( ESNUG 287 Item 3 ) ---------------------------------------------- [4/30/98]
Subject: DEC, Intel, StrongARM, Cadence Spectrum Services & The Alpha Chip
> The most recent rumor about Cadence Spectrum antics really made me laugh!
> Before DEC was bought out by Compaq, DEC & Intel were at loggerheads about
> the technology used in the DEC Alpha chip. How the conflict was eventually
> resolved was by Intel buying the Alpha chip, the StrongARM chip, the fab,
> and all the related engineers from DEC for a hefty $700 million. What made
> me laugh was the recent rumor that Cadence Spectrum Services had managed to
> stealthfully hire away the majority of the DEC StrongARM design engineers
> before they were delivered to Intel!
> - John Cooley
> Industry Gadfly
From: [ Jack Harding, CEO of Cadence ]
John, I wish we were that smart. The StrongARM team called us.
- Jack Harding
CEO of Cadence
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From: Julie Staraitis <juls@uofi.hlo.dec.com>
John,
DEC did not actually sell the Alpha chip to Intel. They sold the fab, they
sold all OTHER semiconductor designers, and they cross-licensed the patents.
Intel will sell Alphas back to Digital, and Digital only. There was also
something about 'if DEC doesn't stay with the Alpha platform for at least
7 years, all Alpha employees will have a guaranteed job at Intel.' That
clause may have disappeared with the Compaq deal.
Minor detail to some, but even though I got sold I get to hear the
non-sold go into a tirade every time someone gets that part confused.
- Julie Staraitis
DEC
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From: Aaron Sakovich <sakovich@hsv.sungardtrust.com>
Hi John,
Just wanted to point out a mistake in your article: you claim that "Intel
bought the Alpha chip" when such is not the case. Intel is being forced to
manufacture Alpha chips for Digital at cut-rate pricing, plus has to buy
Digital's underutilized semiconductor manufacturing plant forcing the delay
of Intel's plant in Texas, plus must pay Digital untold hundreds of
millions of dollars in licensing fees for the technology that they stole
from the Alpha design in the first place.
Digital still owns the Alpha, Samsung is a much larger manufacturer of
Alpha chips than Intel is, and rumors abound regarding at least one more if
not two fabricators coming online.
It is NOT Intel's Alpha chip. It is the only open standard in the industry
unlike the proprietary chips Intel manufactures.
Oh yeah, it's also a heck of a lot faster and was 64 bit 6 years before the
much delayed Merced is supposed to trickle out to developers.
Please consider not repeating Intel's propoganda regarding the Alpha in the
future. The truth is much different.
- Aaron Sakovich
AlphaNT Maillist Moderator
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From: "Ted Frederick" <tedf@Cadence.COM>
Hi John,
I thought I'd never live to see the day... (I just keeled over from a heart
attack... I am now typing from beyond the grave...) John Cooley has a
positive thing to say about Spectrum... WOW! I told you several years ago
that this would be a good thing for guys like you, but you wouldn't believe
me. As for your:
> the typical buyer of EDA tools is now quite acclimated to the idea of
> bringing in outside help *and* paying an outrageous $200 to $300 an hour
> for their work! (Yes!)
'Outrageous'? John, if you take a look at the fully-burdened cost of an
engineer, $1500 to $2500/day is less than the company would spend to hire
that person full-time (facilities, benefits, profit sharing, salary, parking
space ;] )
John, as you are surely aware, the real money is not in charging by the
hour, but rather by project and by milestones (forget the hourly stuff
unless you are just doing libraries or design translation grunt work)...
Regarding your:
> Why should I care if it pissed off Andy Grove, the newly ex-CEO of Intel,
> if this raises what consulting engineers are paid? Why should I care if
> some Nortel managers might be trying to boot Cadence out, if Cadence's
> efforts mean that Nortel engineers get paid more to stay? In my reversal,
> I've learned that those who live in glass houses shouldn't look gift
> horses in the mouth. My error. Spectrum helped increase engineering
> wages. Cool.
The StrongARM guys came to Cadence and wanted to be part of the team.
Cadence immediately notified Intel of this and gave them several weeks to
give them first dibs on the engineers. Intel did nothing, so they came to
work for Cadence... then Intel complained. Go figure...
- Ted Frederick
Cadence
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