Industry Expert Blogs

In the stock market, rational investors are always looking for the best possible price for an entry point. Those who participate in a value style of investing will be well aware of the teaching on Benjamin Graham who spoke at length about value and price and how these two are not the same thing. He talked about Mister Market, that is irrational and that the price of a company can go up and down completely independently of the inherent value of the company. A smart investor waits for Mr. Market to put something on sale and then snaps it up. So how does this relate to EDA? Most of the time not at all, and that is a problem.

In the last of the four vision talks at DAC this year, Kathryn Kranen, CEO of Jasper Design Automation talked about innovation in the large EDA companies. She talked about the advances related to the latest process technologies, but she also chose to talk about one strange innovation, the subscription licensing model. While important, I believe that Kathryn herself may have contributed an even more important business model: find the point at which price and value equate for supplier and client. Let me explain a little.

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