How do you keep the costs of embedded software under control?

Embedded software increasingly determines the value of a product. Especially in complex projects, costs add up and budgets are regularly exceeded. The result: a higher priced end product or a lower margin. Why do software costs so often spiral out of control and what can you do as a developer to prevent this? We spoke about this with Gilbert Gadet, director-owner of Logic Technology and speaker during the Embedded Software seminar at the World of Industry, Technology & Science (WoTS) trade fair.  

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What is your lecture about?

The prices of embedded software make up the approach to the lecture. I want to identify what the largest cost items are during the total lifespan of the product. Most people think of 'software costs' development, but there is much more. You must update, manage, and maintain the software to fix bugs, expand features, and ensure security. This costs time and therefore money. You continue to develop software continuously. It is a complex and lengthy process.

“You continue to develop software continuously. It is a complex and lengthy process.” 

What do companies encounter in practice in the financial field?

Embedded software is becoming increasingly complex. More is technically possible, but at the same time it becomes more confusing and therefore more difficult to maintain. The chance of (latent) programming errors increases. That is why the 'testing' part is so important in the entire software life cycle. Companies have to factor in more time for this than before. It is possible to save significantly on costs if you properly integrate testing and validation into your development processes. Wout Klaren from 3T tells more about this during his lecture: “Embedded Software: Testing is not that expensive!”

You also have to deal with regulations regarding privacy and product safety. This aspect is not always taken into account by product developers when they draw up a budget. The same goes for the costs associated with updating products in the field. This must be done in a safe manner to prevent the product from failing or worse; that hackers gain backdoor access to the software. Discusses during the seminar Mark Boer from AEMICS a method to do this safely. He does this in an appealing way using a practical example.

People often think: we develop a product and as soon as it has rolled off the production line, it is ready. But it doesn't work that simply. There are all kinds of legal obligations that you as a producer must take into account and from Europe these rules are only becoming stricter. For example, the Cyber Resilience Act (CRA) will come into effect for EU member states on January 1, 2027. Here will Bart Scholten from Kiwa will go into more detail in his lecture on legislation and regulations.

What does the Cyber Resilience Act entail?

The CRA is a set of requirements and guidelines in the field of cybersecurity. All products with digital elements must meet CRA requirements from 2027. The aim is to better protect consumers and companies against cybercrime. The CRA not only covers product development, but also maintenance and management. When you buy a product as a consumer, you want to be sure that you can connect it to the internet with peace of mind.    

It is important that you as a company are prepared for these new standards. This takes a lot of time and knowledge building and is often significantly underestimated. There are already software solutions on the market that comply with the CRA and that you as a company can integrate into your own embedded software. This means you have the entire infrastructure in place in one fell swoop. Of course, this comes with a price tag.

How do you keep costs under control?  
 
You save money by organizing the development process smarter and automating certain things, especially in the areas of testing and quality assurance. If you automate the updates of your software, it is safe for the customer and good for the technical lifespan of your product.

Collaboration with parties that have specific expertise also reduces costs. For example, we hire an organization that specializes in (new) cybersecurity legislation. This investment pays for itself because you do not have to reinvent the wheel yourself and you can set up your processes properly in one go. This is beneficial for your wallet and your reputation. After all, a satisfied customer ensures word-of-mouth advertising. Finances are not just about numbers, but also about the image of your company. A positive image is essential for long-term profits. If your baby monitor with camera gets the reputation of being easily hackable, customers will drop out.  

“Finances are not just about numbers, but also about the image of your company.”

You are one of the founders of the Software Cluster within FHI. Can you tell us more about that and what is the link with your presentation during the WoTS?

The Software Cluster was founded, among other things, to better network with software companies that are active in the same niche, so that ties in with what I said earlier about the importance of cooperation. We exchange knowledge and experience, provide references, support each other and organize activities. Several of my business partners are in the Cluster. If I have a question, the cluster members often know what to do. This saves me some research. You will achieve results faster if you work together and this will save you costs. For example, we provide software testing and certification tools to a cluster member that specializes in software testing and certification. That cluster member did not have to figure out how to automate tests himself, because we already have experience with that and we set it up together with him. This is how we help each other. It's a chain reaction.

Finally: why do you think trade fair visitors should come to the seminar?

During the seminar we share our expertise and experiences with visitors, but it is also an excellent opportunity to network and get to know the members of the Software Cluster. You don't have to reinvent the wheel and you don't have to do it all yourself. So don't hesitate any longer and come by!

Are you excited by Gilbert's story? Sign up for it for free complete seminar and the fair via the website: www.wots.nl. See you in Utrecht!