Five Trends to Watch in 2012

FIve Trends to Watch in 20122012 will mark a further acceleration in the use of Flash Memory as a critical computing component. Beyond the tablets, smartphones and enterprise SSDs, NAND and NOR Flash memory are growing and making an impact throughout all our lives at work, on the road, at home and at play. Here are five trends we expect to accelerate this year:

Widespread Usage of Connected Embedded Devices

2011 provided the tipping point in the use of connected embedded devices. Tablets and smartphones have conditioned the consumer to expect instant-on, ready-access to their valuable data, including the Internet, email, social media and digital entertainment. An embedded device that is not connected to the Internet now feels as awkward as using a portable CD player.

The mobile consumer is driving the connectedness, but in 2012 we will see more of the “Internet of Everything,” where embedded systems interact automatically with other embedded systems. Wireless Sensor Networks gathering and transmitting valuable information, microelectromechanical systems (MEMS) creating interactions between electronics and the real world, and near field communication (NFC) enabling convenient short-range communication between electronic devices will increase the value of connected embedded devices and drive their requirements for non-volatile storage.

Increasingly Advanced Embedded Applications

This additional usage of connected devices will drive increasingly advanced embedded applications. Smart meter adoption combined with home automation will create enhanced requirements for flexible communication and stronger security techniques in those smart meter and home automation systems.

In the automotive marketplace, we are seeing even more control electronics for electric/hybrid powertrains (including battery management), powertrain applications (including engine, transmission, and emissions control), active safety systems, and driver assist systems (including blind-spot & lane-departure warning and parking assist).

As everyone struggles with providing better levels of healthcare with fewer resources, innovation in healthcare delivery approaches will continue to grow.  A December 2011 report on the UK Whole System Demonstrator Programme showed “that if used correctly telehealth can deliver a 15% reduction in A&E visits, a 20% reduction in emergency admissions, a 14% reduction in elective admissions, a 14% reduction in bed days and an 8% reduction in tariff costs. More strikingly they also demonstrate a 45% reduction in mortality rates.” With results like this, an increase in funding of telehealth solutions is almost a certainty.

These are just a couple of examples of the growing sophistication of embedded applications.  All of them create more complex software needing advances in current Flash technology.

Greater User Interface Interactivity

Users are also increasingly becoming discontent with interacting with embedded devices through only simple commands and pushing buttons; they want to interact using speech recognition and natural language processing.  The introduction of Siri by Apple in 2011 has highlighted the latency demand for this functionality.

Providing greater user interface interactivity leads to increased complexity for the embedded system and greater memory requirements.

Pressing a button is easy to understand.  When the button is pressed, the program responds. However, speech recognition brings a new level of variability to the inputs into the system, requiring more sophistication to interpret and respond correctly. The opportunity for innovation in this market will be big.

Increased Interest in Underlying Technologies of Non-Volatile Memory

Over the past 10 years, we have seen rapid growth in both NOR and NAND flash memory.  However, we are seeing some difficult technology issues to scale smaller than 32nm nodes.  Floating gate devices that store their charges in a floating gate isolated by insulators are having issues with smaller node sizes.  As the oxide surrounding the charge gets smaller and smaller, it is prone to leakage due to defects in the tunnel oxide.

Also, floating gate devices need a control gate to control the channel for the floating gate.   Accommodating the necessary performance characteristics of the control gate vis a vis the floating gate limits the scaling of floating gate for both NOR and NAND applications.  The techniques used to program the NOR and NAND flash also limit the ability to scale to more advanced nodes.

Since NAND applications have less programming requirements, i.e. page mode versus random operations, they can scale further than NOR devices.  However, both are being capped by the limitations of floating gate technologies.  We will see significant discussion about charge-trapped solutions as well as yet-to-be proven technologies such as MRAM, phase-change memory, and resistive RAM.

Accelerated Rollout of New Cellular Technologies

According to the LTE World Summit 2012, up to 139 long term evolution (LTE) networks will be deployed across 5 continents by operators in 2012.  This superfast mobile broadband will not only provide a large demand for NOR Flash memory for its own infrastructure, but also provide the communications infrastructure for many of the trends discussed above.

