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"We have seen huge success with the new business model," says Mr Ajit Edlabadkar, Country Manager, WindRiver Systems India.

Bangalore , Aug. 13

WINDRIVER Systems has recently launched its business model of charging annual licencing fee for its design tools and operating system in India.

Mr Ajit Edlabadkar, Country Manager, WindRiver Systems India, said affordability of the embedded software design and development tools, and the operating system was a major issue for the Indian vendors as the costs were high. As a result, customers used to provide the tools and operating systems for Indian vendors, thereby impacting margins.

However, with the introduction of the new business model, wherein licence fee is being charged on an annual basis against the earlier per user/per project basis, Indian vendors can afford to buy the development tools on their own. The new model is flexible and is site-, architecture-, host- and project- independent.

"The change in model equips small time vendors with the ability to take up embedded projects, even while ensuring better profitability for the big vendors apart from instilling confidence among the customers while outsourcing," Mr Edlabadkar said.

"We have seen huge success with the new business model, introduced few months back, and have signed up some six local companies and about four global corporations in India," he said.

WindRiver has already issued some 60 licences and expects to sell about 50 licences per quarter in India. WindRiver, which commands more than 30 per cent of the global commercial embedded software market, expects a 30 per cent growth next year in India, while the growth is likely to stay flat in the current year.

The downturn in the global telecom sector is still impacting the development activity in the embedded sector, whereas verticals such as consumer electronics, aerospace and defence, storage area networks are driving the demand, he added.

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