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EDA Meets .COM HOW E-SERVICES WILL CHANGE THE
EDA BUSINESS MODEL Session 15 Tuesday, June
6 430 - 600
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Panel Discussion Points

• For EDA
• How will e-services transform sales channels,
  interoperability, and addressing customers needs?
• For ASIC vendors
• How will e-services change how end users design,
  and how vendors deploy their services?
• For Investors and Service Providers
• Whats real, whats the market, and how does this
  affect valuations and business strategy?

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Panelists

• Jennifer M. Smith, Dain Rauscher Wessels
• Jacques Benkoski, Monterey Design Systems
• Adriaan Ligtenberg, Cadence Design Systems
• Greg Spirakis, Intel Corporation
• David Dick, Fujitsu Microelectronics
• Bruce Toal, Hewlett-Packard
• Mike Schuh, Foundation Capital

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Panel Format

• Each speaker will present 5-7 minutes
• Focused areas of concentration for each speaker
• QA from the audience

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EDA Meets .com How E-Services Will Change the
EDA Business Model
Jacques Benkoski, CEO President Monterey Design
Systems
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Will e-Services Transform the Sales Channel ?
Answer Not really

• EDA e-Services is not Amazon, rather HP or Oracle
• EDA e-Services is still a highly technical sale
• The market is small and is results-oriented
• The adoption of EDA e-Services will require a
  significant effort
• EDA e-Services sales - like all industries - will
  benefit from higher productivity

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Will e-Services Push for more Interoperability ?
A little more...

• Large companies will need to make their flows
  work better to support higher automation - is
  this new ?
• Community Web-sites will push for multi-vendor
  flows - how much more leverage than current
  customers will they have ?
• Inside use of Web-deployed tools will push for
  more integration and automation - more than
  before
• The key remains flow ownership - who owns the
  flow will want interoperability
• Business model shift is the major driver - align
  EDA financials to be more aligned to customer
  objectives

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How are the Customer Needs Addressed ?
This is new !

• e-Services is a brand new opportunity handed to
  EDA to correct past mistakes
• Customers want a worldwide distributed design
  capability with interoperable tools
• Customers want accountability
• Customers want service
• Customers will pay for true value delivered (look
  at IP as an example)

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e-Services and ASIC Vendors
Change in deployment, same players

• ASIC vendors are so far the only players willing
  to be accountable for a complete design flow
• EDA e-Services will open more opportunities, make
  them more efficient and kill the ones that fall
  asleep
• EDA e-Services can dramatically change the
  interaction between ASIC vendors and ASIC
  customers
• ASIC vendors will be driving e-Services
  deployment
• Internal flows within IDMs will lead ASIC

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Montereys eDolphin

• Collaborative, comprehensive e-Service offering
• Integrated flow from netlist to layout
• Internet-ready Global Access business model
• Realigns EDA financials with customer goals
• Maximum productivity gain, worldwide access
  support
• Compensation for true value delivered

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EDA, e-Services and Wall Street
Dont play it again, Sam !

• e-Services is a new partition handed to the EDA
  players
• We can play it right and seize the opportunity
• We can grow our Total Available Market, service
  our customers, make ourselves really part of the
  semiconductor food chain
• We need to use this opportunity to profoundly
  change our business models, our relationships
  with customers and the value we provide
• Wall Street will reward for value, not Marcom

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Internet Services

• Adriaan Ligtenberg
• Sr.VP. and GM
• iDesign Environment Group

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Impact of Internet on the EDA industry
Participate in electronics market place stream
line electronics industry supply chain
Internet the new Economy Open Market
Opportunities
New e-Services opportunities that bring
significantly higher value to customers
Key Enabler to Reduce Electronic Design TTM
Key enabler for Cadence Design Environment
Services
Flexibility and efficiencies, lower sales
delivery costs, enables new models
Internet Streamlines Sales Delivery
Fuels increased demand for traditional EDA
products and services

• Rapid Growth in Internet
• Infrastructure Appliances

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Overview

• Internet is Having Transformational Impact on
  Almost AllIndustries
• Impact on Electronic Design will be Profound
• Cadences Internet Strategy
• Streamline Electronic Design Speed
  Time-to-Market by Creating Electronics Industry
  Supply Chain Portals
• Speed Time-to-Market by Over 30, Improve
  Predictability and Lower Costs with New
  Internet-enabled Design Environment e-Services
  Offerings
• Deliver Customer Flexibility Efficiencies
  Through New, Internet-era Business Models

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Electronics Industry Supply Chain Portals

• Disagregation Internet Provide Opportunities
  to
• Streamline B2B Relationships
• Speed Time-to-Market
• Electronic Designers Make or Influence Purchasing
  Decisions When They Make Design Decisions
• Our Strategy Partner
• Connect Worlds Largest Base of
  ElectronicDesigners to Supply Chain through
  Portals
• First Supply Chain Portal - SpinCircuit -
  Launched April 2000

