced the release of RTI Routing Service, which dramatically eases the scaling and integration of real-time systems across Wide Area Networks (WANs) and Systems of Systems. RTI Routing Service enables seamless communication between applications deployed in different locations or even applications supporting different external interfaces—without any changes to existing software.

Other leading embedded systems vendors in attendance at ESC/Boston included AMD, aicas, Arium, Altera, Birdstep Technology, Black Duck Software, Bluespec, BSQUARE, Coverity, Datalight, eCosCentric, Electric Cloud, IAR Systems Software, Klocwork, Lauterbach, The MathWorks, McObject, Nokia, Perforce Software, RadiSys, Segger Microcontroller, Synopsys, Texas Instruments, Vast Systems, and many others.

VDC Embedded Linux Webinar

Linux in the Embedded Systems Market:
Project Requirements, Preferences, Trends & More


Although originally developed for general-purpose use on desktops and servers, the use of Linux within embedded devices continues to increase. The licensing cost advantages associated with Linux, the flexibility provided through access to source code, and general familiarity with its use provide a compelling value proposition to embedded system manufacturers.

VDC conducts an annual embedded engineering survey that covers embedded software, hardware, tools, and development practices. Focused on the embedded developer community, the survey offers insights into current development projects – requirements, preferences and trends.

Based on real data, this eg3.com Tech Choice Webinar explores:

• What are the factors for designing in Linux?


• What types of industries and applications is Linux targeted for?


• What’s the migration path in the use of Linux?


• Which Linux distributions are being used?

Register for this FREE webinar if:

• You or your company, or teams are using Linux or contemplating the use of Linux in an embedded development project or just curious about Linux.


• Your company is a software/hardware solution provider participating in the embedded market and interested in understanding how Linux is being used to engineer embedded devices/systems.

Click here to register for this ARCHIVED event hosted by eg3.com.

Tough Times, Tough Choices: Maximizing Device Software ROI with Open Source

On Wednesday August 26th, we will be participating in two live discussion panels that will explore how intelligent device manufacturers can leverage Linux and other Free and Open Source Software (FOSS) in the current challenging economic environment.

This live event will examine how building with and on open source technologies can impact product lifecyles, from prototyping through development and deployment in terms of capital expenditure (CapEx) and operational expenses (OpEx). In particular, the on-line roundtable will consider CapEx-OpEx trade-offs in platform acquisition, development tools, testing and bill of materials for FOSS-based devices, and how to maximize return from increasingly limited resources and budgets.

Please join moderator Bill Weinberg from LinuxPundit.com and panelists Michael O'Donnell of Freescale, Wind River's Sven Dummer and Alex deVries, and VDC's own Steve Balacco for a lively on-line discussion - and don't hesitate to share your own recession challenges and questions with the webinar team, live, on August 26th.

Wednesday, August 26th
06:00 AM PDT / 09:00 EDT / 15:00 CET or
4:00 PM PDT/ 7:00 PM EDT / 8:00 AM Tokyo UTC- (Thursday)

Click here to register for this ARCHIVED event hosted by Open Systems Media.

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.

Welcome, Mentor Graphics. Seriously.

What Happened?

Mentor Graphics announced at the Design Automation Conference a new strategy to target the next generation of mobile and non-mobile Linux devices. This expansion into the embedded Linux market will be supported by their acquisition of Embedded Alley, an embedded Linux product and services firm headquartered in San Jose with development offices in Russia. Oddly enough, no terms of the acquisition were disclosed as part of the announcement.

Similarly to IBM’s entrance into the PC market over twenty-five years ago, the magnitude of recent commitments to mobile Linux by tech industry stalwarts Google, Intel, and now Mentor Graphics help to validate Linux as a consumer-facing embedded operating system.

VDC’s View

Mentor’s market share in the embedded and real-time operating systems market has eroded over recent years, particularly with respect to its business in the mobile phone market and their inability to scale revenue from the no royalty-based Nucleus operating system in hundreds of millions of cell phones.

At the same time, advances in semiconductor technologies and the continued reductions in the cost of memory have allowed many device classes to deploy larger footprint embedded operating systems, such as Linux, than previously possible. Moreover, the Open Handset Alliance and the LiMo Foundation have generated a substantial amount of interest in and momentum for Linux as a mobile phone OS.

This acquisition signifies a renewed focus on the embedded software market as Mentor’s core EDA market stagnates. Much of the upside for Mentor, however, resides beyond mobile in the other application classes, such as telecom/datacom and military/aerospace, where their Nucleus RTOS is also widely deployed. Mentor can now offer their current and potential clients a choice or combination of operating systems to meet their varying project requirements.

