The document discusses business opportunities in Advanced Telecommunications Computing Architecture (ATCA) resulting from standardization. It draws an analogy to the personal computer industry, noting that standards-based components experience growing volume and falling prices. This enables robust chip and software businesses while physical layer manufacturing moves to large original design manufacturers. The implications are that semiconductors, software, system integrators and original design manufacturers will be long-term winners, while board-level vendors and contract manufacturers may be long-term losers.

1. Business Investment
Opportunities in ATCA:
Innovation within Standards
B.W.Stuck
Managing Director
Signal Lake

2. Business Model Consequences:
xTCA Analogy to PC Standardization
Goal
– Standard interfaces between modules
– Standard bus/switch
– Interoperable components with standard
interfaces vs proprietary bundled
components
Industry Standards Process
– Initially IBM for personal computers
– Now PICMG

3. PC Business Model Evolution
Standards based components enjoy
growing volume (units up, pricing down)
Substantial reduction in costs, margins,
prices for components and PCs
Enablement of robust chip and software
plays
Physical layer moves to very large original
design manufacturers

4. xTCA Economic Drivers
Broad adoption of standards-based components
Substantial reduction in costs, margins, prices
(but due to price elasticity, will be offset by more
units of equipment)
Physical layer moves to original design
manufacturers
– Board level manufacturing moves to Asia
– Niche board specialists get squeezed
Enablement of robust chip and software plays
– Software enabled by HPI standard, SAF
– Chips leads to major new industry players

5. Investment Implications
Long Term Winners
– Semiconductors
– Software
– System integrators
– Original design manufacturers
Long Term Losers
– Board level vendors
– Contract manufacturers