1 year ago
BlackBerry Limited (NYSE:BB) Wolfe Research Global Auto, Auto Tech, and Mobility Conference 2023 February 16, 2023 8:55 AM ET
Company Participants
John Wall - Head, QNX, Senior Vice President & Co-Head BlackBerry Technology Solutions, Products, Engineering & Operations
Tim Foote - Head, Investor Relations
Conference Call Participants
[Abrupt Start]
…So galore of america person -- are really car analyst, but we're progressively having to go astatine slightest armchair package analyst. So there's – location are astir 80 to 100 cardinal lines of codification successful a conveyance today. And that's apt to summation to complete 200 cardinal complete nan adjacent fewer years and past turn further from there, driven by areas for illustration ADAS, infotainment, artillery guidance package and overmuch more, and underpinning these applications is nan real-time operating strategy and nan clear leader successful this area has been QNX. They've developed successful nan 1980s, QNX has been deployed to complete 250 cardinal vehicles connected nan road. They activity pinch 45 automakers globally, including each nan starring world OEMs and respective of nan starring Tier 1 suppliers. It's a $200 cardinal business coming increasing astatine astir 20% per twelvemonth for nan adjacent 5 years.
So present to talk QNX and really nan package and conveyance architecture are poised to germinate complete nan adjacent fewer years is John Wall, Head of BlackBerry QNX and Tim Foote, Head of Investor Relations. Thanks truthful much, guys. Thank you.
John Wall
Thank you.
Question-and-Answer Session
Q - Unidentified Analyst
So possibly earlier we get into QNX specifically, I wanted to commencement pinch nan large picture. So arsenic I mentioned, QNX useful pinch each automaker successful nan world, and you've sewage conversations pinch their package teams daily. So broadly, what has been nan biggest symptom constituent for OEMs today? Where do you deliberation they're really struggling arsenic they're trying to go much package defined?
John Wall
Yeah. I deliberation that's a really absorbing question. I think, nan OEMs that we activity with, arsenic you mentioned, we're moving pinch conscionable astir each OEM. They admit nan value of package successful nan vehicle, they cognize nan car is going to go package defined. They cognize that from a monetization position package is going to play a large role.
I deliberation nan struggle for nan OEMs has been really to build a package squad wrong what is mostly a mechanical company. And going retired and hiring a bunch of package developers astatine a assemblage is simply a really difficult measurement of building a package team, you request a batch of structure. You request a batch of experience.
I think, different area that's been very challenging for nan OEMs is astatine what level should they beryllium focusing connected processing package versus what they should buy. And truthful I deliberation that that's been nan struggle. And I think, definite OEMs are coming to nan realization that they're starting to understand a small spot much wherever that statement is, wherever they should beryllium providing worth and software, things that their customers will admit versus possibly getting into nan weeds of package wherever they really don't request to beryllium there.
Unidentified Analyst
Yeah, yeah. And that -- yeah, truthful that possibly leads into QNX. So, conscionable wanted to, obviously, arsenic I mentioned, you guys person been incredibly successful successful this market. Why person truthful galore OEMs chosen to usage your RTOS and Hypervisor solutions?
John Wall
Yeah. As you mentioned, we've been astir for a agelong time. I wasn't location successful nan 1980s. But I've been location since nan mid-90s. And I think, 1 of nan advantages that we person and 1 of nan reasons that we're successful is our pedigree successful automotive did not commencement nether nan hood, connected MCU’s, aliases mini processors, our pedigree successful automotive started successful infotainment. And truthful from 2003 aliases 2004, we were -- we had a ample marketplace stock of nan infotainment sockets wrong nan vehicle.
And truthful that really focused our operating strategy connected precocious performance, moving connected precocious capacity processors, rich | graphics, but we really focused connected that and truthful erstwhile we started to spot a displacement towards nan package defined conveyance and that really started successful nan early 2000s and 2010s, discussions astir autonomous drive, nan request for precocious processing powerfulness wrong nan vehicle, precocious velocity networking. We fundamentally took our merchandise and we said, okay, good we're going to information certify this product. And we're really going to attraction connected what's happening successful nan future. We could spot Android was coming successful infotainment. We knew our days were numbered. So we really started to attraction connected nan remainder of nan vehicle, really focusing connected functional safety, making judge that we had nan correct pedigree for our merchandise to do, nan highest levels of safety, information wrong nan vehicle.
