EMBEDDED COTS SYSTEMS IN MILITARY, AEROSPACE AND DEFENSE APPLICATIONS, 2007 4th EDITION VOLUME 03: NORTH AMERICAN MERCHANT COMPUTER SYSTEMS MAKET ASSESSMENT

Table of Contents

I EXECUTIVE SUMMARY

• COMBINED NORTH AMERICAN AND EUROPEAN COTS INTEGRATED SYSTEM MARKET
• THE NORTH AMERICAN COTS INTEGRATED SYSTEM MARKET
• LEADING NORTH AMERICAN COTS INTEGRATED SYSTEM SUPPLIERS
• THE NORTH AMERICAN COTS INTEGRATED PASSIVE BACKPLANE SYSTEM MARKET
• LEADING NORTH AMERICAN COTS INTEGRATED PASSIVE BACKPLANE SYSTEM SUPPLIERS
• LEADING NORTH AMERICAN COTS INTEGRATED VME SYSTEM SUPPLIERS
• LEADING NORTH AMERICAN COTS INTEGRATED COMPACTPCI SYSTEM SUPPLIERS

II SCOPE AND METHODOLOGY

• SCOPE
• Definitions of Terms
• Segmentation
• METHODOLOGY
• Supply Side Research
• Demand Side Research

III INDUSTRY STRUCTURE

• HISTORICAL MILESTONES
• ADVANTAGES OF COTS
• COTS DEFINITION AND CRITERIA
• VDC Definition
• Specifications and the Key to COTS
• What Isn' t COTS?
• THE COTS PROCESS
• Stage I - Identification and Confirmation of Need
• Stage II - Specification
• Stage III -Quotation or Bid, Contractor Selection, Allocation of Funds
• Stage IV - Manufacturing through Delivery
• INDUSTRY PARTICIPANTS
• Specifiers and Decision Makers
• Technology Providers
• TRADE ASSOCIATIONS
• HyperTransport™ Consortium
• InfiniBandTM Trade Association (IBTA)
• PC/104 Embedded Consortium
• PCI Industrial Computer Manufacturers Group (PICMG)®
• PCI Special Interest Group (PCI SIG)®
• PXI Systems Alliance (PXISA)
• RapidIO® Trade Association
• VMEbus International Trade Association (VITA)®
• VXIbus Consortium
• SIGNIFICANT RECENT MERGERS AND ACQUISITIONS

IV DEFENSE EXPENDITURES AND OUTLOOK

• NORTH AMERICAN DEFENSE SPENDING
• DOD BUDGETS

V NORTH AMERICAN COTS INTEGRATED SYSTEMS MARKET OVERVIEW

• COMBINED COTS SYSTEM MARKET
• NORTH AMERICAN COTS SYSTEMS MARKET
• Product Types
• RoHS Compliance
• Life Cycles
• Distribution Channels
• Customer Classes
• Leading COTS Board Suppliers

VI NORTH AMERICAN COTS INTEGRATED PASSIVE BACK PLANE SYSTEMS

• TOTAL COTS PASSIVE BACKPLANE INTEGRATED SYSTEMS MARKET - NORTH AMERICA
• Leading Passive Backplane Integrated System Vendors
• VME INTEGRATED SYSTEMS
• End User Services
• Electronics Platform Classifications
• Electronics Mission Classifications
• VME Architectures
• Backplane Switch Fabrics
• Board Sizes
• Board Cooling Methods
• Ruggedization Classes
• Reliability Enhancements
• Power Supply Types
• Liquid Cooled Power Supply Use
• Primary Processor Use
• Number of Processors Used
• Operating System Use
• Appropriate Allocation of Revenues
• Leading VME Integrated System Vendors
• COMPACTPCI INTEGRATED SYSTEMS
• End User Services
• Electronics Platform Classifications
• Electronics Mission Classifications
• CompactPCI Architectures
• Board Sizes
• Board Cooling Methods
• Ruggedization Classes
• Reliability Enhancements
• Power Supply Types
• Liquid Cooled Power Supply Use
• Primary Processor Use
• Number of Processors Used
• Operating System Use
• Appropriate Allocation of Revenues
• Leading CompactPCI Integrated System Vendors
• ATCA AND MICROTCA INTEGRATED SYSTEMS
• End-User Services
• Electronics Platform Classifications