Also, according to Richard Webb, directing analyst for microwave and small cells at Infonetics Research, “femtocells will gain mass-scale traction in 2012, at which point the year-over-year unit growth rate will jump to over 100%, and will stay at triple-digit levels in 2013.”  Femtocells are portable/low-power mobile phone base stations that use a standard internet connection to link with the MNO’s network.  The combination of LTE, femtocells and Wi-Fi networks is going to lead to a persistent, superfast network connection for the widespread usage of connected, embedded devices.

Indeed, 2012 will be an exciting year for Flash memory and Spansion.  The importance and criticality of the information stored on our devices has never been higher and we are dedicated to providing the best solutions for our customers and their data.

Come join us for the ride!

Femtocells: The Next Billion Dollar Market

In a previous blog, I discussed some information from a Cisco report on the massive growth in mobile data and its impact on the economics of the business for mobile network operators.  Here will we explore its ramifications on the build out of future network topologies.  As Lisa Su, SVP & GM, Networking and Multimedia Group at Freescale Semiconductor, discussed at the recent April IDC Smart Technology Conference in San Francisco, conventional approaches of building more macrocells by mobile network operators (MNO) will not cost-effectively meet the mobile data growth requirements.  The likely answer is femtocells.

According to Infonetics in their first quarter (1Q11) 2G/3G/4G Femtocell Equipment Market Share and Forecast report, the total global revenue from femtocells used in consumer, enterprise, rural and public spaces grew 45% during the past 4 quarters (from 1Q10 to 1Q11).  Infonetics expects the global femtocell market to grow 31% in 2011 over 2010 to $300 million and by 2015 to be a multibillion dollar market.

So what is a femtocell and why does it matter?

More complex heterogeneous network topologies will need to be created in order to meet the specific demands of the mobile data community.  Yes, of course, macrocells will remain the main guts of any service provider’s mobile network.  However, given their high cost and NIMBY (not-in-my-backyard) considerations, other tailored approaches, such as enterprise and residential femtocells, will be required.

Femtocells are portable/low-power mobile phone base stations that use a standard internet connection to link with the MNO’s network.  They provide great coverage over a limited area to a single MNO and are often integrated with other technologies, such as DSL modem, WIFI connectivity, etc.  In addition to the restriction to a single network, you can restrict which phones can use the network to provide a private femtocell for a residence or provide an open femtocell for an event.

For instance, when a major technology conference hits a convention center, larger femtocells can be rolled up for a temporary increase in coverage and bandwidth to handle the peak load requirements of all those additional smartphones, tablets and temporary hotspot connections.   Similarly, enterprises using femtocell technologies, can potentially offer better coverage and reception for their employees.  Service industries, such as hotels and multi-unit dwellings, can do the same for their customers.  Finally, individual femtocells can be used to provide coverage for households that have bad or non-existent coverage.

So what does this mean for embedded systems? 

More complex networks will require more intelligent network devices.  Consequently, developers of these solutions will need to design more sophisticated on-board software and management, most of which is best executed on Spansion NOR flash.

Since these systems are more numerous and widespread, they need to be more reliable and last longer.   Once in place, a reliable long-lasting supply of NOR Flash memory is critical.  MNOs cannot afford to have increased levels of service events or frequent technology refreshes due to obsolesces of components.

In short, the future offers incredible promise for the mobile data consumers. Feeding their voracious appetite for data and video can be a profitable endeavor if it is scaled intelligently.  Otherwise, it could be very painful for the MNO’s bottom line.

Apple’s iCloud Pushes Demand for LTE Deployments

About 25 years ago, teens were demanding, “I want my MTV” and driving cable companies to enable more entertainment content. Fast forward to today, they are screaming, “I want my Justin Bieber” streamed to my wireless device. Leading edge companies are rolling out new Cloud services to meet the demand.  Now, the pressure is on the mobile network operators (MNO) to improve their infrastructure to enable the new wave of entertainment content.

