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To: Snowshoe who wrote (3822)	1/11/1999 4:42:00 PM
From: Snowshoe	Read Replies (1) \| Respond to of 10309

Report says Windows CE Will Make Slow Progress biz.yahoo.com Monday January 11, 9:01 am Eastern Time Company Press Release SOURCE: Venture Development Corporation According to Venture Development Windows CE Will Make Slow Progress While it Assists Established Embedded OS Vendors -- Proprietary OS's Will Fall Increasingly Out of Favor NATICK, Mass., Jan. 11 /PRNewswire/ -- A new market study by VDC reveals that Microsoft faces a significant uphill battle as it attempts to penetrate the embedded systems marketplace, and that many of the established embedded OS and tools providers stand to benefit from all of the ''embedded hoopla'' being generated by Microsoft. Much of the conventional thinking about Microsoft's ability to quickly dominate embedded operating systems is wrong. According to the study, the barriers faced by Microsoft are formidable, including: - A market where chips, not OSs, continue to drive system design. - Market characteristics that represent natural barriers to the creation of a de facto standard embedded OS, including the need for extremely heterogeneous hardware and the absence of a dominant hardware provider who could drive CE into embedded systems. - The absence of marketers in the OS selection process, despite the fact that Microsoft's value proposition resonates most strongly with marketers. - A lack of embedded systems that rely upon Microsoft's software platform-based business model. = A significant lack of knowledge of the Win32 API among embedded developers, and; - A variety of other significant barriers, both strategic and technical, that will be difficult for Microsoft to address. Within certain segments of the embedded market, however, CE will achieve considerable acceptance during the next five years, particularly consumer electronics and industrial automation. VDC estimates that CE is likely to ship as many as 14.1 million runtime licenses by 2003. The report provides further breakdowns by five vertical markets and eleven specific applications. VDC research further confirms that rather than crushing established embedded OS suppliers, Windows CE is likely to create opportunities for them, as OEMs abandon their costly proprietary solutions. Nearly half of all developers surveyed who expressed interest in CE had previously used either a free or proprietary OS solution. And most of these developers were considering not only CE, but a variety of other commercial solutions including VxWorks and QNX. These findings, combined with the fact that the vast majority of developers evaluating CE are not adopting CE, provides further evidence that Microsoft is in fact enlarging the opportunity for commercial OS solutions for all commercial OS providers.