REGISTER | LOGIN
Breaking News
Blog

Commentary: Cadence-Mentor: facts vs. emotions

Bolaji Ojo
6/19/2008 05:00 AM EDT

 2 comments   post a comment
NO RATINGS
View Comments: Newest First | Oldest First | Threaded View
jt_wizard
User Rank
Author
re: Commentary: Cadence-Mentor: facts vs. emotions
jt_wizard   6/19/2008 7:18:07 PM
NO RATINGS
Not seeing the facts there that show this is a good deal vs emotional statements. You seem to praise Fister's courage, but isn't that an emotional response? Additionally, you state the MENT is a fading #3. But looking at the industry trends, they have slowly been gaining market share - going from 12% to 15% over the past 5 years. With the recent addition of Sierra and growth in key areas they announced in the last two quarterly calls, they may become #2 in 3 years time. Using the Yahoo example has little bearing on this situation.

needa
User Rank
Author
re: Commentary: Cadence-Mentor: facts vs. emotions
needa   6/19/2008 11:23:30 AM
NO RATINGS
This article fails to make its case that resistance to the Cadence/Mentor deal is based on emotion. To do that it would have to have named some facts about the deal rather than discuss Yahoo. But that said, is resistance to this deal based on facts or emotion? It depends on the facts you choose. It's interesting to note that the only commentators who have applauded the deal come from ivory tower number crunching magazines like Forbes. These folks are only looking at the number "facts." However, they really don't understand the difference between theory and execution. If you add the numbers on the Cadence and Mentor balance sheet you may get a rosy picture. But when it comes to execution there are hard questions that need to be asked about how one would achieve the potential seen in the numbers. There are other facts, cited by analysts with industry experience, that suggest the difficulty of achieving the potential. The post merger management team will need to address the following questions: * How would we merge two dramatically disparate cultures? * What is the HR plan to keep the best people from both companies? * Questa and Incisive are essentially the same product. How would we merge them. * Board products are notoriously difficult to switch. How would losing the Mentor board customers or Cadence board customers affect the numbers? * How would we merge Mentor's product groups with Cadence's product groups without completely stopping development? * How would we merge the sales forces and how would we deal with twelve months of depressed sales caused by people focusing on politics rather than customers? Execution is king. If we've learned anything from 8-years of George Bush its that there is a big difference between lofty ideals and execution. Let's hope that Fister doesn't declare "Mission Accomplished" if he closes this deal. Showing proper respect for the execution nightmare associated with the merger is not an emotional response. It is a highly logical one based on the complete set of facts not just the numbers.

Like Us on Facebook
EE Times on Twitter
EE Times Twitter Feed