Information about http://www.mvista.co.kr/downloads/wp_embedded_rev.pdf
W H I T E P A P E R…
Tags: core competence, cost of ownership, d morgan, disruptive technology, innovator, introduction 3, linux, linux revolution, market 3, montavista software, software crisis, software inc, software market, software solutions, system software, systems software, table of contents, vp engineering,Pages: 9
Language: english
Created: Tue Nov 23 14:27:12 2004
Display cached document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
W H I T E P A P E R
The Embedded Linux Revolution
and The Innovator's Advantage
Prepared by
Kevin D. Morgan, VP Engineering, MontaVista Software, Inc.
1
Title of White Paper
Copyright © 2001 MontaVista Software, Inc. All rights reserved. DATE
The Embedded Linux Revolution and The Innovator's Advantage
Table of Contents
Introduction ............................................................................................... 3
The Embedded Market and the Embedded System Software Crisis ....... 3
The Unique Values of Linux for the Embedded Market............................ 3
Embedded Linux as the Strategic Choice................................................. 5
Embedded Linux as Disruptive Technology ............................................. 6
Summary: The Innovator's Advantage ..................................................... 7
Your Core Competence and MontaVista Software's Value-Add .............. 7
Copyright © 2002 MontaVista Software, Inc. All rights reserved 2
The Embedded Linux Revolution and The Innovator's Advantage
Introduction
Embedded Linux is revolutionizing the embedded systems software market. The advantages
Linux offers relative to traditional proprietary embedded software solutions are tremendous.
These advantages translate to significant savings in total cost of ownership and time to market for
embedded developers and OEMs, and increased ability to highly differentiate products. The
result is a dramatic shift to Linux as the strategic embedded operating system platform of choice
in industries of all types. This shift is occurring today and is accelerating as the technology sector
initiates a new business growth cycle. The competitive advantages of embedded Linux are so
significant that even companies satisfied with their proprietary solutions will be required to make
this shift to remain competitive. The result will be the end of the traditional fragmentation of the
embedded operating system (OS) industry. Embedded Linux will grow to be the dominant
embedded OS solution with a majority market share.
The Embedded Market and the Embedded System Software Crisis
The embedded systems market can be defined very broadly as "product teams executing a
development lifecycle, who must address integrated computer system hardware and software
requirements." Alternatively, the embedded systems market can be defined from a product
perspective as "products that internally incorporate computing technology, but which are not
marketed as traditional desktop or server computers." Such definitions include a plethora of
product types, including telecommunications servers, routers, process control systems, factory
automation equipment, military and aerospace systems, medical equipment, test and measure-
ment devices, in-car information and entertainment systems, set-top boxes and personal video
recorders, cameras, phones, and PDAs. This list is expanding to include non-traditional product
types, as computing intelligence and connectivity become pervasive, in home appliances,
wristwatches, vending machines, toys, etc. Even running shoes may soon be an embedded
system product category!
There are two dimensions of rapid expansion of the embedded system software market: the first
is the growth of product categories, and the second is the growth of requirements for the system
software in the embedded device itself. Suddenly, a toy manufacturer that previously dealt with
very limited micro-controllers and small amounts of firmware needs to embed a complete OS
environment with multi-programming, TCP/IP connectivity, and Bluetooth wireless I/O (as an
example). Similarly, a multi-national consumer electronics company suddenly finds its product
teams forced to make decisions about the purchase and adoption of millions of lines of OS
software into their product lines, as every product now requires multiprogramming and Internet
connectivity. With such an explosion in internal costs and in the complexity of product design and
development, there is the risk of a software crisis throughout technology product industries.
The Unique Values of Linux for the Embedded Market
Against this backdrop of powerful forces expanding demand in the embedded marketplace,
embedded Linux has arisen as a new and very different alternative. An embedded Linux solution
targeted toward product engineering teams has a number of unique values:
Copyright © 2002 MontaVista Software, Inc. All rights reserved 3
The Embedded Linux Revolution and The Innovator's Advantage
· Simplicity and convenience versus traditional embedded system software products. The
simplicity starts with "it's just a UNIX target," which leverages the UNIX development
skills that so many software engineers possess. Even more convenient, the universe of
software engineers is increasingly Linux-literate and is immediately comfortable with the
core development tools and the programming paradigm for Linux embedded system
software. Compared with the difficulty of learning, structuring and becoming productive in
a proprietary tools environment (a la "Tornado" from Wind River), embedded Linux is
vastly more simple, familiar and convenient.
