Transcript Slide 1

Network Anything.
Network Everything.
Take the Power of the Network to
More People, More Places, and More Things
UPnP Summit
Networked Devices in Billions
16
By 2010 95% of networked consumer devices will not be computers.
14
14.2 BILLION DEVICES
12
10
8
6
4
2
Computers
Other Devices
0
2002
2003
2004
2005
2006
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2007
2008
2009
2010
Source: Forrester
Consumers: Networked devices and services are important.
Somewhat
Important
18%
Not Important
6%
Don't Know
2%
Important
25%
Imperative
14%
Very Important
35%
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Source: Harbor
Consumers: Solutions are valuable not just hardware.
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Source: Harbor Research
Driving Factors
Consumer Networking Business
Media Distribution
Personalized
Content Aggregation
Content available anywhere inside and outside
the home, using the home network, the Internet,
and mobile storage.
Relevant information collected and associated with
music, photos, video, and other content, displayed
in a consistent way on all devices.
Integrated
Device Control
PCs and devices functioning together as a
uniform, automated system, abstracting
device-specific control semantics.
Distributed
User Interface
Consistent user experiences securely available
anywhere inside and outside the home through
the Internet.
Secure
Managed Services
Allowing trusted companies to provide reliable
services through networked PCs and devices.
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Basic Steps to deliver a networked device
1. Networking hardware integration
2. Mainstream protocol support
3. Embedded software/firmware development
4. Integration with external devices and/or services
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We have: Network hardware
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We have: The protocol
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Embedded software is too hard

Steep learning curve for each platform
 Operating Systems: wondrous variety with no standards
 Compilers and build tools: Often limited by platform
 Debugging tools: range from command line to graphical

Architecture limitations
 Floating point
 Persistent storage
 16/32 bit

Huge barrier to portability across different platforms

Solutions are locked into a single product line

Need embedded systems expertise

Prevents adoption and innovation
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Embedded Systems Case Study
B-2 Bomber (circa 1980)
$500MM each
136 Microprocessors
Quad redundant systems
Avionics and Software upgrade:
Declined by Congress
“Industry is already two new
issues of hardware and software
ahead (as it) often takes as long
to state a requirement for a new
system, get it designed, out on
contract, and installed.”
Gen. Michael E. Ryan,
Air Force Chief of Staff.
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Consumer case study
•
Think of your own home
•
When was the last time you purchased or replaced:
• Major appliance?
• Small appliance?
• Television?
• Stereo Receiver?
•
How many devices with processors do you have?
• My house = 253 “mostly” networked
•
How many of you would buy a networked appliance today?
•
What if you purchased two or more networked devices?
• Would you expect them to work together?
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A “Device Server” development platform is needed
 Provides a “desktop” style development environment
 Reduces the barriers to adopting embedded platforms
 Works with new and legacy devices
 Consolidates user experiences
 Augments peer to peer interaction
 Integrates with emerging network applications
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An “Out of the box” Experience
for the Networked Home
Services
SYS®
Application
Software
Internet
.NET
UPnP and Legacy Bridging
Device Control
Media Management
Object Database
Dynamic UI
Installer Friendly
Customizable
Auto Detection
Common Driver Model
Accessible UI
Extensible
Works out of the box
Etc..
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Database Access
New Languages
SOAP/XML
Web Services
Passport
Many Developers
News
Weather
Shopping
Email
Media
Health
and more…
Extended device networking demonstration
Providing an “out of the box” consumer experience
Distributed Media
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So what if it was as easier to develop UPnP firmware?
Much easier…
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Using great developer tools…
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Wizards…
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Templates…
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Protocols…
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Processors and networks…
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Develop and debug “on” the device…
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And deploy it…
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Wouldn’t that be great?
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The ramp has started
US Consumer Homes:
27MM will have networks in 2004
6MM
Wi-Fi nodes this year
33MM Wi-Fi nodes by 2006
253
My house
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Source: Cahners Instat
Evidence: CompUSA
Direct to consumer business
 40 Digital Living Centers
–Entertainment
–Energy Management
–Security
–Remote access
–Structured wiring
 200+ Endcap displays
–Home Entertainment
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
Founded in 1989 to provide network
connectivity for terminals and
printers

Sales, support and manufacturing in
Asia, Europe, United States

Growing Annual Sales from $50MM

Embedded Ethernet Market and
technology leader for Device and
Console servers

Market maker for Home and
Building Automation Software

Our Products in Millions of networkenabled devices

Over 20,000 satisfied customers
worldwide

Lantronix Headquarters, Irvine California
NASDAQ: LTRX
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