| VDC's view on new CE. NET licensing model |
May 06, 2003
Here is a perspective from embedded industry analyst, Venture Development Corp. (VDC) on today's announcement by Microsoft of revised CE .NET product structure and licensing . . .
Microsoft announces new CE .NET licensing
by Chris Lanfear Steve Balacco
In case you missed the announcement this morning, Microsoft has introduced a new licensing level for its Window CE .NET OS called Core. Windows CE .NET 4.2 Core (long name!) has the following features: - CE Kernel with file system
- Networking and communications protocols
- Some multimedia capabilities
"Core" is differentiated from the full feature version on CE called "Professional" by the absence of certain applications including Windows Messenger, WordPad, Remote Desktop Protocol and Internet Explorer 6.
Windows CE .NET 4.2 Core is designed for use in a low-cost embedded device, often consumer grade, such as entry-level VoIP phones, CD players, industrial automation equipment, PVRs, digital cameras, DVDs and others. The estimated cost is $3 per run time.
VDC's View
This licensing structure addresses some of the key problems facing Microsoft in the embedded market, including the inability of the company to play in the lower end of the embedded market space, particularly in consumer electronics. This lower end has high volumes, not much need for a rich user interface, and a tight bill of materials (BOM) where every cent counts.
"Core" provides basic OS services, networking capabilities and some multimedia ability, essentially stripping the OS down to the minimal level required for a basic embedded device. This pricing model now makes CE .NET price competitive on high-volume applications versus other commercial operating systems. A project team can now develop on CE .NET for $995 per seat plus the $3 (or less) per copy. When OEMs do the math they will start to see CE .NET making more sense than it used to.
Another interesting angle here is the ability to use the Professional version on high-end devices in the same product line or in later, more advanced versions with substantial amounts of reusable code as features and capabilities scale. This license will make it easier for OEMs to standardize on CE .NET across organizations or divisions. Things that might not be clear with the announcement: - $3 is the starting point for a single run-time license, the price drops from there
- OEMs will still have full access to all the benefits of working with Microsoft (product roadmap, IP indemnification, CE logo, etc)
- Multimedia includes: MP3, Windows media local playback
- Streaming is available only on the Pro version
Microsoft is venturing into a new side of the market for them, which will put them in competition with some established embedded OSs including VxWorks, MontaVista Linux, ThreadX and Nucleus that have strong followings among consumer electronics OEMs. The consumer electronics market has been one of the key markets that OS vendors have been competing for in the past couple of years. Traditionally licensed, royalty bearing OSs have been under pressure from the royalty-free/open source competition. Microsoft's announcement will further put pressure on the embedded vendors utilizing traditional business models and may have a negative effect on businesses of the royalty-free/open source competitors as well. This move takes Microsoft out of its comfort zone and directly into the heart of the embedded industry where their brand name will help them less and the OS becomes less of a differentiating feature for the end user.
Other Microsoft News
Microsoft announced a new non-commercial license, which complements their academic licenses announced over the last couple of years. The new license covers prototyping, seeding and test units. This move will be a boon to OEMs, academics and hobbyists alike.
This research bulletin is part of a series published Venture Development Corp. (VDC). Copyright © 2003 VDC. All rights reserved. Reproduced by WindowsForDevices.com with permission.
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