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Technology Stocks : Wind River Systems - Technical Analysis

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To: Mitchell Jones who wrote (104)1/28/1998 6:12:00 PM
From: William Sheppard  Read Replies (1) of 431
 
Mitch wrote:

The real revenue (as far as royalties are concerned) lies in the handset,not the infrastructure. This causes me to question my "barrier to entry" understanding regarding RTOS's. Will Nortel use OS9 for handsets and VxWorks for infrastructure? Why would they do that?

In this particular case, the infrastructure doesn't talk any differently to a Nortel handset (phone) than it does a Nokia, Ericsson, or Motorola. So there's no technical linkage between the two. That would leave business or training factors as the only advantage for using the same RTOS on both (already have the development tools, or already have engineers trained on that particular RTOS). If the handsets come from a different facility than the infrastructure, as I suspect they do, then neither of these reasons might apply.

It also may well be that one RTOS is better suited for the handset, while the other is better suited for the infrastructure. Indeed, OS-9 is more prevalent in consumer products, while VxWorks is more common in telecom infrastructure.

Bill
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