This week at WWDC in San Francisco, Apple made its announcement of a new service called iCloud.  Utilizing resources at a massive 500,000 sq. ft. data center in North Carolina, iCloud provides a cloud-based music synchronization service for your OS X and, more importantly, iOS devices.  iCloud automatically downloads any new music purchase to all your devices over Wi-Fi — or over 3G if you choose.  Moreover, iCloud is replacing MobileMe as the synchronization of all the other data types on your phone, including photos, mail, calendars, contacts, etc.

iCloud is not alone in providing rich media via the cloud; Google and Amazon both have similar services.  Others services such as NetFlix, HBO to Go, etc. are not synchronizing rich media, but rather streaming them. The potential millions of iPhone iPad, Android and other users each wanting real-time downloads of music and video must be sending shivers down the spines of the operations and business people at AT&T, Verizon, Sprint, etc.

Enter 4G or LTE (Long-Term Evolution)

Just building more of the same 3G wireless networks will not meet the customer demand and most definitely is not financially viable. To profitably meet the upcoming bandwidth requirements of services like iCloud and other rich-media streaming solutions, MNOs must transition to LTE-based 4G technologies. So what is LTE?

Evolution is the keyword; it is the evolution from current GSM/WCDMA and CDMA networks to a new common standard that promises to be 2-5x more efficient in providing a better experience for end-users and better cost economics for MNOs.   It leverages two critical new techniques for access: Orthogonal Frequency Division Multiplex (OFDM) and Multiple Input Multiple Output (MIMO) antenna technologies.  OFDM can split the data into multiple narrowband subcarriers that handle a portion of the data at a lower bit rate and MIMO technology creates multiple paths between the device and the base station to increase the coverage due to better signal-to-noise ratios and higher user bandwidth.

More Sophistication Requires More Sophistication

Implementing LTE both at the base station as well as the mobile device is clearly challenging embedded systems designers. The complexity of delivering this new-sophisticated functionality requires increased sophistication from the embedded semiconductor solutions.

At Spansion, we are working with our partners to provide NOR Flash memory solutions to meet the needs of these LTE infrastructure systems. High reliability code and data storage is required for these state-of-the-art next-generation communications systems.  Spansion GL NOR Flash memory, with its wide density range, is perfectly suited for this advanced networking gear and helps ensure systems are up and running so users get quick access to content.

Emergence of Heterogeneous Communications Networks

It’s rare to find someone accessing the internet through a wired desktop these days.  Most of us are on the go and using one or more mobile devices – such as, laptops, phones, and tablets – to do work or connect to “our social network”.  The point is that consumers are consuming information anytime, anywhere, and anyway.  According to Cisco’s Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2010–2015,  “global mobile data traffic grew 2.6-fold in 2010, nearly tripling for the third year in a row.”

The growth has been and will continue to be quite incredible – “Last year’s mobile data traffic was three times the size of the entire global Internet in 2000. Global mobile data traffic in 2010 (237 petabytes per month) was over three times greater than the total global Internet traffic in 2000 (75 petabytes per month)” – Cisco.  According to ABI Research, the surge in video will drive global data traffic to more than 60,000 petabytes in 2016.

What does this mean for service providers and equipment manufacturers?  They will need to find more cost-effective methods to provide higher bandwidth and more reliable coverage while discovering better ways to monetize their data traffic since it is becoming an even more dominant part of their traffic over traditional voice traffic.  Incidentally, some of the consumers of mobile data traffic aren’t even human – as the “Internet of Things” such as security, healthcare, inventory & fleet management and telematics take hold.

This explosion in data traffic will continue to demand more equipment to support the internet backbone and the server farms that feed it.  We will see complex heterogeneous network topologies emerge in order to meet the specific demands of the Mobile Internet community.

Spansion is well positioned to support the demands of the Telecom and Networking industry as it makes these transitions.  Over the coming weeks, I’ll highlight the trends happening throughout the new heterogenous networks and how Flash memory is playing a role.