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Synopsys Inc. Message Board

  • grzynx666 grzynx666 Mar 9, 2009 10:00 PM Flag

    The SPVD -- Synopsys Primary Vendor Discount

    Hey, EDA shoppers, want a big discount and great payment terms? It sure looks like Synopsys is offering both in exchange for a press release declaring Synopsys as your "Primary EDA Vendor."

    So if you have a renewal coming up simply whisper "Primary Vendor" into your sales rep's ear and maybe you can get between 20 and 30 percent off your annual run rate. Wait, there's more: you might be able to defer payments for up to a year.

    As the many customers that have already taken advantage of this great deal have found, you will still maintain your existing relationships with other vendors and continue to purchase best in class products from the vendors you actually like to use. In fact with your savings you can buy more of the products you really need but cannot currently afford.

    Bluelight specials. Come and get 'em at Synopsys.

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    • You're mistaken if you think SNPS is doing that. Just look at the rev / backlog / cash trends compared to other EDA vendors.

    • You're mistaken if you think SNPS is doing that. Just look at the rev / backlog / cash trends compared to other EDA vendors.

    • edaguru Mar 10, 2009 8:56 PM Flag

      Pretty funny post. Yet, in actuality there is typically quite a bit of adoption and migration to Synopsys technology as the PVD deal typically has some "run rate" increase and also provides enough access such that there is an incentive to use Synopsys over another vendor. In states "Similarly, de Geus said the crisis is accelerating an existing trend in EDA toward lowering costs. “We see this as an opportunity to, together with key customers, do a full-front assault on the total cost of design.”" Translated this means the total cost of EDA tool ownership goes down. You trade in some of the other guys tools to get Synopsys and your total EDA budget outlay is reduced. In these difficult times what semi guy would refuse usch a deal. This is a sign of massive consolidation in the industry where the Gorilla's (SNPS, CDN, MENT) are putting the hurt on the smaller players (LAVA and startups). So for the superior Synopsys tools the migration goes pretty quickly and for the unique niche products that Synopsys doesn't serve well then 3rd parties fit nicely and can survive. So the Synopsys Gorilla is pounding its chest and getting the PVD's. Note that CDN was the first vendor to start massive single preferred vendor and "consolidation" deals and electronic credit cards. Yet with their recent chaos and weakness in product line it puts SNPS in a better position to consolidate away from CDN. Consolidation is all bad for EDA margins, yet works in favor of the large vendor and against the small vendors, so it looks tough on any small EDA company with significant overlap/coexistence with the big 3. And why own Talus when you could own IC Compiler for the same price ??? Just wait until SNPS has cornered the market and then starts to come back to talk with customers about the shared value proposition (ie. raising prices) circa early '90's. At that point we'll see another round of EDA startups to give the customers some price leverage.

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