( ESNUG 438 Item 9 ) -------------------------------------------- [01/18/05]
Subject: 7 Users Worried Verisity Specman "e" Price Will Go Up
> Cadence announced it's buying Verisity for $285 million in cash.
>
> As an EDA user, do you think this is good news or bad news? Why?
As a user, it is a bad news. The merger inevitably causes the software
license prices to go up, the support of the permanent licenses will be
terminated some time in the future, the user needs to pay again to
"upgrade" to a newer "enhanced" product, with a different product name.
Gee! Haven't we paid the annual maintenance fee already? Why should
we need to pay for software "upgrade"?
- [ An Anon EDA User ]
Bad. The price of Specman will go up.
- [ An Anon EDA User ]
From one user's viewpoint, Cadence's Verisity buy is:
Good for the Verisity principals, obviously, as it validates their
approach to tools in at least one big way ($$$$).
Good for Cadence since this is the way they freshen themselves, buying
up new products to stick under their umbrella as their older tools run
out of steam, architects and engineers who wish to work on them to keep
them fresh.
Good (mostly) for users since now the Verisity products are supported
by one of the gorillas, and can compete better in the space with things
like Formality.
Bad (a little) for users who were thinking about buying Verisity
products, as the price will now go up.
You didn't ask this, but I actually expect the VManager tool to gain
considerable traction, driven by the user organizations with complex
verification management needs.
- [ An Anon EDA User ]
I have yet to see a case where the price of the software didn't go up
when Cadence bought the company. First Encounter, Verplex, you name
it... increased bundling (often including features we, as the customer,
aren't interested in) with a commensurate increase in price. In this
regard, it's a negative.
If there are opportunities for features and functionality of existing
Cadence tools to complement those of Verisity's tools, that may be a
positive.
- [ An Anon EDA User ]
Every time the big one takes a small company, you worry about two
things: the price hike and the quality continuance.
From competition point of view, we like more good small EDA vendors
around; hate to see another good company gone.
- [ An Anon EDA User ]
I guess we'll have to wait and see what alterations this makes in
Cadence's story for verification, and also what impact it might have
on the cost of the Specman tool.
- [ An Anon EDA User ]
Bad, less choices & leverage in price.
- [ An Anon EDA User ]
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