AMD on a Design Win Roll: GE and Samsung, Recent Examples

AMD is announcing several design wins per week as second-gen APUs show promise.

Note: AMD is a sponsor of this blog.

I follow many companies on Twitter, but lately it’s AMD that’s tweeting the loudest with weekly design wins. The company’s APUs—accelerated processing units—seem to be gaining traction in systems where PC functionality with game-like  graphics is critical. Core to both of these—pun intended!—is the x86 ISA with its PC compatibility and rich software ecosystem.

Here’s a look at two of AMD’s recent design wins, one for an R-Series and the other for the all-in-one G-Series APU.

Samsung’s “set-back box” adds high-res graphics and PC functions to their digital signage displays. (Courtesy: Samsung.)

Samsung’s “set-back box” adds high-res graphics and PC functions to their digital signage displays. (Courtesy: Samsung.)

Samsung Digital Signs on to AMD

In April Samsung and AMD announced that AMD’s second-gen embedded R-Series APU, previously codenamed “Bald Eagle” is powering Samsung’s latest set-back box (SBB) digital media players. I had no idea what a set-back box is until I looked it up.

Turns out it’s a slim embedded “pizza box” computer 310mm x 219mm x 32mm (12.2in x 8.6in x 1.3in) that’s inserted into the back (“set-back”) of a Samsung Large Format Display (LFD). These industrial-grade LFDs range in size from 32in to 82in and are used in digital signage applications.

Samsung LFDs (large format displays) use AMD R-Series APUs for flexible display features, like sending content to multiple displays via a network. (Courtesy: Samsung.)

Samsung LFDs (large format displays) use AMD R-Series APUs for flexible display features, like sending content to multiple displays via a network. (Courtesy: Samsung.)

What makes them so compelling is the reason they chose AMD’s R-Series APU. The SBB is a complete networked PC, alleviating the need for a separate box; they’re remotely controlled by Samsung’s MagicInfo software that allows up to 192 displays to be linked with same- or stitched-display information.

That is, one can build a video wall where the image is split across the displays—relying on AMD’s EyeFinity graphics feature—or content can be streamed across networked displays depending upon the retailer’s desired effect. Key to Samsung’s selling differentiation is remote management, RS232 control, and network-based self-diagnostics and active alert notification of problems.

Samsung is using the RX-425BB APU with integrated AMD Radeon R6 GPU. Per the datasheet, this version has a 35W TDP, 4 x86 cores and 6 GPU cores @ 654 MHz, is based on AMD’s latest “Steamroller” 64-bit CPU and Embedded Radeon E8860 discrete GPU. Each R-Series APU can drive four 3D, 4K, or HD displays (up to 4096 x 2160 pixels) while running DirectX 11.1, OpenGL 2.4 and AMD’s Mantle gaming SDK.

As neat as all of this is—it’s a super high-end embedded LAN-party “gaming” PC system, afterall—it’s the support for the latest HSA Foundation specs that makes the R-Series (and companion G-Series SOC) equally compelling for deeply embedded applications.  HSA allows mixed CPU and GPU computation which is especially useful in industrial control with its combination of general purpose, machine control, and display requirements.

GE Chooses AMD SOC for SFF

The second design win for AMD was back in February and it wasn’t broadcast widely: I stumbled across it while working on a sponsored piece for GE Intelligent Platforms (Disclosure: GE-IP is a sponsor of this blog.)

The AMD G-Series is now a monolithic, single-chip SOC that combines x86 CPU and Radeon graphics. (Courtesy: GE; YouTube.)

The AMD G-Series is now a monolithic, single-chip SOC that combines x86 CPU and Radeon graphics. (Courtesy: GE; YouTube.)

Used in a rugged, COM Express industrial controller, the AMD G-Series SOC met GE’s needs for low power and all-in-one processing, said Tommy Swigart, Global Product Manager at GE Intelligent Platforms. The “Jaguar” core in the SOC can sip as little as 5W TDP, yet still offers 3x PCIe, 2x GigE, 4x serial, plus HD audio and video, 10 USB (including 2x USB 3.0) and 2 SATA interfaces. What a Swiss Army knife of capability it is.

GE chose AMD’s G-Series APU for a rugged COM Express module for use in GE’s Industrial Internet. (Courtesy: GE Intelligent Platforms, YouTube.)

GE chose AMD’s G-Series APU for a rugged COM Express module for use in GE’s Industrial Internet. (Courtesy: GE Intelligent Platforms, YouTube.)

