Development processes in which software is integrated in hardware products are explored with the aim of finding obstacles to the development process and hypothesising how they can be dealt with. Empirical data are based on case studies in nine manufacturing companies chosen to have a varied amount of software in their products and experience of technology integration. Results indicate that obstacles in experienced companies concern processes, structures and resources but few culture-related issues. In companies with short experience of software integration in hardware development, cultural aspects were important. Where new technology played a strategic role in the product function, organisational issues such as structures, processes and cultural differences formed obstacles. Where technology only had a supporting role, resource-related obstacles such as lack of competencies were more important. Managerial measures tended to be partly related to the different types of obstacles, partly to the strategic situation of the company.