· Open source derived values that are unique and impossible (by definition) to replicate
with proprietary or in-house embedded system software. These values include:
o Vendor independence. Multiple vendors offer embedded Linux product solutions with
support, training and professional service options, using a variety of business models
with a variety of methods of differentiation. Additionally, the fundamental source
technology is available, making self-development and self-support of a solution a vi-
able (albeit expensive) alternative. Traditional exclusive dependence on a single
vendor, and the risk contained therein (witness Wind River's absorption of pSOS and
Mentor Graphics' of VRTX and Nucleus), is eliminated.
o Availability of trained expertise. Linux-savvy engineers are available throughout the
world. Linux is the foundation for systems education in universities because of its
openness. Books on Linux usage, programming and internals number in the hun-
dreds.
o Ability to create optimal designs through internal customization. This tremendous
benefit enables types of product differentiation not available at reasonable cost with
proprietary products.
o Early availability of hardware support. Linux is by far the preferred bring-up and initial
support vehicle for hardware manufacturers. This hardware support starts at the mi-
croprocessor level, where Linux availability outstrips any other OS in the history of
computing, and continues to the I/O level and beyond. Additionally, the vendor inde-
pendence assures that if one Linux vendor is unable or unwilling to invest in the
needed hardware support, there are alternative solutions.
o Early availability of new technologies in general. Linux is also the preferred vehicle
for computing system hardware and software innovation. Cutting-edge technology
will almost always be available for Linux ahead of other system software platforms,
and certainly relative to proprietary system software.
o Lower cost. Linux starts by providing a low-cost deployment platform. Next, Linux
deployment reduces costs to hire and train engineers, enhances the ability to cus-
tomize, and offers a simpler and more convenient development environment. The
result is a vastly reduced total cost of ownership. The availability of commercial dis-
tributions that provide a complete starting point for embedded system development
only serves to further reduce costs relative to cobbling together and maintaining an
embedded Linux development effort in-house.
Copyright © 2002 MontaVista Software, Inc. All rights reserved 4
The Embedded Linux Revolution and The Innovator's Advantage
Embedded Linux as the Strategic Choice
It is insightful to consider these factors from the perspective of a CTO or VP of engineering of a
technology products company with growing embedded computer system requirements. Faced
with the need for dramatic expansion and/or upgrade of embedded system software within his or
her company, what is the likely thought process of such an executive?
· Our products have increasingly complex system software requirements, including Internet
connectivity, a need for the most competitive leading-edge microprocessor technology,
and a need to support rapidly evolving and extremely complex I/O technologies.
· Our needs for such system software cut across a large number of different product or-
ganizations and teams, and are moving into product categories that previously had no
computing content at all.
· My competitive situation doesn't tolerate a high cost structure for system software. Cur-
rent budget constraints will not support the in-house teams formerly maintained; engi-
neering resources must focus on our own value-added technology to remain competitive.
Also, the royalty component of our current off-the-shelf system software in our cost of
goods is large and impacts our margins.
· Selection of a common, strategic system software platform will help the company avoid
getting mired in a multiplicity of solutions, each with a high cost structure and no overall
leverage. We know from past experience that disparate platforms inflate costs and in-
crease product development cycles.
· Proprietary or open source? Proprietary will:
o Lock our company into one strategic vendor; if that vendor fails to serve us well, we
suffer a long-term competitive disadvantage, or must switch platforms again with a
loss in time to market and an incursion of accompanying costs.
o Limit our ability to adapt technology as needed to maximize competitive advantage.
o Limit and/or delay our options on hardware selection.
o Increase cost of goods through per-unit run-time royalties.
