let's build platforms, and not potholes!

Let’s build platforms,and not potholes!

Vrajesh Bhavsar

Linaro LITE Kick-off – Jan 2016

IoT Strategy

© ARM 2015 4

Anything that could be connected, will be…

Farming

Environmental

Energy Grid

Home Automation

Identity &Tracking

Logistics &Shipping Building

Management ConnectedCar

Social &Local

Healthcare

© ARM 2015 5

ARM is increasingly diversified

69% mobile devices

7%home

ARM-based chip shipments - 2004

5%embedded

19%enterprise

40% mobile devices

ARM licenses signed - 2004

30% embeddedcomputers

10% home

20% enterprise

applications

© ARM 2015 6

40% mobile devices



10% home

20% enterprise

applications



30% mobile devices

10%home

20%enterprise

ARM is increasingly diversified

45% mobile devices


5%home

ARM-based chip shipments - 2014

16%enterprise

© ARM 2015 7

2010 2015

4xsegments

5xmembers

10xengineers

Software collaboration across ecosystem

© ARM 2015 8

Linaro embraces new segments

§ Linaro Enterprise Group (LEG)§ Engineering the core server technologies not available on ARM systems yet§ Optimising the overall performance for the required software workloads

§ Linaro Networking Group (LNG)§ OpenDataPlane: Full multicore, Expanding API for networking platforms§ LNG Kernels (RT & NonRT)

§ Linaro Home Group (LHG)§ Working collaboratively on Linux software platforms delivering media via optimized and

secure video frameworks

§ Linaro Mobile Group (LMG)§ Collaborate with members to consolidate and optimize open source software, enabling

industry leading ARM based Mobile products

© ARM 2015 9

1.1bnOther

Source: Gartner, 2015

0.6bnIndustrial

1.8bnSmart City

1.6bnSmartHome

Preparing for the explosive growth of IoT

60%CAGR

40%CAGR

20%CAGR

50%CAGR

Expected number of IoT devices shipped in 2020

New ecosystems. New business models. New opportunities for ARM.

© ARM 2015 10

Broad Market Penetration

smartphone

>95%market share

tablet

>85%market share

>25%market share

microcontrollers

>60%market share

wirelessconnectivity

consumerelectronics

wearables

>90%market share

storage

>90%market share

>95%market share

>55%market share

automotiveinfotainment

© ARM 2015 11

Software is eating the world

Marc Andreessen, a16z

© ARM 2015 12

Technology Shift

§ Ongoing shift towards mobile + cloud§ Addressing connectivity, security, privacy, data explosion & much more…§ Add IoT + Embedded to that!

§ Impacts strategy, time to market & business models§ Business models have gravitated towards platform stickiness &

maintaining user engagement§ Teams tend to be lean, focus on developing only their value prop

§ Leverage the open source community as much as possible§ Rely a lot on partners & ecosystem/service providers to pick up the load

© ARM 2015 13

Current Software Landscape

§ Software is increasingly becoming free for basic use§ Free/open platforms are winning market share§ Cloud & mobile developers are looking for same ease of use on every

platform§ For these developers, it is very important to have the ability to see

under the hood & make sure things are how they need§ Accustomed to staying “vendor free”, but look to getting help/services

as needed

© ARM 2015 14

Open Source trends – key facts from 2015

§ 78% of companies run major operations on open source§ Only 3% don’t use OSS at all

§ Open source usage is 2x compared to 2010§ >66% consider OSS options before proprietary§ Great recruiting tool for >50% companies§ >$1B invested by VCs in open source startups§ Open source services businesses continue to grow§ Improved margins, competitive edge, TTM

§ Google, Apple, Nvidia, Qualcomm, etc. – you name it!

© ARM 2015 15

IoT will not be built by embedded developers

VC investment and expected investment, Pitchbook.com and ARM estimates, 2015

8mweb

9mmobile

600k

embedded

$1.5bn

IoT startupinvestment in 2015

© ARM 2015 16

Imagine a world where…

§ From the wide choice of ARM-based devices, you chose the perfect one for you§ Price, performance, power, form, quality, etc.

§ And what software you ran on it was up to you…§ Android, BSD, CentOS, ChromeOS, RHEL, SUSE, Tizen, Symbian, Ubuntu, Windows,

Yocto/OE, etc …or something we haven’t even thought of yet

§ But once you made that choice, it should all just work!

§ For you, your developers, 3rd party developers & eventually - Enhanced experiences for the end consumers

© ARM 2015 19

Building great platforms…

§ (Hardware + software) platforms are the drivers of success§ Open source & standards are building blocks to get there§ We believe greatly in Linaro and continue to fully support it

§ Let’s work on short term outputs & long term vision for the LITE group

§ Significant benefits to the ARM Partnership