Standards–why do we do it?
Posted by Karen B on 27th October 2011
An analogy of “three big dogs hovering over a bowl of dog food” has been used to explain the business challenges of the EDA industry. This oft-cited quote is attributed to Cadence’s founder and first CEO, Mr. Joe Costello, debating how EDA had become a fixed-pie industry on a panel at DAC in 1995. For history buffs, amusingly, the response from Synopsys’ CEO – then and now – Dr. Aart de Geus, was “If you think of yourself as a dog, you only deserve dog food!” Surely, the quote was highlighted out of context; but it leaves one with the nagging question of how does an industry go about growing the pie rather than redistributing the fixed pie? Of course, there are many well-proven business strategies for doing so, and standards is certainly one of them.
An ecosystem built around technologies that are based on support for industry standards has many advantages. Even while pointing to Apple’s success through a strategy of controlling the entire ecosystem, one must realize that all those consumer devices connect through well-known standards such as Wi-Fi (IEEE 802.11n) and USB, and the iPhone connects through different phone carriers. It will also be interesting to watch whether Android can topple Apple again like the IBM PC compatibles did decades ago.
The point is that standards – specifically, standards-based interoperability – enable two or more industries/industry segments to interact with each other to provide a desired and complete solution, thereby growing and benefiting each of the industries.
However, the mere creation or existence of a standard does not by itself grow the market. In fact, until it is widely adopted, it is difficult to say whether there is actually a standard or not. To produce an actual standard, adoption of the standard needs to be shepherded through product introductions, education, books, conferences, white papers, and so on. It’s also necessary to nurture new business models, forge partnerships, and continue on an evolutionary roadmap for a period of time before it becomes apparent that the use of certain technology has become a standard. The length of this time varies by industry and degree of difficulty to implement the standard, and in the EDA industry it is usually at least 2 years.
A good example of an EDA standard that grew the pie is SystemVerilog. Based on contributed technologies, it took (arguably) about 3 years to complete and have serious adoption begin. At present, there are at least 125 products, solutions, and training offerings that make up the SystemVerilog-enabled market.
Feeding more dogs with a bigger pie makes everyone – suppliers, customers, and investors – happier.
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I can hardly believe it. I’ve been in the EDA business since 1980 when I joined TI’s Design Automation Department after graduating from Cal Poly with my BSEE. Since 1995, much of my attention has been focused on EDA standards. I reached a moment of truth this year when I admitted, albeit reluctantly, that I could be called a standards-lifer. So, I decided it’s time to share my perspectives on what’s going on in the standards arena. Welcome to my blog - I can’t wait to hear from you!