· Conversely, selecting an open source Linux platform will:
o Allow selection of a single, strategic vendor that can provide a ready-to-use devel-
opment solution with full support and training.
o Allow us to change suppliers over time at relatively low cost if a vendor's integrated
product or service lags behind the offerings from other vendors.
o Allow us to perform the necessary amount of system platform customization needed
to maximize our competitive differentiation.
o Enable us to choose the best available computing hardware, free of constraints im-
posed by our own system software platform.
Copyright © 2002 MontaVista Software, Inc. All rights reserved 5
The Embedded Linux Revolution and The Innovator's Advantage
o Allow us to utilize the most current and capable I/O in our products.
o Help us leverage the most current innovations in software technology in our products.
o Foster development of our own internal competence to enable us to build highly dif-
ferentiated product value.
o Permit us to take advantage of a worldwide supply of professional service expertise
focused on system software technology.
o Allow us to recruit from a global pool of engineers trained in the technology.
The conclusion that embedded Linux is the best strategic choice is inescapable. The unique
values of embedded Linux provide tremendous business value, everything from reduced costs,
and reduced time to market to increased competitiveness, for technology companies designing
and developing products with embedded computing technology. These benefits are driving a
massive shift in multiple industries to embedded Linux today.
Embedded Linux as Disruptive Technology
Linux as an embedded operating system solution for product development teams has all the
properties of a disruptive technology as defined by Christensen in his book, "The Innovator's
Dilemma." Disruptive technologies:
· Are simpler and more convenient to use than the current dominant technologies.
· Provide new and different value to particular market segments or product categories that
are not provided by the current dominant technologies. Frequently, such a market seg-
ment or category of product is non-existent prior to the emergence of the enabling disrup-
tive technology.
· Are typically lower in cost than existing dominant technologies.
· Frequently under-perform relative to traditional dimensions of performance or value that
have been the basis of competition for the current, dominant technologies.
Embedded Linux clearly demonstrates the first three properties above. With respect to under-
performance, embedded Linux has frequently been maligned by proprietary OS vendors as too
slow, too large, and lacking tools. These are the traditional dimensions of competitive differentia-
tion in the proprietary embedded OS market. Early adopters have found the unique values of
embedded Linux surmount these perceived shortcomings. Over time, investment by companies
like MontaVista Software in open source solutions to these traditional competitive needs has
brought Linux up to and over the minimal requirements of the mainstream market, and in some
cases to a strongly competitive position, in exactly the manner that Christensen outlines in his
theory of disruptive technology.
It is interesting to note that the values of Linux for embedded product design teams are not values
that apply to Linux for the desktop and general server markets. Linux for desktops and servers is
not simpler nor is it more convenient than the Microsoft product alternatives. The open source
derived values for engineering teams don't apply to the desktop and server users (who are not
development engineers). In Christensen's terms, Linux for desktops and servers is a sustaining
Copyright © 2002 MontaVista Software, Inc. All rights reserved 6
The Embedded Linux Revolution and The Innovator's Advantage
technology, competing almost exclusively on cost. In the server market, the cost benefit has
enabled Linux to penetrate very deeply in the market. However, it is only for the embedded
market (specifically for embedded system engineering teams) that Linux becomes a truly disrup-
tive technology with unique values that drive a revolutionary shift.
The values of embedded Linux are also completely independent of the system(s) of choice for the
desktop and server environment in a product engineering organization. An existing major
investment in a Sun Solaris or Microsoft Windows-based software engineering environment need
not be jettisoned in favor of desktop or server Linux to take advantage of the values of embedded
Linux. Complete embedded Linux cross development software from Solaris, Windows AND Linux
is available today from vendors like MontaVista.
Summary: The Innovator's Advantage
It is not yet visible to the media or even to some of MontaVista's competitors, but the Linux
embedded system software revolution is not a future event: it is underway and moving at full
steam. MontaVista is rapidly approaching 500 active customers for MontaVista Linux. Note that
MontaVista Linux is a professional software development solution package with professional
software pricing. Each MontaVista customer represents revenues of tens of thousands to
hundreds of thousands of dollars, with many companies making million-dollar commitments to
MontaVista Software. MontaVista customers come from every possible product segment, with
top, brand name Fortune 100 customers within each segment. Many of these customers are in
the process of adopting embedded Linux as their strategic embedded system software.