VII COTS INTEGRATED SYSTEMS USER DATA

• DEMAND-SIDE DATA
• Respondent Demographics
• Projects Begun, Team Sizes, Customers
• Electronics Platform and Mission Classifications
• Integrated System Sourcing
• Number of Computer Platforms Used
• Bus Architectures/Form Factors
• VME Platform Types Used in Systems
• CompactPCI Platform Types Used in Systems
• Backplane Switch Fabric Usage in Systems
• Switch Fabric Usage Between Boxes
• Functional Board Types Used in Systems
• CPU Usage on SBCs Used in Systems
• CPU Configurations on SBCs Used in Systems
• DSP Configurations on DSP Boards Used in Systems
• Ruggedized Board Usage in Systems
• VITA 47 Compliance
• Board Cooling Methods Used in Systems
• System Cooling Methods
• System Working Environment (Ranges)
• System Environmental Protection
• System Reliability Enhancements
• System OS/RTOS Use
• System Application Software
• Software Development Tools Importance
• RoHS Compliance
• Sources for Learning about COTS Computer System Products

VIII OBSERVATIONS AND RECOMMENDATIONS

• OVERALL MARKET SIZE AND GROWTH
• COTS
• COTS OPPORTUNITIES
• Supply, Maintenance and Logistics
• The Captive Market
• RoHS
• COTS TRENDS, OBSERVATIONS AND RECOMMENDATIONS: PRODUCTS
• Platforms
• Passive Backplane Architectures
• Switch Fabric Use
• Silicon
• TECHNOLOGY REFRESH AND INSERTION, OBSOLESCENCE MANAGEMENT, DIMINISHING MATERIAL SUPPLY (DMS) AND MATERIALS SHORTAGES (MS)
• SALES AND MARKETING, DISTRIBUTION AND SUPPORT

IX VENDOR PROFILES

• AITECH DEFENSE SYSTEMS, INC.
• BAE SYSTEMS, PLC
• CRYSTAL GROUP, INC
• CURTISS WRIGHT CONTROLS EMBEDDED COMPUTING
• DRS TECHNOLOGIES, INC.
• GE FANUC INTELLIGENT PLATFORMS
• GENERAL DYNAMICS
• GENERAL MICRO SYSTEMS
• KONTRON AG
• L-3 COMMUNICATIONS CORPORATION
• LOCKHEED MARTIN CORPORATION
• MERCURY COMPUTER SYSTEMS
• NALLATECH INC.
• PENTEK, INC.
• PERFORMANCE TECHNOLOGIES, INC.
• TECHNOLOGY ADVANCEMENT GROUP, INC. - TAG
• THALES COMPUTERS
• THEMIS COMPUTER
• VMETRO

APPENDIX: FY 2006 PRIME CONTRACTOR DATA

LIST OF EXHIBITS

I EXECUTIVE SUMMARY

• I-1 Combined North American and European Union COTS Merchant Integrated System Shipments and Projections, 2006-2011 (US$ in Millions)
• I-2 Regional COTS Merchant Integrated System Markets, North America & European Union, 2006 & 2009 (% of Dollar Volume Shipments)
• I-3 North American COTS Merchant Integrated Systems Shipments and Projections by Product Type, 2006 & 2008 (% of Dollar Volume Shipments)
• I-4 Leading Vendors of COTS Integrated Computer Systems, North America, 2006
• I-5 North American COTS Passive Backplane Systems Shipments and Projections, 2006-2011 (US$ in Millions)
• I-6 North American COTS Passive Backplane Systems Shipments by Primary Bus Architecture, 2006-2011 (US$ in Millions)
• I-7 Leading Vendors of COTS Passive Backplane Integrated Systems, North America, 2006
• I-8 Leading Vendors of COTS VME Integrated Systems, North America, 2006
• I-9 Leading Vendors of COTS CompactPCI Integrated Systems, North America, 2006