And I deliberation arsenic we shifted into that direction, we had nan correct merchandise astatine nan correct time. And that is nan consolidation of each these small, azygous usability ECUs to these domain controllers connected precocious capacity compute. We had awesome relationships done our infotainment days pinch nan likes of Qualcomm and NVIDIA, which is very important to person nan support for nan processors that are being utilized successful nan vehicle, TI, NXP, and I deliberation we were astatine nan correct spot astatine nan correct time, pinch nan correct product.
Unidentified Analyst
Okay. Makes sense. Yeah. And conscionable a level set, erstwhile we deliberation astir nan layers of software. Theirs is, you've evidently you guys are fundamentally successful that operating system, and past Hypervisor and middleware and past supra that is wherever nan OEMs aliases nan suppliers aliases whoever tin play successful position of application?
John Wall
Absolutely. So we are – I for illustration to – we joke astir this we're nan plumbers.
Unidentified Analyst
Yeah.
John Wall
We're what's down nan walls, what's nether nan floor. You don't really spot what we do. But it has to work, you know, for nan remainder of nan applications to work. We don't person a beardown desire to move up into nan exertion space. We're very overmuch foundational software, Hypervisor operating system. Middleware that helps nan OEMs aliases Tier 1s aliases different Tier 2s successful nan marketplace create their applications.
Unidentified Analyst
Yeah. And past truthful you know, possibly conscionable double clicking connected that. So, respective OS and Hypervisor players, location are a batch of them successful nan market, right. There is Green Hills, Automotive-Grade Linux, number of group present were astatine Aptiv's Investor Day a mates days agone and they talked astir Wind River. So -
John Wall
What would they talk astir Wind River?
Unidentified Analyst
Yeah. They brought it – someway they brought it up. So I guess, I'm trying to deliberation astir what – what differentiates these solutions? So possibly if you could put yourself successful nan successful nan shoes of an OEM erstwhile they're trying to fig out, which 1 to spell pinch which KPIs Do they really attraction about?
John Wall
Absolutely. And I mean, it's a awesome question. It's 1 that comes up rather often. So I would say, erstwhile you're talking astir Green Hills, and Wind River VxWorks, I mean, beardown pedigree and safety. These are operating systems that are utilized person been utilized nether nan hood. They're utilized successful avionics. They person certifications woody 178C, not an area that we play in, but I deliberation arsenic I mentioned earlier, we're focused connected precocious performance. Our operating strategy is geared towards nan next-generation, precocious capacity compute, multi core, 4 cores, 8 cores, 16 cores, very overmuch capacity that's akin to Linux.
I don't judge that Vx and Green Hills person that capacity characteristics connected nan latest processors. So I deliberation that gives america an advantage against them. If you look astatine Linux and AGL and AGL is simply a awesome name, Auto Grade Linux, it makes it sound for illustration it's information certified and but it's not. And, location are initiatives retired location to information certified Linux, BMW was a ample proponent of information certifying Linux, put a batch of clip and energy, successful 2021 Frank Weber, their committee personnel came retired publically said, we've wasted our clip successful nan weeds. We're now going to usage QNX arsenic nan instauration of our – of our products that are – that request information certification. And that's an illustration of an OEM that felt they needed to ain nan package from nan crushed up and I deliberation came to nan realization okay, this is wherever we should bargain and attraction our energies astatine a higher level.
Unidentified Analyst
Yeah. And maybe, possibly talk a small spot astir that, right. So because obviously, I'm judge you saw a fewer years ago, beautiful overmuch each OEM was saying they want to create their ain OS. And I deliberation we've each learned complete clip that that was a very loose usage nan word…
John Wall
My CEO utilized to inquire maine astir it each nan time.
Unidentified Analyst
And it's not really what and now they they're benignant of pivoting a bit. But reasoning astir nan costs benefit, right? Like if I wanted to spell and really do what you guys are doing, nan costs of doing that versus nan costs of simply conscionable utilizing your solution?
John Wall
Yeah. I mean, let's beryllium clear, erstwhile companies talk astir processing their ain OS, they're not talking astir creating a QNX.
Unidentified Analyst
Yeah.
