Is cheap EDA tool an oxymoron?

Business schools teach us that the way to set the price on a product has nothing to do with the cost. You sell it at a price that the market can afford.

Semiconductor industry was able to afford heavy price tags on EDA tools. However, with the current economic outlook everyone is feeling the pinch. This has left the EDA tool providers with a dilemma of how to re-price the software.

Yet, what image comes to your mind when you hear “Cheap EDA tool”? Crashing tool, minimal support, all-around pain in the behind, more pain than it is worth etc. etc. I am talking about the commercial tools provided by companies and not freeware. With freeware you already know what you are getting into …

President Obama is against outsourcing, but outsourcing is a double-edged sword. Outsourcing becomes a problem when the benefits are not passed on to the public at large. If companies save money by doing development in India why don’t they pass on the saving to their customers. That’s where the first point I made about pricing comes in. Public continues to afford and companies continue to charge their established rates. Company shareholders do benefit but for how long? The teachings at Business schools may not be prudent in the long run.

Coming back to the original question, the answer is, “No” EDA tools can be cheap and espouse quality if companies pass on their savings to their customers. This would help the industry and may even revive it.

We have created our tools with the minimum of investment and a lot of sacrifices which has kept the cost basis low. We are passing on the savings to our customers and the results are astonishing. Customers are amazed at our value proposition. I am hopeful that we can keep it that way.