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Guest blog: Sandeep Srinivasan

December 8, 2009

Sandeep is currently a consultant at Mskribe. Most recently he was Vice President of West Coast Operations, for CLK-Design Automation. Prior to CLK-DA, he was CEO and Founder of Synchronous-DA which merged with CLK-DA and a history going back through Cadence and HLD Systems. He began is career as a CAD engineer at AMD in the x86 group.

EDA and the 50 picosecond problem

There has been a lot of introspection and analysis recently, by EDA executives and analysts as to why we are where we are, as an industry.    There seem to be no easy answers as to why EDA is at the bottom of the economic food chain, in-spite of the stellar growth and demand for electronic devices. We can blame the recent economic crisis, declining ASIC design starts, rising mask costs etc. but the writing was on the wall much before the market meltdown.

EDA ecosystem revisited

One can point to many issues with the EDA industry, and attempt to root cause why we are not being able to get a bigger piece of the semiconductor pie. Few things that come to mind are the following:

The venture capital community seems to look at EDA as a broken business model, with little or no upside, due to the lack of recent exits. An investor recently told me and I quote “The smallest ROI per Phd. is in the EDA industry”.

Large EDA vendors are not feeding the ecosystem.There has been little or no funding for startups or academic research from the large EDA vendors. In addition there is less and less collaboration from the large EDA vendors.While this approach is conceivably good to protect ones’ franchise, it maybe a flawed strategy for the long term, in a technology driven industry such as ours.

Funding for research institutions has fallen out of favor with EDA companies.This is a disturbing trend, considering the fact that a majority of the foundation of EDA software comes from university research.

Large EDA vendors want to mimic the enterprise software (Oracle, SAP) monolithic model. This sounds very attractive to a CEO of an enterprise, as compared to a heterogeneous ‘best-in- class’ model, which would entail internal support and development.The one difference in EDA versus enterprise software, is perhaps the fact that FASB (Financial Accounting Standards Board) or GAAP (Generally Accepted Accounting Principles) rules don’t change at the rate at which the semiconductor process or design requirements change.

EDA startups have always relied on Angel investors who were as passionate about EDA technology as the founders.This is another very important source of capital that is drying up, and is perhaps the one that has serious implications for us as a technology industry. If successful EDA “Angels” don’t feel comfortable investing in our industry, this say’s that we have a serious problem on our hands.

Semiconductor industry (our customer base) has been slow to adopt new technologies, due to cost pressures. In addition they have got used to getting products for a fraction of what they used to spend 5 years ago.This trend compounded by a lack of pricing discipline from the EDA vendors has lead to significant price and value erosion.EDA industry’s disaggregated software ecosystem is clearly hurting the industry. If companies differentiate themselves based on a file format ( CPF versus UPF for instance) , we have some critical thinking to do, as an industry. Efforts such as Open-Access have not gained the traction they should have to propel our industry from competing on issues that add little or no value, such as proprietary file formats. Perhaps ‘Open-Access’ needs to be more ‘open’.

The 50 picosecond problem

The final problem that comes to mind is what can be termed as the ‘50-picosecond problem’. This is a problem where innovation seems to stall when an industry segment nears maturity.

In order to highlight the ’50 picosecond problem’ we can try to analyze the IC physical design tool segment of the EDA industry, as an example.

IC physical design tools from Company S, Company C , Company M and Company M can take the same design and produce results within 50 picoseconds (figure of speech rather than a literal) of each other.

What this highlights is a lack of differentiation amongst physical design tools. In addition, we see new startups in the physical design space, that develop a tool from ground up, only to be marginally better (50 picoseconds ?) than the incumbent tools.

What could be reason for such incremental differentiation in products that are developed from ground up, with the premise of displacing incumbent tools ? Perhaps all the engineers are reading the same books, and implementing the same algorithms again and again ? Could it be that the semiconductor process is scaling so well, that there are no new disruptive physical effects ?

No easy answers

We will attempt to address some of the issues highlighted above in a later blog entry.

Posted by Paul McLellan on December 8, 2009 | Comments (6)

February 2, 2010
In response to: Guest blog: Sandeep Srinivasan
garydpdx commented:

I love that last posting by exEDA_guy! Before as a customer and then in EDA, I had always wondered why the large EDA vendors (S, C, M) offered a collection of point tools that were able to talk to each other most of the time (after some effort) but lacked a common base, a platform if you will. Common infrastructure like a GUI. A good part of the reason why, is that the big EDA guys are organized in silos, with each product division responsible for their own P&L. Each pays for their own GUI team. On the other hand, with a common resource like a shared corporate GUI, each divisional VP will wonder if they're getting their fair share of the pie from their contribution. (Any resemblance to politics is strictly unintentional!) The good news is that like a lot of other software, EDA has moved towards standard platforms like Eclipse. In theory, different divisions of an EDA vendor could look into adding their product as an Eclipse plug-in. EDA users should make more noise about having a common entry point, like a single GUI where they can enter a design and then run simulation and verification, access IP in ESL or RTL, run HLS or RTL synthesis, DFM, DFT, floor-planning, etc.


