First tier Embedded Systems competitors are: Integrated Systems Inc. (INTS), Wind River Systems (WIND), Microware (to IPO sometime in mid-March), and Mentor Graphics (after acquiring MicroTech Research just recently).
Mentor Graphics (MENT) is an EDA company which dominates its newly acquired MicroTech division. This and MicroTech’s recent troubles takes MENT out of the realm of interesting Embedded Systems companies for the investor; although, MENT resources could make the old MicroTech Research a formidable competitor if they chose to make the investment, but I wouldn't count on it.
Integrated Systems started life as a design company, acquiring pSOS around 1990, and still depends on its Matrix X system design tools. It acquired a couple of companies last year, has various versions of its pSOS operating system , not to mention FLEXos, acquired from Novell when Novell realized that its only chance of making NEST work would be to be friends with all RTOS vendors, not a competitor. Integrated Systems is a confusing Embedded Systems play because of all the acquistions and related interests. Nevertheless, it seems to be succeeding nicely, mainly by emphasizing niche markets, ATM machines, video among others.
Microware is much smaller than the others, but may do very well if its emphasis on video products pays off. So far interactive TV has just been hype, because of unproven economics for providers. When it does come, it might take any of a variety of forms other than the set-top box. Nevertheless, Microware dominates set-top box design wins, including pSOS’s impressive win with HP. Probably more important, Microware has working relations with firms that will be software players on the server-side of interactive TV, like Oracle and SyBase. Like WIND, it is a pure play and deserves serious attention. If it has a problem, in my mind, it is the potential dominance that may come from the looming power of Wind River Systems. Tornado is an awesome product to compete against.
>"During the quarter, one of the Company's major competitors announced that it intends to be acquired
> by a company with significantly more resources. The Company expects that this acquisition will make
> the embedded software market more competitive."
My guess is INTS was speaking about the old MicroTech Research (MTEC), before they finalized their acquisition. You should realize that Integrated Systems was a reseller of MTEC’s tools, resulting in a suit over payments which was settled against Integrated Systems early in 1995. Since then, ISI has been acquiring and developing their own line of replacement tools, and no doubt has bad feelings about MicroTech.
To summarize, in the Embedded RTOS arena, there soon will be two pure plays: WIND and Microware Probably both companies will do just fine, something like Oracle, SyBase and Informix all doing well for their stockholders. I sense that many analysts and investors think Integrated Systems will do extremely well, but that is hard for me to call because they are building by acquisition, lacking the purity of WIND and Microware. |
