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Cadence CEO says EDA marketing must change

Posted: 02 Mar 2005 ?? ?Print Version ?Bookmark and Share

Keywords:eda? cadence?

EDA companies will be more cognizant of customer needs and rise above being an industry that is one indulging in technology babble, Cadence president and chief executive Michael J. Fister said in a visit to Cadence's India centers at Noida near New Delhi and Bangalore.

Fister said his experience before joining Cadence was that the EDA industry was too rooted in how, rather than what it should do.

"Tools are merely a means to an end and a pivotal change in the EDA industry will happen. It (the EDA industry) will go from being a technology potpourri and a pure supplier to being a partner to customers. We need to become an invaluable partner, such as a SAP or an Oracle and we should partner early, fast and deep," Fister said.

According to Fister, the evolving marketing model for the EDA industry will emphasize cost savings to customers, quicker time-to-market and integrating features and value, rather than merely selling one more tool suite. Providing solutions has become an abused phrase in the EDA industry, Fister added.

Cadence itself is drawing up a usage profile of customers in order to make them more successful. While the subscription model will continue, a geography-based business model will also make sense, according to Fister. He expects the EDA industry to change from merely providing tools or charging consulting fees to one sharing the gains electronics companies derive.

"We are carefully targeting the first forays in the mutual interest of EDA firms and the electronics industry. This is not a shotgun approach targeting everybody, and what is different about it is that we will demonstrate clear benefits to customers and become more predictable. It is a real opportunity," Fister said.

Cadence will build kits of various capabilities as opposed to being one that comes up with various points of capabilities. "We will identify segments of the customer base, and have made a start with wireless design," said Ajay Malhotra, senior vice president of product marketing for Cadence.

He added, "There will be more hyper-segmentation of customer needs from an application and customization perspective and the true impact will be seen when customers are convinced that we are their partners," he added.

- K.C. Krishnadas

EE Times

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