Revenue confirmation for WIND's gorilla status will be essential. But I'm fairly confident, owing to their business plan (it seems like their royalties are "locked in" and grow with each individual device sold -- they keep on laying down monetary plateaus as their new floor, no?), their consolidation, and the exploding market they are in.
However, John Huber's gorilla analysis of 2/3/00 shows a proto-gorilla whose stand is already impressive, a company which stands at the precipice of becoming the MSFT of embedded operating systems.
With its acquisition of Integrated Systems, WIND has already grabbed more than 50% of the Commercial Off The Shelf market for Operating Systems. They bought out their number one competitor.
Their proprietary operating system already has 400 partners. They seem to be expanding and consolidating right now, with their takeover of Integrated and their takeover of Embedded Support Tools, which offers hard and software solutions to test, program, and debug embedded systems. EST's customers include Ciena, Motorola, and 3COM. Add this to WIND's own list including Intel and Cisco, and you have an impressive value chain developing.
With the confirmation of WIND as the leader of the COTS market with its takeover of their number one competitor, I can imagine that WIND would become the safe choice for companies deciding between buying a commercial Operating System and growing their own.
Very impressive business plan (license plus royalties, dominant share, VERY high switching costs, and a market that includes just about every device you can imagine -- digital cameras, printers, cable boxes, etc).
Why haven't we heard more about this one? With 40% revenue growth, they're not in the tornado yet, but the Wind is strong, no?
And what a market cap!! 2.4 billion dollars! Put a few 2.4s together and soon you're talking real money, :D
I like the looks of this one.
G |
