Re: Competition of Wind River and Radisys
In fact, from a technical viewpoint, if I had the need to use an Intel 32bit processor in a design, there are quite a few other companies, incl WIND, that I can use (INTS, MENT).
It sounds like you've never used an x86 processor and you'd consider it an unpleasant experience. You're not the only Wind River programmer who has never used the x86 family and the company gets only a fraction of revenues from x86 designs. Clearly, you get superior price/performance and consume less power in a non-x86 design. However, other important factors need to be taken into consideration.
Many companies can't afford a full-time dedicated in-house programmer like you to implement a design and an x86 design can be brought to market very quickly. In addition, they can find x86 application programmers much more easily.
The 3 companies you mentioned may have x86 offerings, but it represents a fraction of their revenues. They all originally developed their products for non-x86 processors and ported them many years later as an afterthought when it became clear that the x86 is taking over the market. Only MSFT and QNX developed and tuned their products specifically for the x86. You can buy an x86 processor from IDT, Cyrix, or AMD, but the fact remains that Intel has a monopoly in the market even though other acceptable offerings are available. Radisys is a pure play on the x86 architecture that's taking over the embedded systems market.
If you compare the profiles of WIND and RSYS on SI, you'll notice that WIND names 4 significant competitors, but RSYS cannot name even a single one! Not even Standard Oil in their prime controlled 100% of the market, but they still had an unfair advantage like Radisys. I will not invest in a company unless they have an unfair advantage that enables them to reap windfall profits.
From techstocks.com
Competition - From 10-K (April 1997)
The Company believes that its principal competition comes from companies that develop real-time embedded software development systems in-house rather than purchasing such systems from independent software vendors such as the Company. Many of these organizations have substantial internal programming resources with the capability to develop specific products for their needs. The Company also competes with other independent software vendors, including Integrated Systems, Inc., Mentor Graphics, Inc. (through acquisition of Microtec/Ready Systems), Microware Systems Corporation, and Microsoft Corporation. In addition, hardware or other software vendors could seek to expand their product offerings by designing and selling products that directly compete with or adversely affect sales of the Company's products.
From techstocks.com
Competition - From 10-K (February 1997)
Because many OEM customers view their embedded computer requirements from a make versus buy perspective, the Company often competes against its OEM customers' ability to design and manufacture satisfactory embedded computer products in-house. A customer may be capable of manufacturing an embedded computer product at lower cost and with better quality control than the Company can, and may wish to use underutilized internal design and manufacturing resources. On the other hand, if the OEM customer wishes to rely on outside expertise, desires quicker time-to-market, is lacking internal design and/or manufacturing resources, and wishes to avoid certain issues of product stability, new technologies, and redesign due to end-of-life components, the customer may opt to purchase the Company's embedded computer solution.
Off-the-shelf product manufacturers comprise a second set of competitors, although this product segment is highly fragmented by physical and electrical form factor. Electronics contract manufacturers form a third set of potential competitors, although most have no specific product or application design expertise and simply manufacture to a third party's design.
Finally, the Company competes against embedded computer systems that rely on non-Intel-based architectures, including the Power PC architecture manufactured by IBM and Motorola. Motorola's 68000 family of microprocessors has achieved relative dominance of the embedded computer market for applications requiring a VME bus form factor. |
