Royalty Free RTOSs mean “Money Up Front”
In the embedded systems market Royalty Free RTOSs are the rage today. I recently had a chance to evaluate several RTOSs and this is what I found.
A Royalty Free RTOS does not necessarily mean cheap. Generally what it means is that for a large up front fee you can use the RTOS on a "Royalty Free" basis afterwards. This pricing model may work well for some high volume products like cell phones and PDAs, but for low volume products it can be much more expensive.
Also, royalties are usually preferrable to high entry costs for products that have a real chance of failure. The traditional "Shared Success" model has definite appeal for these endeavors. If a project fails and few units are ever sold, then the costs for the RTOS and associated development tools are also low.
Obviously the RTOS companies need to get paid somehow whether it is through royalties or otherwise. However, I think that their general depiction of "Royalty Free" as being a low cost model is quite misleading in many cases. In fact I think it is time for some of these "Royalty Free" companies to start offering some plain old royalty based pricing for the many low volume products out there!
Also, it would be great if some tool vendors began to offer "Royalty Only" RTOSs with no up front costs. I believe that this would encourage more companies to undertake risky new product developments.
A Royalty Free RTOS does not necessarily mean cheap. Generally what it means is that for a large up front fee you can use the RTOS on a "Royalty Free" basis afterwards. This pricing model may work well for some high volume products like cell phones and PDAs, but for low volume products it can be much more expensive.
Also, royalties are usually preferrable to high entry costs for products that have a real chance of failure. The traditional "Shared Success" model has definite appeal for these endeavors. If a project fails and few units are ever sold, then the costs for the RTOS and associated development tools are also low.
Obviously the RTOS companies need to get paid somehow whether it is through royalties or otherwise. However, I think that their general depiction of "Royalty Free" as being a low cost model is quite misleading in many cases. In fact I think it is time for some of these "Royalty Free" companies to start offering some plain old royalty based pricing for the many low volume products out there!
Also, it would be great if some tool vendors began to offer "Royalty Only" RTOSs with no up front costs. I believe that this would encourage more companies to undertake risky new product developments.
