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To: James Connolly who wrote (9843)	8/24/2001 10:25:13 PM
From: voop	Read Replies (2) \| Respond to of 10309

Why aren't we rich yet?? (PR NEWSWIRE) IDC Forecasts Embedded Operating Systems Will Top One Billion U IDC Forecasts Embedded Operating Systems Will Top One Billion Units Shipped in 2003 FRAMINGHAM, Mass., Aug. 15 /PRNewswire/ -- Demand for comprehensive, easy to evolve, and reliable software platforms for OEM electronic products utilizing software run-time components is sending growth in the embedded operating systems market soaring. According to IDC, worldwide embedded OS shipments are expected to increase at a compound annual growth rate (CAGR) of 31%, from 363 million units in 1999 to over 1 billion units in 2003. "Proprietary environment operating system (PEOS) and real time operating system (RTOS) solutions will dominate the analytic framework through 2002, at which time special purpose operating system (SPOS) solutions will burst on the scene," said Paul Zorfass, senior analyst with IDC. Although the PEOS segment will continue to be the largest of all OS classes, IDC predicts its market share will erode to 49% in 2003, from 68% in 1999. The SPOS market, meanwhile, will experience explosive growth, increasing at a 1999-2003 CAGR of 99%. "The primary reason for this is the continued dominance of mobile and wireless phones," Zorfass said. Because of demand for mobile and wireless phones and other smart communicators, IDC projects the communications sector -- comprising both telecom and datacom -- will remain the largest embedded OS market segment, increasing market share from 56% of OS units shipped in 1999 to 59% in 2003. This sector will also grow the fastest, with shipments increasing at a 1999- 2003 CAGR of 33%. The office automations market will grow the second-fastest, with shipments increasing 30% during the same time. Despite lucrative opportunities in the embedded OS industry, several challenges confront many vendors in the market. The biggest one is developing business models with achievable pricing components. "This is difficult to fashion since vendors usually do not have a clear count of units shipped nor do they generally have access to OEM shipment data. In many instances, OEMs do not disclose the number of units shipped," added Zorfass. Embedded Operating Systems: Forecast, Market Analysis, and Segmentation (IDC #C2979) is one of four reports produced by IDC. The primary objective of this second report is to analyze the embedded operating systems market for shippable products. Market shares of embedded operating systems within shipped equipment in different markets are provided. Future trends and directions for the embedded operating systems marketplace are discussed. To purchase this report, call 508-988-7988 or email ctoffel@idc.com. About IDC IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at idc.com. IDC is a division of IDG, the world's leading IT media, research and exposition company. All product and company names may be trademarks or registered trademarks of their respective holders. MAKE YOUR OPINION COUNT - Click Here tbutton.prnewswire.com SOURCE IDC -0- 08/15/2001 /CONTACT: Dawn Daggett, +1-508-935-4108, ddaggett@idc.com, or Sharra Owens, +1-508-935-4258, sowens@idc.com, both of IDC/ /Company News On-Call: prnewswire.com /Web site: idc.com CO: IDC ST: Massachusetts IN: STW MLM PUB SU: