Article: Embedded software
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Embedded software
Contents |
Embedded software is built into some other product or service as an integral
part of its functioning.
Usually it is bundled with its enclosing product or service, and is neither separately visible to
the customer or users, nor is it sold and upgrade separately.
Relevance to software business
Embedded software makes up a substantial portion of the software supply industry, as there are a great diversity of products and services that depend on embedded software. (In fact, it can be argued that products and services that don't use software embedding are increasingly rare.)
In terms of its business challenges and opportunities, embedded software is quite distinctive. Embedded software will typically be managed by a separate business unit within a larger firm, and will usually be considered as a cost center rather than profit center. It is fairly common for embedded software to grow in terms of its contribution to value, with the result that the larger firm looks more and more like a "pure" software company over time. Managing this transition is a key challenge, and many firms have been known to struggle.