GE’s going all-in with the GE Industrial Internet, the company’s version of the IoT. Since the company is so diversified, GE can wring cost efficiencies for its customers by predicting aircraft maintenance, reducing energy in office HVAC installations, and interconnecting telemetry from locomotives to reduce track traffic and downtime. AMD’s G-Series APU brings computation, graphics, and bundles of I/O in a single-chip SOC—ideal for use in GE’s rugged SFF.

GE’s Industrial Internet runs on AMD’s G-Series APU. (Courtesy: GE; YouTube.)

GE’s Industrial Internet runs on AMD’s G-Series APU. (Courtesy: GE; YouTube.)

 

IHS Embedded Ranks VME/VPX Suppliers

With vendor-supplied data, analyst firm IHS ranks the largest embedded suppliers in the VME/VPX market.

[Update 22 Jan 14: Replaced figure with the original slide from IHS; added a link to the entire IHS presentation here.  C. Ciufo ]

At today’s Embedded Tech Trends insider conference in Phoenix, IHS senior analyst Toby Colquhoun revealed the top suppliers in the VME and VPX market space for the year ended 2012 (the latest data available). The conference is sponsored by the standards organization VITA that’s responsible for these open standards.  It’s always a challenge to get quantitative data on this niche market which primarily services the world’s rugged military and aerospace markets with harsh environment modules, connectors and systems.

GE Intelligent Platforms is the largest supplier when VME, VPX and systems are combined, followed by: Curtiss-Wright Controls Defense Systems, Mercury Computer, Kontron, and Emerson Network Power (Figure 1, with apologies for the quality).

IHS ranking of VME and VPX suppliers for 2013, as presented at Embedded Tech Trends conference. (Courtesy: IHS, VITA, ETT.)

IHS ranking of VME and VPX suppliers for 2013, as presented at Embedded Tech Trends conference. (Courtesy: IHS, VITA, ETT.)

Toby also indicated that the VME market is shrinking, as legacy designs migrate to VPX modules and systems. In the VPX-only market for modules and systems, the ranking changes to:

1. Curtiss-Wright at 38 percent

2. GE Intelligent Platforms at 19 percent

3. Mercury Computer at 16 percent.

This ranking is consistent with my own expectations (and CW’s recent press releases proclaiming themselves as number one). Interestingly, when I asked the question about small form factor systems like those from these same suppliers, plus ADLINK, Advantech, MEN Mikro and others, Toby responded that IHS doesn’t see that these kinds of rugged systems are encroaching on the VME/VPX market. I disagree, but can’t quantify that just yet.

We’ll update this data once we receive the actual presentation later today.

 

End of an embedded era: Emerson De-”Mots” Motorola Embedded

As Emerson Network Power gets sold off to Platinum Equity, Motorola Computer Group, Force Computer, Artesyn, and more names may disappear into the history books soon.

8/7/13 UPDATE: Several people have commented that the napkin analysis below neglects to account for the “power” side of Emerson Network Power. ENP was also partly assembled via acquisition including: Astec, Liebert, and others. A comment also was sent to me saying “The embedded power unit has been on the market for a buyer for quite some time…”  Finally, there are some questions raised about the size of the open standard ATCA/xTCA markets, with one person agreeing with my statement that the telcos are successfully using the standards to build their own hardware. This would reduce the TAM for non-captive vendors like Emerson Network Power. Thank you to all who corresponded with me privately.  C2

 

Emerson today announced plans to sell 51 percent of Emerson Network Power to Platinum Equity for $300 million. It’s a shame, for sure. But what’s equally interesting are the embedded technologies and their creators leaving the Emerson camp, and how we got to this place.

Embedded Consolidation by Acquisition

Emerson Network Power became the $1.4 billion business it is today partly by acquiring Motorola Embedded Communications Computing in 2007 for $350 million, when ECC’s turnover was about $520 million (2006). The sale closed in 2008.

Perhaps a bargain for Emerson at the time, in the interest of buying “embedded computing products and services to equipment manufacturers in telecommunications, medical imaging, defense and aerospace and industrial automation,” wrote the St. Louis Business Journal at the time. Motorola’s $520 million in sales was added to Artesyn’s $100 million embedded computing business, acquired by Emerson Network Power the year prior, adding up to over $600 million in revenue 2007.

Just three years prior, Motorola was then called “Motorola Computer Group” (MCG) and had acquired the then-heavyweight Force Computers from board-stuffer Solectron. The terms of the agreement were not immediately disclosed, but I was able to ferret the price of $121 million from a footnote on page 47 of Moto’s 2004 10K here. Interestingly, it was slightly prior to this when Motorola spun off their semiconductor operations to Freescale Semiconductor, a separate financial entity at the time. The combined MCG and Force division became known as Motorola Embedded Communications Computing and was all about standards-based telecom and military products like VME, AdvancedTCA, and so on. But mostly about the telcom-focused AdvancedTCA (ATCA).

