Competitors from across the hardware spectrum, from OEM to traditional embedded hardware, are being drawn to the exciting new embedded integration services market. Companies would be smart to jump on this wagon early – but what key trends are dictating the market’s future? During this QuickCast, VDC’s Jon Hastings sheds some light on the subject by providing an overview of how VDC segments the market, regional trends, what embedded services customers are looking for from their providers, and highlights of VDC's perspectives.

1. Embedded Hardware & Systems Practice
Chris Rommel – Vice President
Eric Gulliksen – Senior Analyst
Jonathan Hastings – Analyst
David Laing – Senior Analyst
QuickCast
The Opportunity around Embedded Integration
Services in 2012 and Beyond
February 2012
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

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

3. About Us
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o Detailed, Flexible Stakeholder Maps & Profiles
o Industry Development Scenarios
o Market Opportunity Fit Screening, Rating & Ranking
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

4. Our Core Coverage Areas
AutoID & Transaction Automation Embedded Hardware & Systems Mobile & Wireless
Industrial Automation & Control Embedded Software & Tools Emerging Technologies
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
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. We offer a range of services
designed to meet your specific thought leadership, opportunity assessment and corporate development needs.
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

6. Today’s Speaker
Jonathan Hastings
Analyst, Embedded Hardware & Systems
Prior to joining VDC, Jonathan worked several years in aerospace, including an engineer
position at General Electric Aviation. During that time, he developed knowledge in stress
analysis, aerospace design, Six Sigma, and project management. Jonathan holds a BS in
Mechanical Engineering from Brown University in Providence, RI. He has completed
additional coursework in economics, biology and legal studies. Jonathan previously
worked at VDC in the Industrial Automation practice conducting studies on surge
protection and chart recorder technologies.
For complimentary insights and marketing data:
http://blog.vdcresearch.com/embedded_hw/
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

7. Today’s Agenda
Services Overview
Services Regional Markets
Service Provider Satisfaction Ratings
Services Value
Conclusions
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com vdcresearch.com

8. Services Present Opportunities Throughout the Product Lifecycle
Beginning Product Lifecycle End
Consulting Services
Integration Services
Project Definition /
Pre-procurement Product Design & Development Product Deployment & Maintenance
Process
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

9. Communications Infrastructure is Powering Global Growth
Services Revenue Regional Services Revenue Regional Americas and Asia Pacific
Segmentation, 2010 Segmentation, 2013 will see greater need for
(Percent of Dollar Volume (Percent of Dollar Volume services to support the massive
Shipments) Shipments)
communications infrastructure
developments.
22% 24%
EMEA’s macroeconomic growth
is repressed, but this does not
preclude opportunities.
48% 49%
30% 28%
Americas EMEA Asia-Pacific
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

10. Price Remains Most Critical
Service Provider Satisfaction Rankings
(Mean of respondents)
Ranking
Price 2.5
Performance 2.8
Service 2.8
Vertical Industry Expertise 3.0
Reputation 4.0
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

11. Integration Services are Where the Money Is
Respondents Willingness to Pay More
for the Selected Services
(% of Communications Respondents Identifying)
48%
Hardware Integration 9%
45%
Custom Design/Manufacture 11%
39%
Sales & Marketing Support 17%
37%
Technical Support 13%
35%
Program/Project Mgt. 24%
35%
Maintenance Services 16%
33%
Supply Chain/Logistics Mgt. 18%
33%
Field Application Engineers 17%
28%
Product Lifecycle Management 23%
14%
Other, Unspecified Services 71%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Yes No
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

12. Services are a Great Opportunity but Have Subtle Requirements
To gain market share in the embedded services markets, vendors follow these guidelines:
o Align services with particular vertical markets
o Support of longer lifecycle needs is crucial
o The communications & networking segment is prime target for integration services
o Ruggedization is key in mil/aero, but is relevant to other segments
o Price is critical, but quality of services and service types drive repeat business
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

13. Thank You for Attending this VDC QuickCast
For more information please contact:
Bob Perugini – Account Director
rperugini@vdcresearch.com | 508.653.9000 x144
Chris Rommel – Vice President, Embedded Hardware & Software
email@vdcresearch.com | 508.653.9000
J. Eric Gulliksen – Senior Analyst
ericg@vdcresearch.com | 508.653.9000
David Laing – Senior Analyst
dlaing@vdcresearch.com | 508.653.9000
Jonathan Hastings – Analyst
jhastings@vdcresearch.com | 508.653.9000
For complimentary insights and marketing data:
http://blog.vdcresearch.com/embedded_hw/
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com