John Wall
What they're really talking astir is creating a overmuch higher level and I deliberation nan cleanable affinity is Android, building much of an ecosystem for nan car. When you deliberation of nan package defined car, what you're really reasoning astir is simply a handset, an ecosystem, iOS ecosystem, Android ecosystem, ecosystem for nan car. So that's really what they're talking about. You person a very analyzable system, many, galore processors ECUs. They're trying to create a furniture supra that that benignant of unifies each nan different parts of nan conveyance and creates API's and interfaces to beryllium capable to talk to nan car essentially. They're really not talking astir penning a QNX operating system. I mean nan magnitude of clip and power that goes into processing an operating strategy and getting it information certified, I mean, it's prohibitive.
Unidentified Analyst
And I mean, arsenic we're benignant of looking up to nan adjacent procreation of architectures, right, there's going to beryllium much consolidation. You've already seen that now. As that happens, efficaciously nan number of domains is not really changing. We're still going to person an infotainment layer. We're still going to person BMS and each these things. But does each of that request to beryllium now done complete utilizing nan aforesaid operating system? Because aliases does -- aliases are we going to beryllium creating benignant of a -- are we not really solving nan problem? We're conscionable solving nan problem of having excessively galore boxes?
John Wall
Yeah. So we are decidedly solving nan problem of having excessively galore boxes successful nan car. And that's nan consolidation. Obviously, I would emotion them to -- I would emotion nan OEM to say, hey, we're going to usage QNX crossed everything. We're not astatine that stage. There's still really if you look astatine what nan request is wrong nan vehicle, it's Android for infotainment, which we grip successful a integer cockpit pinch our hypervisor. We really activity very intimately pinch Google to make judge that nan interfaces to nan hypervisor are defined pinch nan thought being that you tin update nan Android wrong nan conveyance very easily. And you person a mix, you person Linux for things that don't require a information certification for illustration telematics, though moreover telematics pinch e-call now is having starting to person a request for safety. And past you person an RTOS, RTOS for safety. And that's benignant of what nan substance looks for illustration today.
Unidentified Analyst
Yeah. Okay. Interesting. And past yeah, I mean, possibly if you guys possibly tin thief benignant of framework nan gross exemplary of QNX. So I deliberation 60% of nan revenues travel from 1 clip royalties per vehicle, 40% from engineering, and possibly you tin thief unpack that? And past also, are you seeing benignant of a move distant from that royalty to benignant of recurring gross model?
Tim Foote
Yeah. Okay. I'll reply that. So if we return a look astatine complete time, and successful past mates of years has been somewhat turbulent for QNX and for nan car manufacture complete time, typically, erstwhile we get designed into a vehicle, truthful let's say, I don't know, Toyota take QNX in, you person an first 2 to three-year period, earlier nan conveyance starts to beryllium produced. It's being designed aliases nan package has been designed and nan beingness features and stuff.
In that first period, arsenic you rightly say, we get astir 40% of our gross that comes from 2 main sources. The first is what we telephone dev seats, developer seats, which is efficaciously a package developer kit for nan OEMs aliases nan Tier 1s to really create nan package connected QNX, and that's astir 20%. And past we get a further 20% from master services wherever our group will thief pinch things specified arsenic information certification, and nan like.
Then it moves into production. And each clip a conveyance gets shipped, we'll get a 1 clip royalty. And that is benignant of crazy recurring because nan accumulation past will beryllium you know, reasonably changeless for a play of, opportunity 5 years. So that's nan full -- sorry, Tim…
Tim Foote
Well, I'd say, it's important to statement that it's a royalty per lawsuit of nan operating system. So if there's aggregate modules wrong nan vehicle, that's utilizing QNX and they're each individual.
Unidentified Analyst
Yes. Okay.
John Wall
But correct now, Shreyas [ph], we're successful a position wherever accumulation is evidently somewhat subdued. So nan royalties broadside of nan equation is somewhat down. But we're producing double-digit year-over-year gross maturation driven by caller designs. So we've won immoderate very large designs recently, VW, BMW, these are names we've fixed publically location are not a batch much that we can't springiness publicly. But these designs are overmuch bigger than they were before.
So arsenic John was saying, designs 5 years ago, there's astir apt only 1 spot successful nan car pinch capable compute powerfulness to tally a precocious capacity real-time operating strategy for illustration QNX and that was infotainment.
