EDA awaits Internet revolution

Panel members from Cadence Design Systems, Toolwire, InTime Software and Monterey Design Systems presented different ways vendors are approaching the Internet, starting with their own companies.

The panel marked the first public presentation by InTime Software, a startup that is developing an "engineering enterprise management system," according to the company's Web site. During the discussion, Toolwire also revealed that it is broadening its scope to become a "design chain portal" company.

"With the Internet, we can do much more in the whole process of bringing value to our customers," said Aadrian Ligtenberg, vice president of Cadence's new iDesign Environment Group. He said the Internet can streamline sales and delivery of EDA tools, and more significantly, open a broader market for electronic industry supply chain portals.

Cadence recently helped launch SpinCircuit, an independent company that aims to link the various companies in the pc-board design chain, including EDA providers, component suppliers and contract manufacturers. At the ISPD panel, Ligtenberg revealed that Cadence is pursuing a similar model in the IC design arena.

Ligtenberg also outlined the iCadence Internet initiative, which will offer the ability to download EDA software, "rent" software on an application service provider (ASP) basis and create complete design environments that will not be restricted to Cadence tools.

George Janac, president and chief executive officer of InTime, said relatively little about his new company. But he repeatedly stressed the need for collaboration, an issue that InTime's Web site says the company will address.

"A couple of smart guys can build a point tool, but they can very rarely bring them to maturity," Janac said. What's lacking is a channel — and that's what he believes the Internet can provide.

Call for collaboration

Beyond that is the need for engineer-to-engineer collaboration. "You can open a chat line to a starlet in Las Vegas more easily than you can talk to someone in the next cubicle," he said. "The notion of collaboration hasn't hit yet."

What's needed, said Janac, is a "new desktop" that allows two-way communication.

Janac went on to talk about how Internet-based EDA companies can actually make money. Various approaches include "collaborative subscriptions," payment for accurate wire-load model prediction and selling tools, which InTime apparently intends to do. Janac said he believes the total available market is $6 billion a year, double the current EDA market. Some of this, presumably, will come out of the non-recurring engineering fees currently paid to foundries.

Mark Gilbreath, director of business development at Toolwire, noted that the Internet will open the door to new business models. He said that tools and services will be accessible "anywhere, anytime," and that companies will be able to draw from a global pool of talent.

Toolwire, which has previously announced EDA tools on an ASP basis, is moving into the "design chain management" market, said Gilbreath. The intent is to link disaggregated portions of the design chain, including EDA software, hardware, training, intellectual property and design services. Toolwire will offer, he said, "a single point of contact that allows you to manage the design process."

Dinesh Bettadapur, vice president for corporate strategy at Monterey, said that his company's recent eDolphin announcement follows an "e-services" model that is much more comprehensive than an ASP approach. This model, he said, includes "24/7" service and support, and a high level of scalability and reliability.

The eDolphin product is a version of Monterey's placement and routing system that runs on a customer's network, and can be accessed locally or globally. Monterey offers several different business models, including time-based licensing.

Reality check

Panelists took some heat from audience member Patrick Groeneveld, principal engineer at Magma Design Automation. "I think a lot of dreaming is going on," he said. "Go back ten years to frameworks and the CAD Framework Initiative, which came to absolutely nothing. Why is this any different?"

"The integration of multiple point tools is going on everywhere in the world," responded Gilbreath. "Why can't it be centralized and commoditized?"

Other panelists expressed concern that Internet business models will make tools cheaper, or free, making it hard for EDA companies to make money. Ligtenberg said the EDA industry will shift from reliance on tools toward a "platform business" based on services.