We are rapidly approaching the early majority phase of the development of this new market. The
resurgence of technology investment and spending in the coming months will drive embedded
Linux into an exponential growth phase. The traditional fragmentation of the embedded system
software industry will be replaced by an overwhelming dominance of embedded Linux, as half
and then more than three-quarters of new product development programs move to Linux by 2005.
The combination of a thoughtful analysis of the disruptive values of Linux for embedded product
developers, and observation of the breadth and depth of MontaVista Software business success
through an extremely difficult technology business cycle, can lead to no other conclusion.
Why are technology companies buying a professional embedded Linux product solution, rather
than putting together and maintaining one of their own? After all, "it's just open source," and
"Linux is free." The answer is simple they are choosing to buy, not build because purchasing a
professional embedded Linux product solution saves companies substantial time and money over
"do it yourself" options. The buy versus build decision becomes simple when the cost and
complexity facts are considered. MontaVista Linux 2.1 is composed of 29 million lines of source
code, drawn from 19 different unsynchronized and non-integrated code repositories, and it took
nine calendar months and approximately 17 engineer-years to construct, qualify and deliver.
MontaVista Linux 2.1 targets over 70 board computers, 24 microprocessor architectures, and 11
different host computing environments out of the box, and ships complete with ready-to-run
binaries, bundled unlimited technical support, and defect corrections and product update access.
Your Core Competence and MontaVista Software's Value-Add
Today, companies must focus on core competencies and core differentiated value. Replicating
this level of effort for a component technology would be a costly error. Only rarely will a company
need to innovate substantially within Linux system software, justifying financially a "build" ap-
Copyright © 2002 MontaVista Software, Inc. All rights reserved 7
The Embedded Linux Revolution and The Innovator's Advantage
proach to embedded Linux, just as few companies today can financially justify designing their
own processors or I/O components.
At MontaVista, we thoroughly and consciously align our business strategies and business model
around the revolutionary and disruptive nature of Linux for embedded system developers.
Christensen wrote his book and took his title from the perspective of traditional product compa-
nies struggling with innovative technology, under attack by innovators aggressively bringing
disruptive technologies to market. At MontaVista, we are the disruptors; we drive the ongoing
revolution in embedded system software. We fuel the fire of embedded Linux disruptive value,
and we are the company closing the performance gap between Linux and traditional proprietary
solutions. What is a dilemma for proprietary platform vendors is the The Innovator's Advantage
for MontaVista Software, a company solely focused on powering the ongoing embedded Linux
revolution.
Copyright © 2002 MontaVista Software, Inc. All rights reserved 8
The Embedded Linux Revolution and The Innovator's Advantage
Corporate Headquarters
United States
MontaVista Software, Inc.
1237 East Arques Ave.
Sunnyvale, CA 94085
Tel : (408) 328-9200
Fax : (408) 328-9204
email: sales@mvista.com
http://www.mvista.comT
European Headquarters Japan Headquarters
The Netherlands Japan
MontaVista Software BV Maarssen MontaVista Software Japan, Inc.
Tel: +31 (0) 346581090 Tel: +81-3-5469-8840
email: info-be@mvista.com email: info-jp@mvista.com
Belgium Asia Pacific Headquarters
MontaVista Software Hove
Tel: +32 (0)474 53 09 05
email: info-be@mvista.com Hong Kong
MontaVista Software, Inc.
Tel: +852 2506 6201
France
email: info-ap@mvista.com
MontaVista Software SAS
Tel: +33 (0)1 30 16 28 28
email: info-fr@mvista.com Singapore
MontaVista Software Singapore Pte. Ltd.
Tel: +65 8385442
Germany
email: info-ap@mvista.com
MontaVista Software GmbH
Tel: +89-893 375 90
email: info-de@mvista.com
Sweden
MontaVista Software AB
Tel: +46 8 527 570 00
email: info-se@mvista.com
UK
MontaVista Software Limited
Tel: 08709 010870
email: info-uk@mvista.com
Copyright © 2002 MontaVista Software, Inc. All rights reserved. MontaVista Linux is a trademark of MontaVista Software, Inc. Linux is a registered trademark of Linus
Torvalds. All other trademarks are the property of their respective owners.