Now, arsenic we've seen this consolidation of compute powerfulness into these higher powered MCUs, we're really seeing overmuch -- galore much sockets arsenic we telephone them, for QNX to operate. And wherever we spot those ingredients travel together, we're winning a very precocious proportionality of those sockets. So designs now could person three, four, 5 instances of QNX, whereas successful nan past, location was only one. So correct now we're winning large designs, which is translating into that early shape revenue, and that's driving nan year-over-year maturation astatine this point.
And nan bully news, that's efficaciously a starring indicator, because these large designs wrong a mates of years, commencement to participate production. And arsenic accumulation starts to normalize arsenic well, that's a perchance different tailwind a mates of years down nan line.
Unidentified Analyst
That's helpful. And possibly truthful if I usage benignant of that example, right, truthful let's say, I'm conscionable making, let's say, VW has 5 domains successful nan car.
John Wall
Yes.
Unidentified Analyst
And 3 of them are utilizing QNX and 2 are utilizing personification else. So for each 1 of those, if -- for nan package developers that are penning nan applications for these domains, they each will person to usage nan 3 that usage QNX will person to usage nan QNX developer kit, nan 2 that are utilizing personification other will person to usage personification other and past location has to beryllium personification that's integrating each that. Is that really it fundamentally works?
John Wall
Yeah, basically, I mean, you're for illustration arsenic an example, you could person an ADAS squad astatine a integer cockpit.
Unidentified Analyst
Yeah.
John Wall
And, you know, they would each -- they would person their package improvement team, and they would have, you know, X magnitude of group moving connected nan QNX portion of it. They would person to bargain dev seats to support that. The integration could either beryllium done by nan OEM aliases it could beryllium done by, you know, bringing successful a Tier 1 aliases it tin beryllium done pinch it pinch partners, but they're responsible for doing nan integration and a batch of nan services that we supply master services is successful helping pinch that integration.
You know, arsenic an OS company, we're benignant of nan lowest, lowest man connected nan totem rod erstwhile there's a problem and it trickles down. When I move around, there's cipher to thief me. You know, I -- we person to lick nan problems and we activity pinch nan spot vendors. So that's a batch of what we do is we thief pinch that integration. We're not nan integrator..
Unidentified Analyst
Yeah.
John Wall
But we thief pinch nan integration.
Unidentified Analyst
And past you know, reasoning astir nan -- arsenic these OEMs, evidently want to enlistee --update these domains frequently. Is location an opportunity to you know, each update to make immoderate benignant of further gross streams?
John Wall
Depending if they're adding caller features aliases if they're adding thing that's a licence for illustration ours either measurement our merchandise is benignant of composed arsenic we person nan operating system, we person nan hypervisor. That's what group cognize america for, but we person a batch of middleware components arsenic well. And we person a batch of information certified middleware components for illustration record systems, crypto, acoustics, communication. So if they're adding caller features that triggers erstwhile 1 of these pieces going into an upgrade past location is an uplift.
Unidentified Analyst
So -- yeah, because I was possibly trying to do nan mathematics conscionable to possibly framework for illustration you know, if I -- if I said like, if I took nan 200 cardinal of gross and said 60% came from royalties, I presume for illustration possibly 50% -- 60% of vehicles were utilizing QNX, possibly travel little than that. But it's for illustration a debased single-digit per car benignant of numbers. So like, again, reasoning astir that versus trying to spell and do it yourself doesn't really make a batch of sense.
Tim Foote
Yeah, well, I respect nan effort aliases nan mathematics that everyone tries to do it and inquire maine astir it. So successful position of marketplace share, if we look astatine nan vehicles that are being produced today, they are astatine different stages successful their lifecycle, right? So you've sewage immoderate coming to nan extremity of their accumulation run. Maybe they've been successful accumulation for 5 years. The creation shape is an further 3 years before, it could beryllium a 8 years -- 10 years aged creation still being produced today, paying america royalties wherever if you deliberation astir a car 10 years ago, there's astir apt only 1 socket that was available, whereas immoderate of nan newer ones are aggregate sockets.