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SpinCircuitPCB-Supply Chain Partnering
Design Desktop EDA Vendors
SpinCircuit
Supply Chain
Component Suppliers
Contract Manufactures
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Delivering Flexibility Efficiencies
New Internet-era Business Models for EDA

• Three Primary Engagement Models
• IAP (Internet Application Provider)
• ASP (Application Service Provider)
• DESP (Design Environment Service Provider) -
  unique to Cadence
• IAP-gt e-commerce Most EDA Internet Activity in
  This Area Limited Value
• ASP -gt Some very good examples Verifications
  QuickCycles but not applicable for all EDA
  applications
• DESP -gt In prototype stage and the future
• Internet Brings Flexibility Efficiencies to
  Customers
• new business models (pay-per-use,
  pay-per-project)
• new use-models (download apps, apps-on-tap)

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• Greg Spirakis
• Vice President, Intel Architecture Group
• Director, Design Technology

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The Gaps
Reality Gap Internet Valuation Closes the
Productivity Gap
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The Gaps
Reality Closing the Productivity Gap Closes the
Valuation Gap
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Closing the Gap

• Leading CAD Technology
• 1 Problem
• Infrastructure
• True Interoperability
• Tool
• Library
• IP
• Collaboration
• IP management
• Data Sharing
• World Class Service and Support
• Knowledge Databases
• Training
• Delivery

Big Opportunity
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Open Infrastructure
EDA Spending

• Opportunity
• The industry is spending 7-9 billion on making
  tools work together.
• Ron Collett, Collett International
• IP Reuse is significant productivity improvement
• Internet Impact
• Open source, community source, open community,
  etc are enabled by Internet
• Linux shows open source works for infrastructure
• Open initiatives are forming
• OLA, Accellera, DAPIC,
• Various products emerging for collaboration
  management

Source R. Goldman
Billions
Open Infrastructure Foundation for Growth
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Where Does the Future Lie?
Today
Harness the Internet to Grow through Open Systems
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The Web Based Design Environment - New Customer
Options for Semiconductor DesignDavid
DickDirector Advanced Technology
DevelopmentFujitsu, LtdSan Jose, California
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How is the Web Impacting our Business

• The web is facilitating expanded interactions and
  capabilities between customers and vendors,
  allowing increased design effectiveness, improved
  project management and time to market
• EDA tool interoperability will facilitate leading
  edge tool development
• EDA and Semiconductor companies will move to web
  based service and licensing
• The paradigm is shifting
• Previously, design methodologies depended on
  design teams and target applications this was
  dictated by the development team preference
• Silicon suppliers insure the quality of design
  through libraries, chip architecture, technology
  files, enhanced internal and EDA tools, and now
  methodologies
• New Web design frameworks will support all these
  together, provide flexibility, ease of use, and
  insuring a quality design within the TTM window
• The Customers are the winners!

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A Web Enabled Design Environment

• Worldwide consistent Fujitsu design environment
  for
• Online Methodology Documentation
• Modular Methodology Capture
• Supports both EDA and internal tools
• Block Oriented Concurrent Methodology Execution
• Design Center Administration
• Chip Implementation Status
• Enables interactive capture of worldwide Fujitsu
  methodology expertise
• Allows execution of design methodologies over the
  web
• Enables worldwide collaborative design
• Provides IP Authoring and IP Integration for
  System-on-Chip designs

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Server Accessibility
Computer 1
Computer 2
http//host.fujitsu-fme.com
HTML Display
Computer 3
User Interface
Methodology Execution
Tool Execution
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WBE Network Architecture
FUJITSU
CUSTOMER 1
Firewalls
Engineering W/S
Web Server
Customer W/S
http
Browser
Browser
Customer Intranet
Program
Internet
Methodology
HTML
HTML
HTML
Possible Scenario 1
Netscape, Internet Explorer
CGI
Sun, HP, HAL
Apache
Future
Fujitsu Intranet
Today
Compute Server SUN, HP,
HAL
Archive Server Design Data
CUSTOMER 2
Batch Job
Version Control
EWS
WEB Server

Possible Scenario 2
Customer Intranet
NQS, LSF
CVS
Internet
Compute Server
Archive Server
IP Bank
Factory
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Executable Methodology
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A Web Based Design Environment
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• Bruce Toal
• Hewlett-Packard Company
• Worldwide Server Marketing Manager Technical
  Computing Division

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A market primed for CPC
Source Deloitte and Touche
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From E-Commerce to C-Commerce
Source Gartner Group
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Portal Building Blocks for CPC
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E-services for CPC
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Designers4U
Apps-on-tap - Portals - Brokering
Find your optimal resource
Circuitsltd.com
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Mike Schuh General Partner Foundation Capital
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Whats Wrong with this picture???

• Venture Capital Investment in
• Information Technology in 1999 8B
• Venture Capital Investment in
• EDA in 1999 65M

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Core Issue
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Whats Missing???
Leadership
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Whats Next

• Embrace the Internet Architecture
• New Business Model