Conversely, while a Linux offering will certainly aid Mentor’s embedded software value proposition, they acquired a company focused on professional services. As such, much of the acquisition’s value rests on the talent and retention of Embedded Alley’s team.

Although professional service capabilities continue to gain importance in the commercial embedded Linux market, Mentor has never had much services revenue around its traditional product offerings. As a result, we expect that Mentor’s ability to support and expand their professional services will ultimately dictate the success of entrance into the embedded Linux market.

The timing of this announcement is also rather fortuitous for Mentor given Intel’s recent acquisition of Wind River Systems. Wind River’s acquisition not only validates the growing importance of Linux in embedded systems, but it also presents other market participants with an opportunity to capitalize on any of the ensuing uncertainty or reevaluation in the market around Intel/Wind River’s support for non-Intel architectures..

This announcement is, in fact, just the latest action in a string of moves by other operating system vendors over recent years to offer Linux in addition to a proprietary real-time OS solution (i.e. Enea, LynuxWorks, SYSGO AG, and Wind River Systems, etc.).

In similar fashion to Wind River’s recent gains in the embedded Linux market, Mentor’s new offerings may allow it to recapture lost customers who had previously migrated from Nucleus to Linux as well as attract new device designs where Linux is a requirement. As a result, we expect that the collective smiles at MontaVista Software that appeared after Intel’s announced acquisition of WRS may be more tempered as they come to terms with the entrance of another deep-pocketed competitor offering Linux support.

Although Mentor was late to the party, it may turn out that they were just in time. In either case, welcome, Mentor Graphics. Seriously.

Intel to Acquire Wind River Systems ~ Update 2

VDC’s Continuing Analysis

As we said last week, “one could well imagine the discussions that are going on both sides of the embedded market”. Most likely this included many, many calls from both Intel and Wind River with their various strategic partners. Some partners may be satisfied, at least in the near term, and others more skeptical on Wind River’s position to continue to enable multiple hardware architectures and the ways in which they plan to securely partition sensitive, confidential company information between the subsidiary and mother Intel going forward.

Business as usual?

We suspect that software partners are less skeptical in the near term over the agreement and in some cases delighted to hear the news. Why? Because it creates an opening that many hope to explore and take advantage of to increase market share. These opportunities scale both VxWorks and Linux development on non-Intel architectures.

Never mind discussions on just both sides of the hardware/software market – embedded manufacturers are also a major part of the conversation. Consider the fact that automotive, military, aerospace, telecom and other type of development projects can take years of development and life-cycle support. In the case of military and aerospace, you can be talking about decades of support.

Can Intel/Wind or WinDtel convince these types of embedded manufacturers that they will continue to support, optimize, and invest in multiple architectures over their product development life? What can these manufacturers expect from their silicon suppliers? Will these silicon suppliers continue to be engaged in the short- and long-term with Wind River? VDC expects that none of these questions have been answered at this time but we also expect that embedded manufacturers are already conducting their due diligence and asking a lot of questions as part of looking at contingency plans for existing and new project designs on the drawing board that design in non-Intel silicon.

From an engineering perspective, it is difficult to design out any one component of a platform -hardware, operating system, development tools, etc. - within existing projects. There’s any number of technical challenges, a comfort factor, in many cases years of experience, and a trusted supplier relationship that need to be weighed as part of any decision to transition. Hard decisions for sure, which could be necessary and costly for embedded manufacturers.

Could history be an indicator of what to expect?

Two examples come to mind. The first is from the 2000/2001 timeframe when Wind River System acquired ISI and questions abounded about support for pSOS and pRISM (development tool environment). For embedded manufacturers faced with the reality of having to move to the VxWorks platform (at some time), the competition seized on the opportunity and looked to take advantage of the situation by offering various migration and evacuation kits from pSOS to other platforms. Could we see similar moves like this from the marketplace in the near term?

The second was reminded to VDC as part of a discussion last week with a hardware market supplier - the acquisition of Metrowerks by Motorola. Metrowerks at the time was a leading supplier of software development tools with their CodeWarrior tool chain which supported multiple non-Moto architectures such as MIPS, Hitachi, etc. The acquisition resulted in Metrowerks becoming a subsidiary of Motorola with a corporate commitment to continue to invest in, support, and enable multiple hardware architectures via the CodeWarrior tool chain.

This acquisition in particular has an eerily similar ring to the Intel/Wind acquisition – subsidiaries, continuing to support multiple hardware architectures, looking for other opportunities to do business with embedded manufacturers. This may have worked in the short term for Motorola but over time the decision was made to pull support of non-Moto architectures and focus on offering a tool chain solely optimized for Motorola/Freescale silicon.

