OEMs face increasing levels of complexity from integrating new silicon to the development and integration of software code from various sources. In addition to standalone tool suppliers, competitive market dynamics has created choice in the source and selection of tools that can be acquired as part of a commercial OS platform, available through the open source community, or available through hardware suppliers. For standalone tool suppliers, the market challenge is further complicated by the anticipated decrease in use of in-house developed target OSes, where the use of these tools represents an important source of income for suppliers. During this QuickCast, VDC's Steve Balacco lays out some of the challenges and concerns for the software development tools market.

1. Embedded Software & Tools Practice
Chris Rommel – VP, Embedded Hardware & Software
Stephen Balacco – Director
André Girard – Senior Analyst
Jared Weiner – Analyst
QuickCast
A Tough Business – Highly Fragmented & Under Pressure
September 2012 A Market Update on Software Development & Multicore Tools
© 2012 VDC Research QuickCast
Embedded Software & Tools
vdcresearch.com

2. Recording Available
A full audio recording is available for download at:
http://vdcresearch.com/market_research/embedded_software/freeresearch.aspx
© 2012 VDC Research QuickCast
Embedded Software & Tools
vdcresearch.com

3. About Us
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© 2012 VDC Research QuickCast
Embedded Software & Tools
vdcresearch.com

4. Our Core Coverage Areas
AutoID & Transaction Automation Embedded Hardware & Systems
Embedded Software & Tools Mobile & Wireless
© 2012 VDC Research QuickCast
Embedded Software & Tools
vdcresearch.com

5. Ways to Work With Us
Our market research is the basis for the many other ways that VDC can help you to grow your business. Our clients rely on us to
provide actionable insights that support their most important strategic initiatives including: corporate development projects,
opportunity assessments and lead generation programs.
© 2012 VDC Research QuickCast
Embedded Software & Tools
vdcresearch.com

6. Today’s Speaker
Stephen Balacco
Director, Embedded Software & Tools
Stephen has more than eleven years experience conducting market research studies and
managing all of the market research programs for VDC’s Embedded Software & Tools
practice. His project-related experience is diverse and includes coverage of a number of
embedded software technologies for syndicated research including embedded operating
systems, software development tools, java, databases, and Linux, Windows Embedded,
market statistics, and test automation tools. Stephen has also conducted and managed
consulting research projects focusing on market and technology assessments, product
and channel development initiatives, market penetration, competitive analyses, and due
diligence support for M&A activity. Stephen has deep knowledge of a wide range of
embedded software technologies, their applications, and related customer requirements
through his years of market coverage. Prior to working for VDC, Stephen worked for more
than thirty years in the information technology sector developing software, sales, and
business development. Stephen holds a BSBA from Eastern Nazarene College.
For complimentary insights and marketing data:
http://blog.vdcresearch.com/embedded_sw/
© 2012 VDC Research QuickCast
Embedded Software & Tools
vdcresearch.com

7. Today’s Agenda
Project Start Considerations
What’s Important in Selecting Tools
Types of Tools in Use
Key Takeaways
2012 Research Programs
Contact Information
© 2012 VDC Research QuickCast
Embedded Software & Tools
vdcresearch.com vdcresearch.com

8. Software Development Tools
Where do engineers go for information?
SELECT ENGINEERS’ REQUIREMENTS & PREFERENCES
Resources Most Useful for Informing Component Selected First for the
the Selection/Purchase of Embedded Current Project
Software Solutions (Percent of Respondents)
(Percent of Respondents)
Peers/Co-workers 19%
17%
Industry Publications 18%
Online Forums/User Groups 16%
38%
14%
Vendor Websites 15%
Vendor Sales Reps 10%
Blogs 9%
14%
Trade Shows 8% 17%
Vendor Webinars 4%
Processor(s)
Embedded/Mobile Operating System(s)
Other 1%
Application(s)
Software Development Tools
0% 5% 10% 15% 20%
Don't Know
© 2012 VDC Research QuickCast
Embedded Software & Tools
vdcresearch.com

9. Software Development Tools
Cost, ease of use performance and past experience top factors
SELECT ENGINEERS’ REQUIREMENTS & PREFERENCES
Characteristics Most Important When Primary Host Development Platform Used on
Selecting Tools Used the Current Project & Expected in Two Years
(Percent of Respondents) (Percent of Respondents)
Price/Cost 43%
Windows 7 29%
Ease of Use 34% 47%
Technical Capabilities/Performance 33%
Windows XP 29%
29% 8%
Familiarity w/Tools/Past Experience
w/Vendor
23% 17%
Compatibility/Interoperability Linux – Commercially Supplied
17%
18%
Vendor Technical Support
13% Linux – Publicly Obtained 15%
Reputation of Vendor
17%
12%
Variety Microprocessors Supported
Unix 5%
12%
Availability Other Tools, OS(s), Run-
6%
time Solutions
9%
Multiprocessing Support
Mac OS 3%
9%
Tool Certified/Qualified to 4%
International Safety Stds
9%
Support for Open/Industry Windows Vista 2%
Standards
Vendor Engineering & 6% 1%
Customization Services Current Project
0% 10% 20% 30% 40% 50% Expected in Two Years 0% 10% 20% 30% 40% 50%
Note: Sums to more than 100% due to multiple responses.
© 2012 VDC Research QuickCast
Embedded Software & Tools
vdcresearch.com

