1. Searching for the Total Size of the Embedded Software Engineering Market? FEBRUARY 2011 WEBCAST Steve Balacco– Practice Director Christopher Rommel– Senior Analyst Jared Weiner – Analyst You’re not alone – it’s the most sought after statistic and frequently asked question of VDC

2. Recording Available A full audio recording is available for download at: http://www.vdcresearch.com/market_research/embedded_software/freeresearch.aspx

4. Deeply Segmented Data

5. Expert Insights

7. Transparent Tools & Methodology

8. Highly Customized Survey Guides & Output Templates

9. Sophisticated Market Estimate & Forecast Models

10. Detailed, Flexible Stakeholder Maps & Profiles

11. Industry Development Scenarios

13. Ways to Work With Us Syndicated Research Our syndicated research is the basis for the many ways VDC can help you grow your business. We offer a wide variety of services designed to meet specific tactical and strategic decision support needs. All of our services are built on a foundation of highly skilled professionals applying robust methodologies to VDC’s large and continuously refreshed datasets.

14. Today’s Speaker Stephen Balacco Practice Director, Embedded Software & Tools Practice Steve has more than ten years experience conducting market research studies and managing all of the market research programs for VDC’s Embedded Software and Tools practice. His project-related experience is diverse and includes coverage of a number of embedded software technologies for syndicated research including embedded operating systems, software development tools, java, databases, and Linux, Windows Embedded, market statistics, and test automation tools. Steve holds a BSBA from Eastern Nazarene College.

15. Proliferation of Embedded Computing Presenting Opportunity to Solution Suppliers > 10 Billion processors ship annually 98% Embedded Multi-billion dollar market for embedded software and tools Amount of software content defining system functionality and end product value continues to increase Continuing shift to software as a critical element of the device/system engineering process Software development costs are greater than 50% of total development costs Engineers performing tasks outside of their primary discipline Development projects under pressure – > 40% behind schedule In 2010, >10 Billion connected embedded devices So what is the opportunity? Where do I focus my strategy? How big is the total market for embedded software engineering? What regions and industries are growing the fastest? Are my products aligned with types of investments being made by engineering organizations for commercial software solutions? What’s the population for the number of embedded engineers and how are they segmented by industry?

17. A tool and methodology for estimating and forecasting key metrics in the embedded systems market.

18. Output offers a detailed view of specific data for certain segments of interest across geographies, industries and engineer types.

19. Key metrics describing the growth and health of the embedded industry

20. Number and types of embedded software engineers

21. Number of embedded project starts

22. Commercial products spend

23. R&D labor spend

24. Why should these metrics be important to you?

25. Identifies the potential for development seats

26. Number of project starts reveals opportunities

27. Commercial product spend indicates what type of product investments are being made and inform in formulating product strategies.

28. R&D labor spend – the hidden opportunity for commercial software solution providers.Number of Engineers Timeon-Task R&DSpend $B Commercial ProductsSpend

29. So How Many Embedded Engineers Are There? TMESE Embedded Engineer Estimates 2009 ~ 820k 2010 ~ 880k YoY growth > 7% Software & QA/Test Engineers Grew the Fastest Industry View Automotive, industrial automation, mil/aero, and telecom/datacom have the largest population of engineers Regardless of industry, software engineers represent the largest population Key Drivers Increasingly complex project requirements, shrinking time-to-market windows Anticipated software growth out pacing growth in human engineering resources Average embedded project has > one million lines of software code >7%

30. Total Market for Embedded Software Engineering TMESE Embedded Market Size Estimates > $40B market in 2009 growing to nearly $50B in 2010 Software engineering labor spend represents > 90% for both years Industry View Automotive, consumer electronics, and mobile phones growing fastest Regardless of industry, labor spend dwarfs spend on commercial products Key Drivers Continued reacceleration of R&D spending; organic embedded device market growth Demand for higher levels of connectivity capabilities Infiltration of consumer feature sets (UIs, etc.) into new device classes Growing demand for COTS SW/tools Increasing percentage of total development cost attributable to SW >11%

31. Continued Growth Forecasted Proliferation of embedded devices/systems Improving macroeconomic conditions Key Growth Drivers Rapid growth of the mobile device market Growing complexity and increased software content More complex system/hardware components/ architectures Implementation of more sophisticated engineering methods Utilization of more advanced tools, SW Spending on engineering labor represents a large piece of the opportunity for software suppliers – Hidden Opportunity If your looking for an embedded market TAM or what VDC calls our TMESE – trends – or opportunities – give us a call Modeling Tools Development Tools Testing Tools 3rd Party Runtime Software Operating Systems Spend on Commercial Embedded Software Solutions Spend on Embedded Software Engineering Labor Algorithm Engineers Software Engineers System Engineers Board Engineers Test Engineers IC/SoC Engineers Conclusions

32. Thank You for Attending this VDC Webcast For more information please contact: Cyril Bernard – Account Directorcbernard@vdcresearch.com|508.653.9000x142 Stephen Balacco – Practice Director sbalacco@vdcresearch.com|508.653.9000x124 Christopher Rommel– Senior Analystcrommel@vdcresearch.com| 508.653.9000 x123 Jared Weiner – Analystjweiner@vdcresearch.com|508.653.9000 x127