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BrianBailey
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re: What will the IP landscape look like in the future
BrianBailey   5/16/2013 6:39:12 PM
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Jacek Hanke, Piotr Kandora, Tomasz Krzyzak from Digital Core Design There’s no question that we see consolidation process and the bigger, mostly EDA companies are buying relative smaller 3rd party IP Core vendors. So does the future belong to “800-pound Gorilla”? We daresay not, at least not now. Looking back from the perspective of the company like ours, when we launched our business in 1999, the IP business was mostly a bunch of small startups. But during these years the market has verified most of them and only reliable and innovative were left in business. Of course there are and will be new startups offering IPs, but if their strategy is based only at price dumping, we don’t think they will thrive to stay alive. The only chance, both for new and old players is innovation and robustness. Does it worth to save couple of thousands USD on IP license, when you work on million dollar project? Of course not. The EDA companies know that and that’s the answer to observed acquisitions. On the other hand, highly specialized, reliable 3rd party IP Core vendors are doing more than fine. Many years of experience, innovative solutions and silicon proven IPs are their key to success. So in this case, "the bigger, the better" is not always true in IP market. Many times stuff from the 800-pound Gorilla IP vendors is not as much innovative and reliable as from smaller, but highly specialized IP providers. There’s also second important issue – time to market. Big companies, not only corporations, suffer many times from inertia and hampered decision making. That’s why many projects can be mastered much faster and better by independent IP Core vendor. Just let's take as an example, which company has the most advanced IP solutions eg in 8051? The DQ80251 is a good example that acquisition is not the only way…



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