So to effort and opportunity that we've got, you know, 50% -- 60% stock of nan average. As we mentioned, nan conditions weren't correct for aggregate instances of QNX aggregate years ago. So it's benignant of it's a difficult 1 to do. I'd opportunity you're a small spot low, but directionally speaking we don't really springiness this number because it benignant of affects america commercially, if we show you really overmuch connected mean group pay. Directionally is going up and to nan correct and that's to John's point, arsenic location are now aggregate instances of QNX.
John Wall
Yeah, like, let's beryllium clear that nan move to domain controllers is new.
Unidentified Analyst
Yeah.
John Wall
Okay. I mean, location are not a batch of cars retired location coming that person a batch of this bully coagulated domain controllers. There are immoderate location are cars coming shipping wherever location are 4 instances of QNX.
Unidentified Analyst
Yeah.
John Wall
But it's not common. Its..
Unidentified Analyst
And really do you spot that playing out? Because I mean, we're -- we spot a batch of things for illustration cockpit domain controllers coming in. But, you know, I deliberation nan eventual authorities is possibly 2 aliases 3 large cardinal domain controllers, aliases really do you spot that?
John Wall
Yes, I mean, there's domain controllers but past location is nan request for precocious capacity compute. And there's a quality successful my view. I think, correct now erstwhile group started talking astir package defined conveyance and that that is simply a very celebrated word successful nan past year. It's – I don't deliberation it was that popular. When I tried to make a position successful Germany astir package defined cars 4 years ago, they looked astatine maine for illustration I was crazy and I wasn't capable to do it.
The large move correct now is centralized compute. That's, you know, you'll spot Qualcomm and NVIDIA person travel retired pinch chips that really talk astir really they tin bring a batch of different things together isolate. But if you started looking astatine nan architecture of nan car of nan future, you besides commencement to see, what they telephone zonal controllers, which is handling nan mechatronic rim of nan car. These will beryllium precocious capacity compute. They mightiness not beryllium nan highest capacity compute but they will beryllium MP usage that require astatine QNX type operating system.
You're starting to spot things for illustration smart sensors, smart LiDAR, smart radar, smart cameras, wherever a batch of processing is done connected nan edge. Again, moving an operating strategy for illustration QNX, which we person a number of creation wins successful this area and you know, arsenic nan car is collecting much data, much sensors wrong nan vehicle, there's going to beryllium much separator processing of that information earlier it goes to a centralized compute, aliases to an ADAS club. So we judge location is – we're conscionable scratching nan surface, we judge there's still a batch of opportunity
Unidentified Company Representative
I want you to past possibly touch connected IVY, which is your separator to cloud, in-vehicle information platform, you've co developed this pinch Amazon. It sounds for illustration a large opportunity here. I mean, I deliberation you've mentioned before, for illustration an $800 cardinal serviceable marketplace conscionable by 2025, truthful conscionable 3 years from now. And this is simply a reasonably caller product. So possibly talk a small spot astir what nan level tin enable, you know, and nan value of having a partner for illustration AWS, we don't usually deliberation astir them successful nan discourse of automotive well, and possibly nan business exemplary arsenic well.
John Wall
I'll fto Tim talk astir nan business model. I'll talk astir what propelled this collaboration. So you heard maine earlier talk astir nan car companies trying to create an OS for nan vehicle, thing akin to Android and iOS. What we spot aliases what we saw and portion of nan logic that we did this collaboration pinch Amazon is that yes, that's what they're trying to do. But we're successful nan Wild West backmost erstwhile BlackBerry, symbiosis, wherever location was nary communal ecosystem. And nary of nan cars are built nan same, nary of nan cars astatine nan hardware level look nan aforesaid pinch I'm looking astatine a marque for illustration BMW, I'm looking astatine a marque from Mercedes.
So nan thought pinch IVY was really to, okay, nan cars are not common. So let's create a layer, a middleware furniture that will absurd nan differences of nan conveyance and create a communal API. And we'll besides do immoderate separator processing to beryllium capable to supply insights of nan conveyance truthful that we're not conscionable sending up earthy data. We're doing immoderate instrumentality learning, immoderate processing, gaining immoderate insights astatine nan debased level.
The collaboration pinch Amazon was, well, who tin thrust an ecosystem? You know, a large institution for illustration Amazon tin thrust an ecosystem. And truthful nan thought was if you could get capable traction pinch this merchandise crossed different OEMs, you now made it overmuch much charismatic to ecosystem developers, whether it's applications wrong nan conveyance aliases applications successful nan cloud, to travel and beryllium innovative and create immoderate absorbing applications for nan vehicle. That you cognize would thief nan OEM monetize nan information from nan vehicle. That was really nan impetus for it.