If you’re following the math, the cumulative total of acquisitions for these embedded technologies was about $721 million to this point. As I recall, Force didn’t belong to Solectron for very long; less than two years, I think. MCG + Force = Moto ECC added up to about 1,500 employees in August 2004, said the press release at the time. The division’s corporate vice president, Wendy Vittori (previously of Dell Computer if memory serves), said at the time: “We will be able to provide solutions for a wider range of customer application needs, supported by a broader portfolio of boards, systems, and services.”

Moto was number one in VME, although they’d ceded the rugged mil/aero market to the likes of Dy4 Systems (later Curtiss-Wright), Radstone, and SBS (both later part of GE Intelligent Platforms) in the late 1990s. Motorola lead the non-mil market with Motorola’s/Freescale’s own PowerPC-based single board computers, whereas Force had leadership in Intel-based SBCs and broader networking products. Wendy was right: it was a pretty decent technology fit, and Motorola was at that time already parlaying their embedded products into the data center and telecom. A year prior, in 2003, Motorola acquired NetPlane Systems, a telecom provider with data and control plane products…and captive customers.

When the Emerson/Motorola deal closed in 2008, an Emerson press release quoted several analysts praising the acquisition. It also said “A significant trend in the embedded computing industry is the adoption of industry standards, including ATCA, MicroTCA and AdvancedMC (AMC/xTCA)…currently more than 40 percent of network equipment providers are shipping ATCA-based systems.”

Present Tense

So far so good. In fact, I’ve followed the industry closely and agree that wired and wireless infrastructure build-outs continue to favor these embedded open standards-based products, and ATCA et al have replaced proprietary telecom equipment. Emerson Network Power’s VME business, I suspect, never recovered since the market for VME (and now the VXS and VPX variants) is almost entirely in defense. (Recall that Motorola walked away from that business ten years ago.) That leaves ATCA, xTCA targeting the telecom markets.

As recently as two months ago (May 2013), the head of the PICMG standards group responsible for ATCA, xTCA and AMC told me how well the telecom markets were growing. You can read my interview with Joe Pavlat here, where Joe estimated the market for ATCA at somewhere between $1.5 billion and 2.5 billion per year.

What happened?

In February 2013 Emerson’s CEO David Farr went on record with Fortune magazine as saying he wants to “double down in businesses that help manufacturers produce their wares” and to focus on cooling products (like air conditioners and chillers for data centers).

This might explain why Emerson would opt to leave this business along with Emerson’s pre-Motorola power business. The press release issued today cites the group’s revenue at $1.4 billion in 2012, probably less than the cumulative total of the price in real dollars of all those acquisitions if you linearize them from 2008. In fact, the group should probably be selling over $2 billion to achieve the correct ROI on all of those acquisitions, but that bumps up against the ATCA TAM cited above by Joe Pavlat of PIGMG. Did Emerson run out of ATCA runway?

That possibly explains the $300 million purchase price for 51 percent, making the overall sale roughly 50 cents on the dollar of last year’s gross sales. That also puts years’ worth of leading-edge VME, control plane, data plane, networking IP, ATCA, xTCA and other embedded technology up for sale by Platinum Equity. Or maybe not.

Sell it, or Keep it?

Who might want this technology? If you assume that no Emerson Network Power customers will be lost in the process (CapEx equipment is not quickly designed out), Emerson’s competitors like Radisys, Kontron, IBM, Dell, and HP already have their own (open-standard) hardware. My bet is that the key value will be any proprietary IP owned by Emerson plus customer relationships (read: backlog). Yet I can not think of a single open-market company that would want to buy this technology that doesn’t already have the core technology. So why buy it?

But Platinum may own a core company that needs Emerson’s technology for themselves: perhaps a telco or wireless provider who wants to produce their own ATCA equipment and not buy it on the open market. This certainly is a viable strategy for a mere $300 million (to start) to buy a multi-billion dollar telecommunications outfit. When asked to comment on this story, PICMG’s Joe Pavlat said: “Platinum Equity is extremely well regarded and has several other significant telecom investments that, at first glance, appear to be very complementary to the Emerson offerings.” Bingo.

So it may be the end of an era–when companies like Motorola, Force, Artesyn, NetPlane–created and implemented open standards-based embedded computers for the telecommunications industry. Hopefully these names and their creations will live on at another recognizable open standards company. But I’m not hopeful; I suspect they’re gone forever and de-Mot’ed  to the history books.