| FAQ on the new CE .NET runtime pricing model |
May 06, 2003
[Updated May 8, 2003] -- Microsoft released the following "frequently asked questions" (FAQ) regarding the revised Windows CE .NET product structure and runtime pricing model announced earlier today. Microsoft comments on the reasons behind the changed pricing, device types targeted by the three license options, and how the new approach competes with so-called "free" embedded Linux offerings . . .
How does this change pricing for previous versions of Windows CE?
This does not affect pricing for previous versions of Windows CE. There is no direct equivalent of the Windows CE .NET 4.2 Core feature set to any previous version of Windows CE because it incorporates some of the new functionality in version 4.2, such as the Telephony User Interface and the Microsoft .NET Compact Framework. For detailed information on the runtime pricing across the various versions of Windows CE, contact your local Microsoft Embedded Distributor.
What kind of devices can be built using the new Core functionality?
The Core runtime license is targeted to the low-end device market-such as gateways, wireless access points, and various types of VoIP solutions that require base level functionality and may not require the full richness of the entire Windows CE .NET 4.2 feature set. The Core runtime license was created so these types of devices can utilize the power of Windows CE .NET 4.2 capabilities that are best suited to their requirements while leveraging a cost-effective pricing model. If companies choose to create a full-featured device, they have the option of implementing their own enhancements on top of the Core feature set or licensing additional Windows CE .NET 4.2 functionality.
Why are you changing the cost structure now?
After talking with partners and device manufacturers, and looking at Industry Trends, we have seen a new range of low-cost, reduced- and fixed-function devices, such as gateways, VoIP devices, wireless access points, and others. We wanted to provide partners with a more flexible approach for licensing Windows CE .NET for these devices and help them standardize on a single platform across their product line from low end to high end. This helps device manufacturers minimize development efforts because companies can then leverage their Windows Embedded expertise across a wide range of device designs.
How do these new runtime licenses enhance the intellectual property of other companies?
The new Core offering will enhance the intellectual property of other companies by enabling them to license a low-cost runtime and augment their design with the additional functionality of their choice or creation. By enabling companies to use a single, scalable operating system and development platform across their product line, the Core offering will speed innovation. Additionally, by providing an option that combines the desired technology and price, companies can enjoy the benefits of preserving intellectual property rights, guaranteed product updates, and timely, professional support that is not available from open-source software. Companies also have the option of licensing the Windows CE .NET 4.2 Professional or Professional Plus runtime licenses to provide additional out-of-the-box functionality, or they may create their own value-add technologies on top of the Windows CE .NET operating system.
Linux is free, so why would someone choose to pay $3 for an OS when building a device?
There certainly is a perception that Linux is free, but that can be misleading. Software licensing costs often are only a small part of the overall cost of developing and maintaining a total solution. We believe that when the full range of costs are fairly considered, Windows Embedded operating systems, and especially the new, low-cost Windows CE .NET 4.2 Core offering, compare very favorably with embedded Linux in terms of the total cost of development. The Windows Embedded operating systems offer: - Very low-price development tools for Windows CE .NET ($995 per developer). Linux vendors typically charge significant costs for development tools from $2,500-$10,000 per developer. This may equate to between 3 and 10 times that of a Windows CE offering.
- Additional benefits that a commercial operating system provides beyond what can be offered by open source. In the low end space, Windows CE .NET 4.2 provides:
- Best of class features and powerful development tools
- Fully tested, quality product updates
- A professional and predictable support model
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