WIND RIVER® PLATFORM

FOR CONSUMER DEVICES

World Theatre Inc.

 Agenda

• Wind River platform products strategy

• Answering software complexity with
integrated platforms

• PLATFORM CD introduction
• The Embedded Enterprise Platform for
Digital Consumer devices

• New enterprise licensing business model

• Aligning our business with yours

• Feedback and discussion

• Tell us what you think!

CONFIDENTIAL © 2002 WIND RIVER SYSTEMS, INC. 2

What is Important to our
Customers?

Needs raised by customers

76%

60%

44%
40%

Meeting tight Simplifying Accessing Improving OEM

development transactions with external product quality
time lines WR services

CONFIDENTIAL © 2002 WIND RIVER SYSTEMS, INC. 3

 Addressing the Major Concerns of
our Customers

New Enterprise
Platform License
Products Model

Meeting tight development time lines Simplifying transactions with

Accessing external services Wind River
Improving OEM product quality

CONFIDENTIAL © 2002 WIND RIVER SYSTEMS, INC. 4

 The software complexity problem…

Application

Browser / GUI
Application Java
Advanced Interconnect
X Windows Advanced Networking
WindNet High Availability
Application Memory Management Memory Management
Multiprocessing Multiprocessing
File System File System File System
Application
Networking Networking Networking (IPv6)
Kernel Kernel Kernel Kernel

1980 1990 1996 2002

CONFIDENTIAL © 2002 WIND RIVER SYSTEMS, INC. 5

 Complexity is Reducing Innovation

> 50% of R&D budget is spent on integration and vendor selection

Circa 1995
Vendor Selection
System Integration
Development
Test
Manufacture
Circa 2002

0% 20% 40% 60% 80% 100%

Source: IDB
CONFIDENTIAL © 2002 WIND RIVER SYSTEMS, INC. 6
 Integration is the Largest
Engineering Risk

Adding or New features

replacing exponentially
components is increase
expensive and complexity
time consuming

CONFIDENTIAL © 2002 WIND RIVER SYSTEMS, INC. 7

 Platforms:
Beyond the Operating System

High Final Product

Level of integration / value

Your R&D spending

Specialized
Integrated
Integrated Platform
Operating Platform
Low
System
General Market Application
Purpose Specific Specific
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Wind River Platforms

Platform

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 WIND RIVER PLATFORM
FOR CONSUMER DEVICES

TORNADO IDE GNU & DIAB COMPILER

TOOLS
SNIFF+ PRO IDE WIND VIEW ANALYZER

Web Server SNMP Graphics & Multimedia

TCP/IP PPP & PPPoE 802.1x Security Flash File System

Ethernet USB 802.1x W LAN DOS File System

RUNTIME
VxWorks RTOS

BSP Developer Kit

Reference Hardware and Bring-up Tools

SERVICES WIND SPRINT Services

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 PLATFORM CD Highlights

• Rich package of development tools and run-time components

• Wide architecture support

• MIPS, ARM7/9, XScale, SH4, PowerPC, Intel Architecture

• Source code for graphics & networking stacks

• WindSprint services provided with Starter Kit

• 2-day tailored training program for project start-up

• Reference Hardware available for turnkey development system

• XScale PXA250 board available first; other architectures later

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 Ensuring Quality

• PLATFORM CD components drawn from mature technology

lines with extensive field testing and customer use

• Latest available patches and fixes included

• Platform quality assured through exhaustive system-level

testing

• Test documentation available on request

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 Plan of Intent

• IPv6 support coming soon!

• IPv6 host stack available as unintegrated option early 2003
• Full integration with PLATFORM CD in mid-2003

• TORNADO FOR HOME GATEWAYS (THG) will become

a superset of PLATFORM CD
• Will share common tool base, provide smooth upgrade path

• Application-specific Platform for iDTV

• Media File System + Java, delivered on PLATFORM CD
foundation

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 Wind River Value Proposition

• Reduced time to market

• Increased engineering efficiency

• Improved innovation

• Reduced COGS

• Decreased interaction costs

CONFIDENTIAL © 2002 WIND RIVER SYSTEMS, INC. 14

 Challenge and Opportunity

• 60% of our customers said they disliked our business

model
• WR doesn’t understand our business
• Pricing isn’t realistic
• Difficult to negotiate contract terms
• Difficult to predict costs and report shipments

• Enterprise Licensing Model

• Align with your business reality
• Clearly connect pricing with value
• Easier to do business
• Ease budgeting

CONFIDENTIAL © 2002 WIND RIVER SYSTEMS, INC. 15

 The New Enterprise License Model

Development Seats Production Licenses

• Site, architecture, host and project • Priced for Digital Consumer market
independent

• Enterprise-wide • Enterprise-wide
• Licensed for an organization – entire firm, • Aggregated volume across your
BU, division. organization (per product).
• New products benefit from the pricing
• Subscription based established for mature, high-volume
• Each seat includes rights to use all the products.
development tools and run-time components
in the licensed platform.
• Paid quarterly for the previous quarter,
• Priced per seat, per year based on actual aggregate volume
• Each Platform will have different per-seat shipped
pricing.

• Includes updates and upgrades

• We’ll need to consistently roll new value into
the Platforms in order to justify yearly
renewals.

• Includes service credits

• Service credits may be used for training or
professional services.
CONFIDENTIAL © 2002 WIND RIVER SYSTEMS, INC. 16
 Comparing Current Model with
New Model

• Cost of management Complex Standard

• Cost of engagement n x Sales, Legal Once
• Product cost
• License development seat Cost Cost
• Upgrade dev seat Cost Included
• Target a new CPU Cost Included
• Start a new project Cost Included
• Add a new component Cost Included
• License a second site Cost Included
• Train engineers Cost Included
• Maintenance 18 to 20% Included
• Production licenses Per project Aggregated

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 New Pricing Slide

• (Pricing will be incorporated when finalized)

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New Corporate Identity

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