EDA Tool Vendor – A Rose by any other Name?
What is happening in the EDA industry? Irmgard Lafrentz, President and Founder of Globalpress, poised this question to me in a recent phone call. She did a good job of capturing the essence of the conversation in a recent blog: Something’s happening in EDA, and this time it’s good! I want to explore this question in a bit more detail.
First, let’s consider the media side of this question. With the collapse – but not total annihilation – of the print business model as a primary means for funding the development of meaningful content, EDA companies are finding fewer and fewer venues for their technology and product announcements. Couple that challenge with the necessity of reaching a global audience with their message. This means that EDA companies must look for coverage beyond the traditional sources. Hence the push into online and social media outlets. (Yes – there are other reasons for the push, too.)
Secondly, many EDA companies are making a serious push into vertical markets with their technology and products, markets like medical, industrial, automotive and communications.
This “shift” way from being seen as an “EDA tool vendor” to instead being perceived as a “system solution provider” is both evolutionary and essential for business survival. EDA companies can no longer focus solely on the design and manufacture of the chips. Instead, they must consider the chips in relationship to the package and board – and even in terms of both hardware and software. This is one reason why IP has become so critical in the EDA tool chain.
This move away from the nomenclature of the “EDA tool vendor” can be seen in the restructuring of most of the big technical trade shows, too – like DAC and ESC.
So, if you don’t want to be known as an “EDA tool vendor,” then what is the correct phrase? System Solution Provider? That sounds rather PR-ish. But what phrase will capture the essences of today’s EDA company? I’m not sure. What do you think?