Release the embedded software: the electronics industry in transition

The electronics industry is in a transition from a hardware to a software dominated industry. Software already dominates the computer industry while its role in electronic products such as telecommunications equipment, medical systems and televisions is rapidly increasing. A four stage model that describes the transition of the electronics industry is presented in this paper. The four stages are the hardware stage, the embedded software stage, the proprietary software stage and the open system stage. The authors will argue that market forces will drive most of the electronics industries to the open system stage in which software is the driving force. Consequences for electronics companies are discussed and two possible strategies are outlined.