III INDUSTRY STRUCTUR E

• III-1 The COTS Process
• III-2 Industry Structure

IV DEFENSE EXPENDITURES AND OUTLOOK

• IV-1 2006 Military Expenditures of the Three Major North American Countries (US$ in Billions)
• IV-2A FY 2006 DoD Discretionary Total Obligational Authority (TOA) Direct Budget Plan by Title, including projections (US$ in Billions)
• IV-2B FY 2007 DoD Discretionary Total Obligational Authority (TOA) Direct Budget Plan by Title, including projections (US$ in Billions)
• IV-2C FY 2008 DoD Discretionary Total Obligational Authority (TOA) Direct Budget Plan by Title, including projections (US$ in Billions)
• IV-3A FY 2006 DoD Discretionary Total Obligational Authority (TOA) Direct Budget Plan by Service, including projections (US$ in Billions)
• IV-3B FY 2007 DoD Discretionary Total Obligational Authority (TOA) Direct Budget Plan by Service, including projections (US$ in Billions)
• IV-3C FY 2008 DoD Discretionary Total Obligational Authority (TOA) Direct Budget Plan by Service, including projections (US$ in Billions)
• IV-4 DoD Discretionary Total Obligational Authority (TOA) Direct Budget Plan by Title, FY 2005, FY 2011 (Percentage of Total Budget)
• IV-5 DoD Discretionary Total Obligational Authority (TOA) Direct Budget Plan by Service, FY 2006, FY 2013 (Percentage of Total Budget)
• IV-6 FY 2006, 2007, 2008 DoD Information Technology/National Security Systems Budget by Department Category (US$ in Billions)
• IV-7 FY 2005, 2006, 2007 US Department of Homeland Security Budget (US$ in Billions)
• IV-8 FY 2008 US Department of Homeland Security Budget by Organization (Percent of Total Budget)
• IV-9 Military Expenditures of Selected Countries and Regions compared to those of the United States, 1996 & 2006 (Percentages of US Expenditures)
• IV-10 Military Expenditure CAGRs for Selected Countries and Regions, 1996-2006 (Calculated with Year 2000 Constant US Dollars)

V NORTH AMERICAN COTS INTEGRATED SYSTEMS MARKET OVER VIEW

• V-1 Combined North American and European Union COTS Merchant Integrated System Shipments and Projections, 2006-2011 (US$ in Millions)
• V-2 Combined North American and European Union COTS Integrated System Shipments and Projections by Product Type, 2006-2008 (US$ in Millions)
• V-3 Regional COTS Merchant Integrated System Markets, North America & European Union, 2006 & 2009 (% of Dollar Volume Shipments)
• V-4 Regional COTS Merchant Integrated System Shipments, Normalized Growth Curves, 2006-2011 (Dollar Volume Shipments Normalized to Year 2006 Levels)
• V-5 Regional COTS Merchant Board Market CAGRs, 2006-2011
• V-6 North American COTS Merchant Integrated Systems Shipments and Projections by Product Type, 2006-2008 (US$ in Millions)
• V-7 North American COTS Merchant Integrated Systems Shipments and Projections by Product Type, 2006 & 2008 (% of Dollar Volume Shipments)
• V-8 North American COTS Merchant Integrated System Shipments by Product Type, 2006-2011 (US$ in Millions)
• V-9 North American COTS Merchant Integrated System Shipments, Normalized Growth Curves by Product Type, 2006-2011 (Dollar Volume Shipments Normalized to Year 2006 Levels)
• V-10 North American COTS Merchant Integrated Systems Shipments, Estimated RoHS Compliance, 2006 & 2009 (% of Dollar Volume Shipments)
• V-11 COTS Merchant Integrated Systems Products, Average Years Offered (% of Vendor Respondents Answering)
• V-12 COTS Merchant Integrated Systems Products, Average EOL Notice in Months (% of Vendor Respondents Answering)
• V-13 COTS Merchant Integrated Systems Products, Support After EOL (Years) (% of Vendor Respondents Answering)
• V-14 North American COTS Integrated Systems Shipments by Distribution Channel, 2006 & 2009 (% of Dollar Volume Shipments)
• V-15 North American COTS Integrated Systems Shipments by Consuming Customer Class, 2006 & 2009 (% of Dollar Volume Shipments)
• V-16 Leading Vendors of COTS Integrated Systems (all types), North American Market, 2006 (Estimated Market Shares)

