By Sanjiv Kaul, Executive Chairmain, Oasys Design Systems, Inc.
Several people used to ask me questions about why I am
involved with Oasys both as an investor and an active Executive Chairman. Why did you invest in Oasys? Isn’t EDA
in trouble? Aren’t EDA startups having a hard time? Even if your technology is
good, isn’t it very hard for a startup to build a business in EDA?
All good questions.
Investing in EDA can be hazardous to your wallet! The Oasys story is
still being written but I thought I would share my insights. Monday morning
quarterbacks are always right, but it is the analysts who can read the game
while it is being played that are worth listening to. So let me try and put my mouth where my
money is.
There is a reason why so few EDA startups are successful. Too
many EDA startups are launched with a quick acquisition in mind. Often they are
better implementations of key features in an existing design platform. Such start ups typically have a hard
time making it. Not only is integrating that product into existing flows hard
but typically the large companies focus resources to close the gap especially
if the startup is getting traction. There has to be a sustainable advantage
that is meaningful to customers for a business to be successful
When Paul, Harm and Johnson first pitched the Oasys idea to
me I was immediately attracted to it. There were several reasons:
1. Oasys was trying to address a real customer pain. Current synthesis technology was getting
increasingly inadequate for design teams doing large chips. The run times were
too long, managing constraints for 100s of blocks too cumbersome, and the
results coming out of synthesis were not very meaningful given the big impact
of floorplans and physical implementation.. As a result the timing closure problem was increasingly a
back end issue and synthesis was becoming commodity. Most high end teams have
all the different synthesis solutions available to them and use the output of
whichever one delivers the best results after P&R.
2. The Oasys solution was going to be a complete platform. That
meant it would be possible to build a sustainable advantage over the
competition because the product depended on standards to interface into design
flows.
3. What the Oasys founders wanted to do was pretty
audacious. But that is what it takes to be successful as a startup. In EDA if
you don’t have a 10X advantage at least, it is hard to break through the all you can eat, preferred vendor deals that the major EDA vendors like to do
with their major customers. Customers will not switch in a big way to new
technology from a startup unless they see a sustainable lead. If Oasys accomplished what it wanted to
do, then Oasys would have a 4-5 year lead over the incumbents. Synopsys was quickly able to close
the technical gap with Ambit and so it disappeared from the market. With RC
Compiler, it has taken Synopsys longer and that is why RC has decent market
share.
4. The Oasys solution is so different from existing
synthesis solutions that it is a new product category: Chip Synthesis.
5. The founders felt they could develop the product with a
limited investment. That was key, given that EDA had fallen out of favor with
Sand Hill Road.
6. There was a large addressable market. If you don’t see a
path to a $100M business for a start up then you should not do it in my
opinion. It is as hard to build a $10M company as it is to build a $100M
company. But your chances of success are much better with the $100M play.
After I joined the initial angel investors, Paul and his
team went away and worked on the technology. They came back after two and a
half years and said that they thought they had done it! Oasys asked me to join
the Board to help drive the company to the next level. I was excited about the technology but
also a little skeptical. How would the product hold up on different kinds of
designs? Was the product full featured? Could customers deploy this product?
Too many EDA products have too small a sweet spot. They do well on the initial
carefully selected benchmarks but falter on different design styles.
So we spent the next two years validating the Oasys solution
on different design types and converging with customers on needed
functionality. The key was to deliver the best starting point for physical
implementation. That meant producing placed netlists that delivered targeted QoR after P&R. That meant going
smoothly through all the popular P&R systems . That meant helping design
teams to converge to their
floorplan as early in the design process as possible.
It was only after carefully proving out the product that we
announced the company and the product. Oasys has a long road ahead. But as our
mothers used to say, “A task well begun, is half done”!