Today, I deliberation car companies are doing – a batch of them are doing it themselves. But I deliberation they're missing that large image of if you person much commonality, you'll pull overmuch much of an ecosystem.
Unidentified Company Representative
Yeah.
John Wall
If I'm capable to constitute an exertion that useful pinch Ford, useful pinch GM, useful pinch BMW, and do it erstwhile arsenic an arsenic an app eco developer aliases an app developer successful an ecosystem, that's overmuch much attractive.
Unidentified Analyst
I see. So yes, truthful nan use is, from an OEMs position is that if this tin beryllium benignant of broadened out, right, not conscionable GM having 1 solution and Ford…
John Wall
So nan thought is this gains momentum arsenic it goes crossed carmakers.
Unidentified Company Representative
Yeah. So it's for illustration a web effect that you conscionable extremity up pinch a overmuch broader scope of apps and services that you tin -- and conscionable return distant nan dense lifting from nan OEM of having to woody pinch nan rumor of gathering information successful nan car and get it into a usable form. Effectively, for illustration we were saying earlier, attraction connected nan differential experiential type things, hide astir nan plumbing springiness that…
John Wall
Yes, this is plumbing. This is plumbing. And really does it activity successful position of nan business model? For example, if I'm an automaker and I'm already utilizing AWS, does this conscionable benignant of for illustration an adhd connected to that aliases do I request to -- it's a benignant of a separate. So earlier you get into that, it's very important to note, it's unreality agnostic and it's OS agnostic. It's not tied to QNX.
Unidentified Company Representative
Yeah. So you tin plug this into immoderate unreality you want, because evidently OEMs person a large aversion to vendor fastener successful and we want them to beryllium capable to usage this pinch immoderate of immoderate supplier of their choice.
In position of nan business model, efficaciously what we're supplying is nan level to alteration this. The information belongs to nan OEM. We person nary liking successful controlling nan data. They ain it. They tin take what they do pinch it. But they would salary america for utilizing it and nan quality betwixt IV and QNX is that QNX is simply a one-time royalty astatine nan constituent nan conveyance was shipped. For IV, you would proceed to usage IV for nan life of nan vehicle.
So now we're into a recurring gross stream. And correct now because nan merchandise is new, we don't want to limit our marketplace opportunity by being excessively prescriptive pinch nan model. But it has to beryllium recurring. We're saying you tin either do a salary by usage, model, aliases if you for illustration and you're going to beryllium a precocious personification aliases you conscionable want much security, you conscionable salary a level fee. But you salary it each year. And that's really we -- and that could beryllium really transformational for us, because intelligibly it's -- we emotion nan QNX model, but arsenic soon arsenic you move into that recurring model, and it started -- that's a imaginable for a lucky stick.
John Wall
Yeah. And this is not conscionable for OEMs, because I deliberation you person an statement pinch Bosch.
Unidentified Company Representative
Absolutely. I mean, this is if a Tier 1 wants to merge this into their level and adhd worth to their platform, absolutely.
John Wall
We deliberation we person a fewer much minutes here.
Unidentified Company Representative
Yes.
Unidentified Analyst
[indiscernible] why wouldn't that beryllium a amended world?
John Wall
I deliberation it would beryllium a amended world for sure. I deliberation if -- from a improvement position and having everybody doing nan aforesaid point and being capable to stock crossed I think, would decidedly beryllium amended world. You know, will we extremity up pinch that astatine immoderate constituent successful nan early maybe? I don't deliberation it's going to beryllium Android, because Android is not a information certified operating system. It's very overmuch intent built for nan handset and infotainment type functions.
But I mean, complete time, you could spot a homogeneous level that is OneOS.
Unidentified Analyst
I mean, I can't thief but deliberation that Android, Google, Alphabet will do immoderate it takes to get there.
John Wall
Yes. I'm not debating whether they could do it if they wanted to do it. I'm saying it wouldn't beryllium Android. They create thing else.
Unidentified Analyst
Thanks. Help maine understand what nan process for information certification arsenic you support putting that retired location arsenic this barrier, really agelong does it return for them to get complete that? And springiness america a batch much accusation there. Thank you.
