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Cadence Design Systems Inc. Message Board

  • thakurvk thakurvk Oct 26, 2008 10:37 AM Flag

    EDA squeezing its own neck

    The "greed" to show higher growth in year 2006 and 2007 has resulted in current decline in 2008. Mr. Fisters Kits and Segmentation strategies didn't work to fix "EDA growth" problem. You can fix car fuel efficiency by cheating on indicators. May be the idea was to cheat a little bit to have pull through effect and kits/seqmentation/.. etc will finally work. It didn't work.

    EDA growth problem is a big one..

    EDA has over priced products and under priced services. They lead with product and through in services on side. EDA customers squeeze too much on prices and EDA cuts back on quality of services. This is spirally downward path.

    EDA customers build their own services layers around their usage. Majority of EDA products remain supplies behind these services layers. Customers are not loyal to supplies and ready to squeeze even hard on next project.

    Some of the EDA companies like Versity tried leading with services model very successfully. Time has come to give this a serious thought.

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