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To: the hube who wrote (16657)	1/28/2000 1:14:00 AM
From: the hube	Respond to of 54805

WIND How much of a royalty do they get? It depends, among other things on the expected volume of the product. For example, when they set the I2O standard with Intel, their agreement calls for a royalty of about $1.50 to $2.00 per i960 processor that Intel sells that is used in I20. They have publicly said that they will make about $5 million this year from that arrangement, and that it is ramping quickly. It is reasonable to think the arrangements for the Intel AXP communications processor will be similar. How many of those chips do you think Intel will sell? My guess is a lot. For GM powertrains or antilock brakes, it may be a similar number. How many cars does GM sell. I read somewhere that WIND claims a 65% share (before the merger) of the Japanese in car navigation systems. At a couple of bucks each, how much could that be? For specialized applications, like certain military or aerospace projects, the number of units would be much less, and it is reasonable to think that the royalty per copy would be higher. Another thing that WIND has started to do is to come out with complete solutions. The first of these is Tornado for Managed Switches, which gives you all the software you need to run a communiications switch (not just the RTOS, but also all of the middleware). Pop in a processor, stick it in a box, and you are in business. I think I recall on a conference call that they indicated that the royalty for this type of product was an order of magnitude higher than for just the RTOS. They have said that they will be coming out with more "complete solutions" like this in the future. I think one reason for the merger is to get the engineers because they realize that they are at a critical point, and that they need to ship everything they can as rapidly as possible.