I was chatting with a career networking group a couple days ago, when I was asked my opinion on the condition of the EDA industry. There were some surprised looks when I said "commoditization". Yes, no industry or technology is immune to the "S-curve" of adoption, that was originally described by Everett Rogers in Diffusion of Innovations (and later adapted by Geoffrey Moore).
SPICE simulation has been around for a long time, so long that that even the laggards (except for possibly Bob Pease) use it as their everyday go-to tool for circuit design. That makes it very difficult to differentiate, since every EDA vendor has one (or more). The result is that the price people are willing to pay gets driven down... even to zero in some cases. Yep... Free SPICE. Linear Technology announced Free Spice software exploits multicore processors in a Planet Analog article today.
-Mike
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