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In this paper we present ESIDE, an integrated development environment for component-based embedded systems. It leverages component-based software engineering principles to facilitate efficient, scalable, and robust hardware/software co-design, co-simulation, co-verification, and their seamless integration. We first describe the architecture and features of ESIDE. We then discuss several design decisions that we faced in developing ESIDE and the trade-offs in making these decisions. To provide perspective, we report our experiences in re-engineering TinyOS-based networked sensor systems into complete component-based designs that cover both hardware and software.