John Wall
Yes. So, information certification is portion of nan improvement process. It's really you create your product. It's really you create your creation docs. It's really you do consequence and hazard analysis. It's really you do codification coverage. It's really you do testing of nan product. so, location is simply a batch of activity that needs to beryllium done upfront earlier you really commencement typing connected nan machine your code.
So, it's -- it tin return immoderate -- connected a caller merchandise for us, it tin return anyplace -- it tin adhd a twelvemonth and a half to nan improvement process that we already person successful place. The existent concealed pinch information erstwhile you execute functional information is that you person to beryllium capable to analyse immoderate changes you make to nan merchandise going forward.
So, if you person a bug, you person to beryllium capable to look astatine that constituent and opportunity is that a information impacting bug? And that intends doing an study of precisely what nan hole is for that bug? How that bug will beryllium addressed? And whether it introduces a problem pinch your information case?
So, you person to beryllium very friendly pinch nan components that you're analyzing, which intends since QNX, develops our operating system, nan developers are each astatine QNX whether it's record systems, nan kernel, process manager, different parts of our product, we are capable to do that effect analysis.
We're besides capable to beryllium very targeted erstwhile we make fixes, that we're only fixing a peculiar problem and we're not fixing aliases adding different pieces to it that mightiness effect nan information certification of nan product. So, 1 of nan challenges pinch unfastened root package is you person little power complete what's getting put into nan product.
So, for instance, if I'm utilizing Linux, and I person a very, very circumstantial bug, I whitethorn person to drawback a spot that incorporates 40, 50, 60, 100 different fixes that I don't want. And truthful it's very difficult to negociate that. And pinch Linux, you person very accelerated development, and you don't person nan postulation of each those artifacts to beryllium capable to do nan information certification. I mean, it's a analyzable process.
Unidentified Analyst
I would return 1 much here.
Unidentified Analyst
Thanks. Just want to spell backmost to nan Wind River comparison for a small bit, are you guys mostly aft nan aforesaid sockets arsenic you specify them successful position of nan -- for illustration really you specify that that opportunity?
And past conscionable going backmost to what you said you benignant of said, you spot an advantage successful in compute -- capacity compute for your merchandise versus them. We heard earlier this week that that nan guidance squad thinks very highly of their ain merchandise and says for illustration they deliberation they're years up of everyone else. I'm conscionable trying to understand like, what is nan lawsuit they're making there? And why -- is this a threat to you guys complete nan coming years?
John Wall
Yes, truthful I deliberation we return each title earnestly and we don't discount them, but I'm going to beryllium honorable pinch you erstwhile we're successful competing for awards, we don't spot them overmuch and we don't suffer to them. We cognize -- I'm going by nan feed, I don't person VxWorks connected my table astatine home. I mean, they don't springiness it to me. But we're going by nan feedback that we're getting from our customers, why they're picking QNX. And you know, we person a caller merchandise coming retired astatine nan extremity of this year, a caller type of our operating strategy that we judge will beryllium nan fastest operating strategy connected nan planet, arsenic acold arsenic scaling pinch nan adjacent procreation processors unreality compute and nan highest level of determinism and that you know, that's really what defines successful our toss. People will often ask, what's a existent clip operating system? A existent clip operating strategy is being very deterministic and really you respond to events. You respond nan aforesaid measurement each time, and evidently fast, not slow, but there's nary variability. If I say, I tin respond to thing wrong a millisecond aliases wrong a microsecond, I tin do it consistently nary matter what's happening connected nan system. But they judge they’re years up of us. I've talked to group adaptive, they judge wherever they’re years behind.
Tim Foote
And if we conscionable look astatine nan comparative footprints successful auto, I mean, we're successful complete to 115 cardinal vehicles and I judge 30 cardinal for active. So, conscionable successful position of that attraction and nan level of relationship pinch nan OEMs and knowing what their needs are, we're benignant of very tuned successful to what they are.
John Wall
And let's beryllium clear, we still activity pinch Aptiv, not to sojourn Tier 1. We person designed wins pinch Aptiv. So, I conjecture we're frenemies.
Tim Foote
All right. I think, we're going to person to wrap it up there. But acknowledgment truthful much, guys.
John Wall
Thank you.
Tim Foote
Appreciate it.
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