VI NORTH AMERICAN COTS INTEGRATED PASSIVE BACK PLANE SYSTEMS

• VI-1 North American COTS Passive Backplane Systems Shipments and Projections, 2006-2011 (US$ in Millions)
• VI-2 North American COTS Passive Backplane Systems Shipments and Projections by Primary Bus Architecture, 2006-2008 (US$ in Millions)
• VI-3 North American COTS Passive Backplane Systems Shipments and Projections by Primary Bus Architecture, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-4 North American COTS Passive Backplane Systems Shipments by Prmary Bus Architecture, 2006-2011 (US$ in Millions)
• VI-5 North American COTS Passive Backplane Systems Shipments by Primary Bus Architecture, Normalized Growth Curves, 2006-2011 (Dollar Volume Shipments Normalized to Year 2006 Levels)
• VI-6 North American COTS MicroTCA Systems, Normalized Growth Curve, 2007-2011 (Dollar Volume Shipments Normalized to Year 2006 Levels)
• VI-7 Leading Vendors of COTS Passive Backplane Integrated Systems (all architectures) North American Market, 2006 (Estimated Market Shares)
• VI-8 North American COTS VME Integrated Systems Shipments by End User Service, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-9 North American COTS VME Integrated System Shipments by Electronics Platform Classification, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-10 North American COTS VME Integrated System Shipments by Electronics Mission Classification, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-11 North American COTS VME Integrated System Shipments by VME Architecture, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-12 North American COTS Fabric-Enabled VME Integrated System Shipments by Backplane Switch Fabric, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-13 North American COTS VME Integrated System Shipments by Board Size, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-14 North American COTS VME Integrated System Shipments by Cooling Method, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-15 North American COTS VME Integrated System Shipments by Ruggedization Class, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-16 North American COTS VME Integrated System Shipments, Reliability Enhancements, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-17 North American COTS VME Integrated System Shipments, Power Supply Types, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-18 North American COTS VME Integrated System Shipments, Liquid Cooled Power Supply Use, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-19 North American COTS VME Integrated System Shipments, Primary Processor Use, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-20 North American COTS VME Integrated System Shipments, Multiple Discrete Processor Use, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-21 North American COTS VME Integrated System Shipments, With and Without OS, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-22 North American COTS VME Integrated System Shipments, Estimated Operating System Use, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-23 North American COTS VME Integrated System Shipments, Approximate Allocation of Revenues, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-24 Leading Vendors of COTS VME Integrated Systems (all architectures) North American Market, 2006 (Estimated Market Shares)
• VI-25 North American COTS CompactPCI Integrated Systems Shipments by End User Service, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-26 North American COTS CompactPCI Integrated System Shipments by Electronics Platform Classification, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-27 North American COTS CompactPCI Integrated System Shipments by Electronics Mission Classification, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-28 North American COTS CompactPCI Integrated System Shipments by CompactPCI Architecture, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-29 North American COTS CompactPCI Integrated System Shipments by Board Size, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-30 North American COTS CompactPCI Integrated System Shipments by Cooling Method, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-31 North American COTS CompactPCI Integrated System Shipments by Ruggedization Class, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-32 North American COTS CompactPCI Integrated System Shipments, Reliability Enhancements, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-33 North American COTS CompactPCI Integrated System Shipments, Power Supply Types, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-34 North American COTS CompactPCI Integrated System Shipments, Liquid Cooled Power Supply Use, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-35 North American COTS CompactPCI Integrated System Shipments, Primary Processor Use, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-36 North American COTS CompactPCI Integrated System Shipments, Multiple Discrete Processor Use, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-37 North American COTS CompactPCI Integrated System Shipments, With and Without OS, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-38 North American COTS CompactPCI Integrated System Shipments, Estimated Operating System Use, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-39 North American COTS CompactPCI Integrated System Shipments, Approximate Allocation of Revenues, 2006 & 2009 (% of Dollar Volume Shipments)
• VI-40 Leading Vendors of COTS CompactPCI Integrated Systems (all architectures) North American Market, 2006 (Estimated Market Shares)
• VI-41 Projected North American COTS ATCA & MicroTCA Integrated Systems Shipments by End User Service, 2009 (% of Dollar Volume Shipments)
• VI-42 Projected North American COTS ATCA & MicroTCA Integrated System Shipments by Electronics Mission Classification, 2009 (% of Dollar Volume Shipments)

