During this QuickCast, VDC’s Chris Rezendes discusses the factors driving embedded cloud technology.

1. Embedded Hardware & Systems Practice
Christopher Rezendes – Executive Vice President
WEBCAST
Clouds in Embedded Markets and
JUNE 2011
Mission Critical Applications
© 2011 VDC Research Webcast
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
© 2011 VDC Research Webcast
Embedded Hardware & Systems
vdcresearch.com

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© 2011 VDC Research Webcast
AutoID & Transaction Automation
vdcresearch.com

4. Our Core Coverage Areas
AutoID & Transaction Automation Embedded Hardware & Systems Mobile & Wireless
Industrial Automation & Control Embedded Software & Tools Emerging Technologies
© 2011 VDC Research Webcast
Embedded Hardware & Systems
vdcresearch.com

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© 2011 VDC Research Webcast
Embedded Hardware & Systems
vdcresearch.com

6. Today’s Speaker
Christopher Rezendes
Executive Vice President
Chris has 20 years experience in embedded, industrial, defense and other mission critical and high
available technology industries.
He has more than 15 years experience in senior management and leadership positions at a number of IT
systems and professional services organizations. During that time Chris has initiated or expanded
coverage of a number of markets that VDC covers today.
Chris has advised many of the largest and most respected technology companies in a number of
technology segments worldwide. This work includes working closely with multiple levels of client
organizations from Product Managers through CEOs, providing decision support on a wide range of
product, market, channel, organization and corporate development opportunities.
He has also worked with many of the most successful private equity and venture capital firms in the
Americas and Europe. His work with the financial services community includes opportunity identification
and due diligence support on investments ranging from $30 million to nearly $3 billion.
Chris’ prior consulting experience includes Deloitte & Touche and Harbor Research. Prior to joining VDC
Research, Chris was VP and General Manager at Industrial Computer Source, now part of Kontron
GmbH. Chris is a graduate of Harvard University.
For complimentary insights and marketing data:
http://blog.vdcresearch.com/embedded_hw/
© 2011 VDC Research Webcast
AutoID & Transaction Automation
vdcresearch.com

7. Clouds are coming, but in fits and starts
 There are so many clouds already
 Many compelling reasons to investigate
 Many real operational and technical concerns to address
 Understanding all the options should be job one
 There are roles for every leader at every level of embedded market ecosystems
© 2011 VDC Research Webcast
Embedded Hardware & Systems
vdcresearch.com

8. Demand for clouds is growing across all verticals
Has your company deployed any IT/enterprise applications  Demand for visibility is
through the cloud? How about any embedded applications? one of the key drivers
(% of IT end-user respondents identifying)
of investment
Yes
40%  Access across
48%
34%
networks is a key
requirement
No, but commited to
0%
migrate in 2010
9%  Budgets remain under
12% aggressive scrutiny
No, but considering
migrating before 2012
20%  All three drivers alone
19% Embedded Applications
18%
would be enough to
UPDATE
prompt cloud
No, but are considering
migrating after 2012
20% investigation
12% IT/enterprise applications
20%  All three combined,
No and not considering it make it hard to find
5%
Embedded applications projects not
8%
11% considering cloud
Don't know
5%
4%
5%
0% 10% 20% 30% 40% 50% 60%
© 2011 VDC Research Webcast
Embedded Hardware & Systems
vdcresearch.com

9. Demand is being addressed by multiple cloud approaches
 Legislation, market
CloudS in Embedded Applications regulation drivers
shaping network
management policy
 Multiple clouds
 Local points of
presence (PoP)
Market Penetration
o On-site
infrastructure
New
o CPE
Application Application
30% Migration  New hardware and
Remote software platforms built
Supervision UTILITY ground-up SoA
Monitoring CLOUD ?
Device/ &Control  Multifactor security
Equipment DATA
Monitoring CLOUD ?  New roles for old
partners
2010 2012 2014 2016
© 2011 VDC Research Webcast
Embedded Hardware & Systems
vdcresearch.com

10. Some common approaches, beginning with local hardware
What are your main reasons for Questions around:
selecting software bundled on a local host
 Security
platform – the SEN?
(% of IT end-user respondents identifying)  Liabilities
Application requires local  Remote resources
redundant/backup points of
control  Wireless
 DPI in a 4GLTE paradigm
Customer requirement
Application requires a local
host point of control
Company policy requirement
Regulatory requirement
Don't know
0% 10% 20% 30% 40%
© 2011 VDC Research Webcast
Embedded Hardware & Systems
vdcresearch.com

11. Every level of embedded ecosystems will be affected by cloud migration
Embedded cloud migration(s) are not cap-ex free
Technical considerations start and end with security
 Policies for logical and physical access
 Technologies
Operational considerations represent another set of hurdles
 Solution Requirements: Ops drives information drives technologies
 Policy Negotiations: Open versus secure – who has what rights and when?
Budget for new enabling technologies that support all manner of embedded cloud
deployments, including:
 POP requirements in CPE and OSI modes Scalable Edge Nodes (SEN)
 Wireless security: What beyond DPI?
 sSOA – with hybrid, heterogeneous processing platforms
© 2011 VDC Research Webcast
Embedded Hardware & Systems
vdcresearch.com

12. Thank You for Attending this VDC QuickCast
For more information please contact:
Christopher Rezendes – Executive Vice President
cjr@vdcresearch.com | 508.653.9000 x120
Richard Dean – Senior Analyst/ Program Manager
rdean@vdcresearch.com | 508.653.9000 x152
Eric Gulliksen – Senior Analyst
ericg@vdcresearch.com | 508.653.9000 x147
Jonathan Hastings – Analyst
jhastings@vdcresearch.com | 508.653.9000 x127
For complimentary insights and marketing data:
http://blog.vdcresearch.com/embedded_hw/
© 2011 VDC Research Webcast
Embedded Hardware & Systems
vdcresearch.com