For sure, Intel is serious about the embedded market with a goal to increase sales of embedded processors. Questions will continue and parties will look to posture themselves in ways that protect and/or seize on the opportunity to expand market share.

It may be business as usual in the short-term, but we expect to see some signals coming from the market as to which direction this acquisition will take.

Maybe some signs from silicon and software suppliers with new announcements of expanding strategic partnerships and/or support for new software platforms?

Or perhaps mid- to longer-term with software supplier announcements on new design wins in the key markets on which Wind River Systems has traditionally focused?

Only time will tell.

VDC will continue to follow this announcement and look to comment further so check back to the Blog or register via RSS or email to be notified when Blog updates are posted.

Intel to Acquire Wind River Systems ~ Update 1

VDC’s Analysis

VDC's investigation and analysis of Intel's planned acquisition of Wind River Systems is on going, but the following represents some of our initial thoughts and questions after considering today's news:

One could well imagine the discussions that are going on both sides of the embedded market. On one side, you have ARM, Freescale, MIPS and a host of other silicon partners. On the other side, you have software and tools suppliers such as Microsoft, Green Hills Software, LynuxWorks, QNX Software Systems, MontaVista Software, and a host of other software suppliers.

Today’s announcement indicates that “As an Intel subsidiary, Wind River will continue to develop innovative, commercial grade software platforms that support multiple hardware architectures …” Considering this statement, it’s somewhat easy to understand that questions are being raised and the implications being examined from both sides.

How might this acquisition limit the timely access to technology roadmaps and support for current relationships within the supply-side of the embedded software market? Could suppliers find themselves at a disadvantage somewhere down the road?

Wind River Systems supports a host of silicon architectures from multiple suppliers. It is critical for both the hardware and software segments to align silicon and software well in advance of availability. This requires strategic relationships in which technology roadmaps and engineering support is leveraged by both parties. Is it reasonable to expect that ARM or Freescale or MIPS amongst others would share their technology roadmaps with an Intel subsidiary so that their architectures could be enabled through Wind River’s software solutions?

There are certainly more questions than answers at this time and discussions on both sides of the embedded market will continue as they sort out the ramifications of such an acquisition.

Wind River is hosting their Q1 FY2010 earnings call this afternoon (June 4) at 5 p.m. EDT. This is certain to be topic discussed and questioned further during the course of the call. Details on the call can be found at" http://ir.windriver.com/phoenix.zhtml?c=91814&p=irol-newsArticle&ID=1291330&highlight

Stay tuned as VDC looks to comment further.

Intel to Acquire Wind River Systems

What Happened?

In a mammoth, $884 million deal, Intel (NASDAQ: INTC) announced its intent to acquire Wind River Systems (NASDAQ: WIND). The aggregate price tag puts approximately a 44% premium over the June 3rd closing price of $8.00 per share for WRS common stock.

After this acquisition, which is expected to close this summer, Wind River would operate as a wholly owned subsidiary of Intel and report into its Software and Services Group.

VDC’s View

This acquisition signifies a strategic extension of the partnership that Intel has been strengthening with WRS over recent years, as Intel has been attempting to extend its reach into more resource constrained, deeply embedded devices and as WRS has been positioning itself as a leading provider of software solutions for multi-core architectures.

Beyond the promise of offering enhanced system integration and faster time-to-market to their customers, VDC expects that this acquisition offers Intel the critical core competencies to expand its business within the mobile device segment. The maturation of Wind River's product and service offerings targeted at this device class - especially with respect to Linux - should help Intel better serve a mobile industry that has long been dominated by ARM IP-based silicon.

Stay tuned as VDC looks to comment further on any additional news.

UPDATE: Nokia to Acquire Symbian Ltd. – Can you hear me now?

What Happened?

On June 24th, Nokia Corporation (NYSE: NOK) announced its intent to acquire the remaining shares of Symbian Limited, a company of which they currently own a 47.9% stake, for an estimated $410 million. In conjunction with the planned acquisition, Nokia, Sony Ericsson, Motorola, and NTT DOCOMO, among others, will be launching the Symbian Foundation, an open and non-profit organization that will develop a royalty-free, Open Source Symbian OS-based software platform. The acquisition is expected to close pending regulatory approval in the 4th Quarter 2008. The Symbian Foundation’s launch is expected in the first half of 2009 with a complete integrated open source mobile software platform anticipated to be available in the first half of 2010.

VDC’s View

VDC wondered throughout yesterday just what was going on in Redmond. The stakes have certainly been raised in the mobile operating system market based on Nokia’s announcement to acquire and then create an open source Symbian Foundation entity.