VII COTS INTEGRATED SYSTEMS USER DATA

• VII-1 System Purchasers' Involvement in COTS Military/Defense Market (Percentage of System Purchaser Respondents Answering)
• VII-2 Number of COTS Projects Begun (Percentage of System Purchaser Respondents Answering)
• VII-3 Average Number of Engineers per Project (Percentage of System Purchaser Respondents Answering)
• VII-4 Customers for Identified COTS Projects, System Purchasers Responding (Percentage of Identified Projects)
• VII-5 Electronics Platform Classifications Utilizing Identified COTS Projects, System Purchasers Responding (Percentage of Identified Projects)
• VII-6 Electronics Mission Classifications Utilizing Identified COTS Projects, System Purchasers Responding (Percentage of Identified Projects)
• VII-7 Role of System Purchasers' Organizations for Identified COTS Projects (Percentage of System Purchaser Respondents Answering)
• VII-8 Design and Manufacture of COTS Integrated Computer Systems (Percentage of Identified Projects)
• VII-9 Number of Separate Computer Platforms (Systems) Included in Identified COTS Projects, System Purchasers Responding (Percentage of System Purchaser Respondents Answering)
• VII-10 Platform Usage Within Identified COTS Projects, Segmented by Primary Bus Architectures/Form Factors (Percentage of Identified Projects)
• VII-11 VME Platform Type Usage in Identified VME COTS Projects (Percentage of Identified VME Projects)
• VII-12 CompactPCI Platform Type Usage in Identified CompactPCI COTS Projects (Percentage of Identified CompactPCI Projects)
• VII-13 Backplane Switch Fabric (point-to-point communication in the box) Usage in Identified COTS Projects (Percentage of Identified Fabric-enabled Projects)
• VII-14 Switch Fabric (point-to-point communication shelf-to-shelf and/or system-tosystem) Usage between Boxes in Identified COTS Projects (Percentage of Identified Fabric-enabled Projects)
• VII-15 Media Used Most Often to Communicate "Between Boxes" (shelf-to-shelf and/or system-to-system) (Percentage of System Purchaser Respondents Answering)
• VII-16 Board Functional Product Type Usage in Identified COTS Projects, System Purchasers Responding (Percentage of Identified Projects)
• VII-17 CPU Usage on Slot Single Board Computers or CPU Blades in Identified COTS Projects, SBC System Purchasers Responding (Percentage of Identified Projects)
• VII-18 CPU Configuration Usage on Slot Single Board Computers or CPU Blades in Identified COTS Projects, SBC System Purchasers Responding (Percentage of Identified Projects)
• VII-19 DSP Processing Configuration Usage on DSP Boards in Identified COTS Projects, DSP System Purchasers Responding (Percentage of Identified Projects)
• VII-20 Ruggedized Board Usage in Identified COTS Projects (Percentage of System Purchaser Respondents Answering)
• VII-21 VITA 47 Compliant Ruggedized Board Usage in Identified COTS Projects (Percentage of Ruggedized System Purchaser Respondents Answering)
• VII-22 Board Cooling Usage in Identified COTS Projects, System Purchasers Responding (Percentage of Identified Projects)
• VII-23 System Cooling Usage, System Purchasers Responding (Percentage of Identified Projects)
• VII-24 System Working Environment
• VII-25 System Environmental Protection, System Purchasers Responding (Percentage of Identified Projects)
• VII-26 System Reliability Enhancements, System Purchasers Responding (Percentage of Identified Projects)
• VII-27 System OS/RTOS Usage, System Purchasers Responding (Percentage of Identified Projects)
• VII-28 System Applications Software Inclusion, System Purchasers Responding (Percentage of Board Purchaser Respondents Answering)
• VII-29 Importance of Software Development Tools to the Completion of Identified COTS Projects, As Rated by System Purchaser Respondents (Average Rating Received by System Purchaser Respondents on a Scale of 1 to 5, where 5 is the Highest Rating)
• VII-30 Purchased System RoHS Compliance Requirement Time Frame (Percentage of System Purchaser Respondents Answering)
• VII-31 Importance of Sources for Learning about Product, Technical, and Information Concerning COTS Integrated Computer Systems (Average Rating Received by System Purchaser Respondents on a Scale of 1 to 5, where 5 is the Highest Rating)

APPENDIX: FY 2006 PRIME CONTRACTOR DATA

• A-1 Index of 100 Parent Companies which Received the Largest Dollar Volume of DoD Prime Contract Awards Department of Defense, Fiscal Year 2006
• A-2 Top 100 Companies Listed According to net Value of DoD Prime Contract Awards and Category of Procurement Department of Defense, Fiscal Year 2006
• A-3 Top 50 Companies Listed According to Net Value of Prime Contract Awards, Reporting Component, and Category of Procurement Department of the Air Force, Fiscal Year 2006
• A-4 Top 50 Companies Listed According to Net Value of Prime Contract Awards, Reporting Component, and Category of Procurement Departmenet of the Army, Fiscal Year 2006
• A-5 Top 50 Companies Listed According to Net Value of Prime Contract Awards, Reporting Component, and Category of Procurement Departmenet of the Navy, Fiscal Year 2006
• A-6 Top 50 Companies Listed According to Net Value of Prime Contract Awards, Reporting Component, and Category of Procurement Defense Logistics Agency, Fiscal Year 2006
• A-7 Top 50 Companies Listed According to Net Value of Prime Contract Awards, Reporting Component, and Category of Procurement Other Defense Agencies, Fiscal Year 2006