( ESNUG 438 Item 12 ) ------------------------------------------- [01/18/05]
Subject: 10 Users Who Fear This Merger Reduces Competition
> 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?
When the big fish swallow up the little fish, it is always bad news.
Diversity encourages innovation.
- [ An Anon EDA User ]
In my opinion it is a bad thing that the control over "e" is taken
over by one of the Big Three. This could reduce competition because
a smaller one growing kept the R&D of the big ones going.
- [ An Anon EDA User ]
Bad news... a design platform independent verification tool just
disappeared. For everyone except Cadence it is bad news.
- [ An Anon EDA User ]
This is bad news. Verisity had simulator independance, which over
time will be lost. Will also mean that E probably gets killed off,
even if slowly.
- [ An Anon EDA User ]
It's bad news concerning the decreasing competition.
What I liked was the competition in the area of Emulation/Acceleration.
We had an expert discussion within our company whether it would be more
beneficial to have one and the same emulation supplier at all sites or
to let every site decide for themselves.
The clear outcome was that the latter is more beneficial. One of the
reasons was that prices we can get from the EDA vendors are certainly
better with the threat of an alternative supplier in the background
than with the slightly 'larger quantities' of the corporate deals.
From the technical point of view, it might make sense. But it's a pity
the EDA user don't decides the "survival of the fittest (EDA concept)",
but the vendors.
- [ An Anon EDA User ]
As far as EDA vendors are concerned, this is bad news. This is another
instance of market consolidation, making it that much harder for
independent (read: non-Cadence/Synopsys/Mentor) companies to compete.
As an EDA user this is currently a mixed bag. I doubt Cadence will
continue to support two verification languages; SystemC Verification
Library and e. One of the two languages will receive less support
than the other and users of that language will be left holding the
short end of the stick. My question now is how this will come to
pass? Will Cadence explicitly drop support for one of the solutions
and migrate customers to the other or will one receive less attention
from Cadence than the other and die a slow death?
- [ An Anon EDA User ]
As a user I believe it is bad news. While all these acquistions
are peddled to provide 'tighter integration', 'consistency' etc.,
the truth usually is that interoperability with any suite other
than the parent company's goes down the drain. New features and
enhancements are likely to be tied/optimized to one (guess whose)
flow. While interoperability will be kept on the marketing
brochures, the small print in the user manual will tell me I'm
pretty much SOL.
And so we're rapidly gravitating towards a two-vendor duopoly,
Synopsys and Cadence, and never the twain shall talk... Of course
with the burgeoning cost for ASICs, the tool market is shrinking on
them. And I do not know whether seeing the FPGA vendors eating
the ASIC/EDA vendors' lunch is good or bad - it probably just is.
- [ An Anon EDA User ]
Bad News. In one year, Specman and the 'e' language will no longer be
relevant, since Cadence will not know how to market, promote or develop
the tool. This merger signifies the end of e. That is a bad thing
because it leaves fewer tools for users to choose from and reduces
competition.
- [ An Anon EDA User ]
I don't think it is a good news. The EDA market should have more
competitors so that we can have cheaper software. Monopolization
is not good.
- [ An Anon EDA User ]
Bad. Because monopolies/duapolies are bad for competition and in
the end for quality of products. With other similar products in the
pipeline, Cadence will let Verisity peacefully die in its sleep.
Bad. Because it's just another company Cadence is trying to swallow
with its belly full of other indigested companies. And we all know
what poor digestion can lead to; bloating, constipation, heartburn,
bad breath and diarrhea are just a few problems.
- [ An Anon EDA User ]
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