The open source threat from the LiMO Foundation, the Open Handset Alliance (OHA), and their business models has been dangling over the heads of commercial suppliers of mobile software platforms like Symbian and Microsoft. Real success has not been measured by any volume of phone shipments to date - but they’re coming.

Membership in these foundations (including the expected Symbian Foundation) and alliances have significant overlap as software suppliers, handset manufacturers, carriers, and others hedge their bets against who will become the dominant environment, if there ever becomes one. Now comes Nokia’s - not a member of either LiMO or OHA – announcement of open source, community collaboration, innovation, the creation of an ecosystem of strategic partners, and the call to developers worldwide to come onboard.

The timing is right for Nokia’s move before LiMO and the OHA make an impact and gain momentum in the market. Nokia’s return on investment of some $400 million can quickly be justified in most likely less than two years by not having to pay royalties per unit shipped to Symbian Ltd. The business model for the Symbian Foundation is reflective of LiMO and OHA – royalty free! According to Nokia, Symbian employees will become Nokia employees – but some 1,600 employees?

Nokia’s planned acquisition of Symbian stands to further amplify the pressure on commercial mobile software vendors to compete on price and provide an ecosystem of value-added technology above and beyond mobile operating systems and tools.

How will Microsoft respond? This is not clear, but they most likely have strategies in place to deal with LiMO and the OHA. And now comes the soon expected Symbian Foundation. Microsoft has a number of options – none from VDC’s perspective, which would collectively be called open source, including:

• Releasing the source code for the Windows Mobile kernel (similar to Windows CE) for OEMs and developers to inspect, create derivative works should they choose, and feed back changes, improvements, and innovation to Microsoft for inclusion in future releases.
• Continue to enlist the mind share from strategic partnerships and alliances throughout the ecosystem of mobile players and developers.
• Rather than simply respond by reducing royalty costs – which may ultimately be an option for Microsoft – look to:

• Create a value proposition to carriers around the use of Windows Mobile that data services can drive the ARPU to where the $10 to $14 royalty fee for a Windows Mobile device becomes minimized.
• Continue to emphasize with handset manufacturers the value proposition around reducing development costs and time-to-market through the use of the Windows Mobile platform.

Nokia to Acquire Symbian Ltd.

What Happened?

On June 24th, Nokia Corporation (NYSE: NOK) announced its intent to acquire the remaining shares of Symbian Limited, a company of which they currently own a 47.9% stake, for an estimated $410 million.

In conjunction with the planned acquisition, Nokia, Sony Ericsson, Motorola, and NTT DOCOMO, among others, will be launching the Symbian Foundation, an open and non-profit organization that will develop a royalty-free, Symbian OS-based software development platform. Pending the acquisition’s regulatory approval, the Symbian Foundation’s launch is expected in the first half of 2009 with a complete, integrated open source platform anticipated to be available in the first half of 2010.

VDC’s View

Nokia’s planned acquisition of Symbian stands to further amplify the pressure on commercial mobile software vendors to compete on price and provide an ecosystem of value-added technology above and beyond the traditional domains of mobile operating systems and tools.

Stay tuned as VDC looks to comment further on this news.

Head for High Ground: Market Pressures Squeezing Value Up the Linux Software Stack

A number of market forces are limiting the ability of Linux software suppliers to extract revenue growth from the freely available open source software markets.

Recently published research by Venture Development Corporation (VDC) indicates that embedded systems manufacturers and their suppliers are driving the development of open source and industry-specific standards around Linux as a means to increase availability of more robust underlying solution platforms and development environments. These new standards hold the opportunity for OEMs to reduce their development costs and time-to-market while at the same time keeping pace with the advancing and unique requirements of their customers in their core markets.

These industry- and market-specific initiatives have served to create more robust open source platforms that are cannibalizing some of the differentiation found in commercial releases. Now those companies, as well as virtually all others, must find new means of adding value, differentiating and driving revenue.

“The recent efforts to standardize around more robust, market-specific, feature-rich Linux platforms have the potential to accelerate adoption of Linux for a wide range of applications within the markets where these efforts are underway. Success in those markets has the potential to accelerate Linux adoption across the broader embedded device market,” says Chris Rommel, Research Associate with VDC’s Embedded Software Practice. “However, market pressures are coming from a number of directions that will require commercial suppliers of Linux solutions to manage an increasingly complex set of peers, partners and competitors. Suppliers of commercial Linux solutions will need to focus higher up the software stack in providing an ecosystem of value-added technology, and in so doing, as their OEM customers encroach on their traditional domain, commercial Linux suppliers must be wary of competing with some in the higher level domains.”

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