The rise and rise of embedded Linux
Published: 08 Apr 2005 11:30 BST
In the past two years, Wind River Systems got over its scorn for Linux. Now it's up to Ken Klein, chief executive for 15 months, to do more than embrace the open source operating system: he's got to find a way to profit from it.
Wind River specialises in embedded software used in computing devices such as DVD players and nerve gas detectors. The company has historically sold its VxWorks operating system for these tasks, but it now also pushes Linux.
"It's brain surgery, but we're doing it with a micro-scalpel," Klein said of the transformation. Linux revenue remains small so far, and there have been some slip-ups along the way: Klein had to revamp a partnership with Linux leader Red Hat, choosing instead to build its own version of Linux for most products.
But some things are clearly going right: The company turned an $8m (£4m) profit after four years in the red as revenue rose to $236m. The company expects revenue for its next fiscal year somewhere between $265m and $270m.
Wind River quietly began embracing Linux in October 2003, when the company started releasing programming tools that could be used to build software for the open source operating system as well as VxWorks. That same year, Klein took control of the company, replacing co-founder Jerry Fiddler as chairman and Tom St. Dennis as CEO. Since then, the company has released its first version of Linux, tailored for networking equipment, and another is due out soon.
Klein, 45, is relaxed and optimistic, saying he has banned cynicism and negativity at the company. But he's also willing to use an iron fist, replacing two-thirds of the managers in the two ranks below him. He talked with ZDNet UK sister site CNET News.com earlier this month at the company's headquarters in Alameda, California
Q: What has Wind River been, and what is it becoming?
We were closed and narrow in terms of our partnerships. We were taking a very adversarial approach toward Linux. We've turned 180 degrees. We're viewing Linux as incremental to our business. In set-top boxes, Linux is a great fit.
There's another area of change. Partnerships with semiconductor manufacturers before were relationships of convenience. Now customers are sick of semiconductor suppliers and software suppliers not playing very well in the sandbox together. They want a deep ecosystem of partnerships with the semiconductor manufacturers — MIPS, Freescale, ARM, Philips, Broadcom, Texas Instruments.
Why did you make the switch to Linux?
We responded to the demands of our customers. Customers, particularly in the telecommunications marketplace and to a lesser extent in consumer electronics, were making a beeline to Linux. Our customers have an aversion to putting Microsoft in any of their devices. They're not interested in seeing Microsoft usurp value from their devices. The availability of talent and applications and the fact that Linux is free from a runtime perspective — those factors created demand.
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