10. Software Development Tools
Types of tools used by engineers to develop software
Types of Tools Used by Engineer Integrated Development Environment(s) Used
on the Current Project by Engineers on Current Project
(Percent of Respondents) (Percent of Respondents)
Compilers 60% Eclipse Platform SDK (OSS) 27%
Visual Studio/Visual C++/Platform… 21%
Debuggers 56%
Embedded Workbench (IAR) 13%
Editors 54%
µVision (Keil, An ARM Co.) 12%
Build Tools 45%
MPLAB (Microchip) 11%
JTAG Debuggers/In-circuit Emulators 38% 9%
Code Composer Studio (TI)
Static Analysis Tools
22% Xilinx SDK/EDK (Xilinx) 8%
18% AVR Studio (Atmel) 8%
Dynamic Software Testing Tools
GCC/GDB (open source) 7%
Virtual Platforms/VSPS Tools 17%
CodeWarrior (Freescale) 6%
SSLM Modeling Tools 15%
Quartus (Altera) 5%
(std-language-based)
Model-based Software Testing Tools 13% 5%
MULTI (Green Hills)
Instruction Set Simulators 13% VisualDSP++ (Analog)
3%
12% Workbench (Wind River)
3%
Dynamic GUI/HMI Design Tools
TRACE32 (Lauterbach) 3%
Security Management Tools 11%
Delphi IDE 3%
SSLM Modeling Tools 8%
Other Commercial IDE 18%
(proprietary-language-based)
None of the Above 8% 7%
Other Open Source IDE
Don't Know/Not Yet Decided
5% 7%
Other Semiconductor IDE
0% 10% 20% 30% 40% 50% 60% 70% 0% 5% 10% 15% 20% 25% 30%
© 2012 VDC Research QuickCast
Embedded Software & Tools
vdcresearch.com

11. Software Development Tools
Key takeaways
Highly Fragmented Market
 Three suppliers represent approximately 50% of the commercial market
Market Under Pressure
 Migration from proprietary / in-house developed OSes
 OS suppliers offering integrated and optimized tools
 Hardware and silicon suppliers finding value bringing tool offerings in-house
 Open source solutions popular with developers looking for low, no-cost development tool solutions
Complexity Driving the Use of More Sophisticated Tools
 Span software development lifecycle from requirements definition through post-deployment
What You Need To Know
 For product information – engineers look to peers / co-workers, industry pubs, and on-line forums
 Processor selection rules – first component selected
 Cost, ease of use, technical capabilities and past experience key factors in selection
 Make sure development tools can be used on Windows-based host development platform
© 2012 VDC Research QuickCast
Embedded Software & Tools
vdcresearch.com

12. 2012 Research Programs
Diverse technology coverage with expert analysis
Strategic Insights 2012: Embedded Software & System Lifecycle
Software Market Management Tools
Opportunities & Forecasts Through 2014 Opportunities & Forecast Through 2014
 Track 1: Fast Forward: Insight for Leaders  Software & System Modeling Tools
 Track 2: Embedded Software Engineering Technologies  Automated Test & Verification Tools
 Track 3: Embedded Systems Engineering Survey Data  Requirements Management / Definition & Source /
Change / Configuration Management Tools
 Track 4: Vertical Markets
 Agile in Embedded & Enterprise Systems
 Product Lifecycle Management / Application Lifecycle
Management Integration – An Industry Brief
 VDC Target Competitor Maps
© 2012 VDC Research QuickCast
Embedded Software & Tools
vdcresearch.com

13. 2012 Research Programs – continued
New in 2012 – Voice of the Customer
Voice of the Customer: Security & The Internet of Things
Formulate & Implement a Best-in-Class Security Strategy
 Quarterly Report 1: Device Manufacturers & OEMs’ Security Technology Adoption Trends, Budgets & Buying
 Quarterly Report 2: Consumer Preferences & Perceptions Analysis
 Quarterly Report 3: Internet of Things: Security Considerations for Enterprise IT & ISPs
 Quarterly Report 4: Vendor Spotlights
Voice of the Customer: Rich Media & Big Data in Embedded Systems
Identify Emerging Opportunities From the Next Generation of Embedded Systems
 Quarterly Report 1: Rich Media & Data Content – Trends, Drivers & Solutions
 Quarterly Report 2: Cloud Services & Analytics Business Opportunities
 Quarterly Report 3: OEM Budgets & Spending
 Quarterly Report 4: Vendor Spotlights
Voice of the Customer: M2M Communications
Connecting Next Generation Devices
 Quarterly Report 1: M2M Device Requirements & Deployment Options
 Quarterly Report 2: OEM M2M Solution Budgets, Buying & Sourcing
 Quarterly Report 3: The Evolving M2M Ecosystem & Product Design Considerations
 Quarterly Report 4: Vendor Spotlights
© 2012 VDC Research QuickCast
Embedded Software & Tools
vdcresearch.com

14. Thank You for Attending this VDC QuickCast
For more information please contact:
Mike Collette – Vice President, Sales & Enterprise Accounts
info@vdcresearch.com | 508.653.9000 x112
Chris Rommel – Vice President, Embedded Hardware & Software
Stephen Balacco – Director, Embedded Software & Tools
André Girard – Senior Analyst, Embedded Software & Tools
Jared Weiner – Analyst, Embedded Software & Tools
For complimentary insights and marketing data:
http://blog.vdcresearch.com/embedded_sw/
© 2012 VDC Research QuickCast
Embedded Software & Tools
vdcresearch.com