When we look back on 2009, it will no doubt be a year many people would like to forget. The economic downturn has caused many companies to take a close look at their costs and their planned investments, and in many cases make drastic changes.

The effects ripple up and down supply chains and throughout entire ecosystems like a bad cold. Indeed, some embedded computing segments have seen double digit declines this year.

That’s why I was pleased to learn recently that the market for AdvancedTCA (ATCA) products has been so resilient in 2009. Data from analysts who track the space predict this year will look a lot like last year, in other words just a few percentage points from 2008 levels.

So why is ATCA remaining resilient while other segments bend to the economic winds? One key reason is the Tier II and III Network Equipment Providers. They are producing much of the cutting edge ATCA-based equipment providing innovative new services that are driving revenue for the Service Providers. It may also be that even in the downturn, NEPs feel that now is the time to start gearing up for emerging technologies like LTE. To paraphrase hockey great Wayne Gretzky, you have to skate to where the puck is headed, not where it is currently.   

Analysts predict the market for the xTCA family of products (ATCA, MicroTCA, AdvancedMC) will return to stable growth next year along with the rest of the economy. In other words, the puck is about to pick up speed. Let’s keep our skates sharp!