December 12, 2009
In response to: Guest blog: Sandeep Srinivasan
exEDA_guy commented:

Let's look at how other software companies are able to fund complex software development and still make a decent profit. In IT software development, software stack is the term that's used a lot. The top of the stack is a presentation layer, often Web-based. The middle tier is a business model layer, implemented in C/C++ or Java. The bottom layer is the database. There're similarities with an EDA product, e.g. a P&R tool. The presentation layer is Qt and Tcl. The business layer has all the algorithms. The database is either OpenAccess or proprietary datastructures based on LEF/DEF. You'll notice in the IT stack, all 3 layers have many vendors providing either opensource or proprietary solutions. Even when a solution is opensource it is not zero-cost. Example, HTML is a free standard but many companies buy Adobe software to build their web pages. Apache web-server is free but you still need to hire engineers to run it. Because of these multiple offerings, you can find cheap solutions with very rich features. Similarly, there are many database vendors, some non-free, like Oracle, others free, like MySQL. So a company mostly pay for the R&D cost of the mid-tier and integrate the rest. Why is this possible in IT but we don't see it in EDA? Database vendors (even MySQL guys) make a lot of money without any complex revenue sharing schemes. Adobe has no problems charge a lot per seat with their web development suite. On the EDA side, every tool has to have its own GUI and scripting. Many tools have poor GUI and scripting interfaces that make the tools unnecessarily painful to use. Every tool parses LEF/DEF and build essentially the same datastructures in memory. With OA this is better, but still lack of clear semantic standard tie up engineers' time to continuously hack the datamodel in response to broken DEFs/OAs from other tools. EDA companies perceive little added value in GUI and databases, just as a necessary expense to get a deliverable product. This is ok as long as process technology is evolving as Moore's Law predicts. No one cares about usability if this is the only tool that can tape-out my chip. But as more designs are falling off the bleeding edge the IT model becomes more attractive. If it turns out that a product can win by a smooth design data flow and friendly scripting and GUI, there'll be successful companies building just a GUI or providing consulting and tuning services to OpenAccess or something more 'GNU'.


December 9, 2009
In response to: Guest blog: Sandeep Srinivasan
EDA Bar Steward commented:

You all should take a class in supply & demand. EDA gets what the market is prepared to pay. Customers get the prices EDA vendors are prepared to sell at. It's like saying beer is too expensive. Well, don't buy it if you think it's too expensive. Think EDA is too expensive? Build your own tools, outsource your design, use cheaper tools (Tanner EDA, Altium etc...) EDA - don't think you're getting paid enough? You could increase your prices, get paid less, reduce your expenses. Expand into other segments. Come up with new ideas. For goodness sake - you are not creating the IP. You are a tool that companies use to create IP. You are like a hammer that gets used to build houses - should the hammer maker get paid more because the houses are sold for such high prices? Nope.


December 8, 2009
In response to: Guest blog: Sandeep Srinivasan
Larry commented:

I'm afraid that (dick_freebird) has mostly 'hit the nail on the head'. A very large portion of EDA code, maybe 90%, is just the foundation code to present the user interface for schematic capture, board layout, project management, and file format conversions. If the EDA companies could support an open-source EDA development platform then they would be freed of most of that 90% code maintenance expense and be able to concentrate on what makes them unique. EDA companies should consider a business model that reduces their costs by 80% (common core code) so they can concentrate all their efforts on the high-end customers.


December 8, 2009
In response to: Guest blog: Sandeep Srinivasan
SKSTC commented:

The author says that EDA vendors are underselling and designer (dick_freebird) says that they are overcharging!! You are saying that there is no cost of production: who pays those engineers, the tech pubs, the software engineering guys, the software tools that EDa guys use, the machines they need? People often have a very rosy notion of GNU projects. Good luck about that! I am preparing for GNU chips :)


December 8, 2009
In response to: Guest blog: Sandeep Srinivasan
dick_freebird commented:

As an IC designer I have always rebelled against the greed of the CAE majors. I see continual churning of the tool set in an attempt to extract more rent, despite that for the kind of circuits I do there is not any value added by new releases. The fact is that for anybody working south of the bleeding edge, tools are priced out of proportion to value added. When vendors add more features, my design cycle does not compress because CAD and design management come up with new tool-centric tasks to take back any time savings I might have gained. I keep waiting for a GNU framework to arrive, and a few stable back-end verification point tools, so that we can walk away from these commercial CAE parasites. Unfortunately there is one area where the CAE companies have perfected a skill - that of sowing FUD in the minds of corporate CAD directors, so that they will sign any purchase order to avoid blame for not-the-absolute-best tool selection. My needs are simple and better served by stability than innovation for the sake of market share, because the open spaces for innovation that remain, are not close to the heart of the matter. The more appropriate question is, why do semiconductor design tools not follow a semiconductor pricing profile? The answer I see is, software companies will do anything they can to churn the user base and prevent price compression despite that 99% of this release, equals last release and there is roughly no cost of production. And any cost of maintenance revolves on their continual release of not-entirely-debugged new products so things can never get to zero maintenance. Keep looking for love, because it's going to take y'all a while to find.

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