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Cadence Design Systems Inc. Message Board

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  • edabarsteward edabarsteward Oct 27, 2008 11:40 AM Flag

    no future in the EDA

    I forgot to add, pricing is a function of supply and demand. Comparing s/w compilers & debuggers with EDA is like comparing screw drivers with bench saws.

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    • Cadence made the huge, huge mistake of "giving" software away
      for free to their customers or potential customers just to prevent
      missing their numbers for the year. This set a very bad
      precedence, not to mention devaluing the tools and then potentially
      EDA overall, which is why some might think "EDA is dead" or
      "there's no future in EDA". Why then, would EDA s/w vendors
      do this? Not all of them do; you have to look at the source; Cadence.
      They lost sight of what was really important like developing tools for their
      customers and the industry and concentrated on creatively
      doing whatever it took to look good on the street. This
      kind of business can't be sustained. It's not all Fister
      or the executive team's fault. It's what has become of
      corporate America over the last 15 years or so; they've
      let the MBAs and their greedy mentality for making money
      fast dominate, especially in Silicon Valley (how many CEOs
      per square mile?). Synopsys was headed in this direction
      about 8 years ago, then they went back to school. They've
      invested in "people managers" again, whereas Corporate America,
      conversely, has been substituting MBAs (with slicky-dicky
      sales mentalities) for managers with motivational, organizational
      and technical skills. Much of these talented folks left Cadence
      (either on their own or through house cleaning) and landed
      at Synopsys or Mentor Graphics. If Cadence wants to become
      "reborn", or if Corporate America wants to get back to
      producing great products and great services, then they need
      great leaders and leadership skill sets. Plain and simple.

      S20

      • 1 Reply to semicon20yearman
      • Very eloquent, but I beg to differ slightly.

        The EDA industry is "un-natural" in that aside from the big 4, there are hordes of smaller firms populated by engineers who left the big companies. These small companies keep getting bought by the big guys, therefore reenforcing the notion that EDA IP is transitory and that anyone can do it. Look at Cadence... most of their big acquisitions over the past 5 years were for companies run by people who left Cadence. This is like paying for R&D twice. Who ever heard of Intel, or AMD buying their next generation product from a bunch of guys who left the company. This is precisely what the EDA biggies have been doing for years.

        From the CEO on down, the salaries paid to EDA employees (including Cadence) is significantly higher than the salaries paid to peers in the rest of the semi industry. As much as the employees whine about Fister, he paid them at EDA wages and not what a similar engineer would make at Intel or AMD. That's a fact... A new CEO is likely to figure this out early and then we'll see some whining.

        There is a huge future for this industry if (1) wages and spending come down to industry norms (2) IP remains inside the EDA companies (3) they all quit the goofy rev-rec games they play to make their financials look better. If you spend more time selling receivables than you do developing new products, the results will speak for themselves.

        The industry needs to get back to basics... develop products people are willing to buy and then sell those products. Reinvest in the future not in management perks Quit buying start-ups... This all takes discipline and discipline is something the EDA industry lacks right now.

 
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