Making Lemonade - OEMs & Economic Turnaround in 2009

Posted by: Thom Denholm

OEMs Position Themselves for the Economic Turnaround 

As everyone's mother used to say, "When life hands you lemons..." and at this particular time in embedded technology and elsewhere, it seems there is no shortage of lemons. In just the last three weeks, we've heard about Nortel filing for bankruptcy, Motorola planning to cut 7,000 jobs, and Sony Ericsson's dramatic profitability swing from $1.48 billion in 2007 to negative $96 million in 2008. And yet, one thing we know about recessions is that they inevitably end in expansion. The only question is when. With the fresh winds of optimism blowing in from Washington this week, now is as good a time as any to start planning your strategy for survival followed by world domination. Indeed, if there is a silver lining to our current situation, it has to be the unprecedented opportunities for well-positioned, forward thinking companies to dominate their markets. Clearly, this takes grit, an eye on keeping costs down, and a truly differentiated product strategy. It's more important now than ever before for OEMs to focus on their core competencies, keep bill of materials costs low and work with vendors who have experience weathering economic storms and possess the fortitude to survive tough times. Datalight was born in 1983 during one of the worst recessions in the post-war era, and we remember well the challenges of the early 90's and the aftermath of 9/11/01. While many of our competitors are pulling resources from flash file system development, we are moving ahead with a full schedule of product releases and innovation for 2009. While at CES this year, we discovered one of our competitors is pulling out of the flash file system business altogether. I won't bore you with a long-winded sales pitch, because chances are if you're reading this newsletter you already know Datalight can help you build better products with lower development costs and give you the ability to choose between the least expensive of over 300 NAND and NOR flash parts. Like our new president, we are cautiously optimistic about the coming year. As President Obama said so well, this economy is going to take hard work and a little time to turn around. One thing we know for sure though, is that the turnaround is coming. Companies that design products their customers need and want, continue to invest in technology and communication, and prepare themselves to capitalize on a business environment with fewer competitors will do extremely well in the coming years.

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