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Technology Stocks : Wind River going up, up, up!

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To: David R. Lehenky who wrote (958)4/23/1997 9:36:00 PM
From: David R. Lehenky   of 10309
 
Implications of the PLX I2O Product Announcements - Conclusions
---------------------------------------------------------------

I thought I'd add some opinion on the impact of the PLX products
on WIND's I2O revenue to round out my previous post.

I don't see the PLX 9080, etc. having anything but a positive affect
on WIND in terms of the original market for I2O - PC servers and
high-end desktops. IxWorks will now be able to run on the balance
of the i960 product line, thereby expanding IxWorks PC applications.
This should exceed any penetration of other I2O IOP competition for
simple economic reasons. Hardware peripheral manufacturers - those
building PCI I2O adapters - have no incensive to support their own
hardware device drivers on multiple IOP platforms. The whole idea
here is that you write one version of the device driver that adheres
to the I2O/IxWorks API and your done; your hardware adapter is now
available to any OS that supports the I2O OSM, and any hardware plat-
form that supports the PCI bus. To complicate life by porting this
generic device driver to multiple I2O IOP platforms would not make any
sense, and would definitly cost more.

The PLX products will be used primarily in embedded systems that want
to make use of the PCI bus and the I2O message protocol internally to
implement their particular I/O subsystems. Communication equipment
and office products would be canditates for this design approach. Yet
these are the very product groups that WIND has already penetrated.
If the product already uses VxWorks, this is a no-brainer. If it is
still based on a in-house roll-your-own OS, then who cares if they
go to VxWorks with PLX I2O Manager or IxWorks. It is also possible
that the product will continue to use its in-house OS, or adopt a
competing RTOS, but none of this is changed, one way or the other, by
the PLX product availability. If anything, these product designs will
have even more reason to select WIND, becuase of WIND's I2O/IxWorks
leadership. If you want I2O compatibility, WIND is top dog.

-Dave Lehenky
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