WILSONVILLE, OR -- Those with the largest share of a particular design software technology are exceedingly difficult to displace, a Mentor Graphics executive observed last week.

Speaking at the Bank of America Merrill Lynch Global Technology Conference, VP of corporate development and investor relations Joe Reinhart said, "[M]arket shares in EDA moved rather glacially slow, but like glaciers, they typically don't change in reverse direction very quickly. You move glacially towards a market share of 70%, 75%. And then there is usually a naturally correcting effect where the end customers like to see some level of competition, but you are able to gain market share pretty nicely up to that level.

"We are of the firm belief that segment leaders tend to gain share and others that are particularly those that are in third and fourth place tend to atrophy. It's that people using technical software can take little years to become proficient in, so you don't like to make change."

Reinhart noted Cadence's 10-years-long leadership position in analog design, and asserted Mentor's "similar positions" in printed circuit board and design rule verification and physical verification. "Our strategy is to focus on building number one positions," he said.

Asked about the prospects for the EDA market in 2012, Reinhart said "its probably about 6%."

----------------------------------

• Prev
• Next