Embedded Linux Grows, But Not as Fast

8/21/2003 - While the commercial use of Linux in the embedded market continues to grow, VDC has reduced its forecast through 2007. Included among the key factors impacting the forecast are:

Changing competitive landscape and strategic direction of commercial embedded Linux software solution providers A number of companies have either failed, exited, or de-emphasized their embedded strategy over the last two years (i.e., BluePoint, Coventive, Neoware, Coollogic, Empower Technology, RidgeRun, Red Hat, etc.).

An increasing number of hardware and platform solution providers offering a non-commercial open-source Linux distribution with drivers for their hardware (i.e., EMJ Embedded Systems, Octagon Systems, Micro/sys, Arcom, Accelent Systems, etc.) In an effort to further reduce costs, developers could opt to use these solutions for their production shipments along with support from the open source community, forgoing the need to acquire and pay for a commercial solution.

Traditional embedded OS solution providers adapting to the perceived benefits of open-source by increasingly making source code available, simplifying their pricing and engagement models, and developing a sense of community through start-up programs, developer conferences, on-line chats with product developers, and free downloadable software for evaluation.

"In the fragmented embedded market, Linux continues to gain momentum and serious consideration from embedded developers as an embedded operating system for development projects," said Stephen Balacco, Embedded Software Analyst at VDC. "However, as traditional embedded software suppliers adapt and minimize the underlying key benefits of the open-source model, embedded Linux solution providers must be prepared to move the discussion beyond the boundaries of the operating system and focus on providing integrated platform solutions that empowers the developer to accelerate product development, manage development costs, and minimize risk."

About VDC
Founded in 1971, VDC is a technology market research and consulting firm that specializes in industrial and commercial electronics, computing, and communications, software and power systems markets.

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