EDA / IP Business Model Debate: Daniel Nenni versus Aart de Geus
First, lets review the business model transitions EDA has seen. We started with perpetual licensing which is a software license for the life of the product. EDA companies did their best to change product names to get incremental revenue above and beyond the yearly 15% maintenance fee but that is a dead end business model for a confined software industry like EDA.
The concept of a 3-year time-based license business model came from Avant! (definitely not a status quo company). I salute the person who came up with it, it literally saved EDA. I doubt it was Gerry Hsu (Avanti CEO) but he most certainly took credit for it. I sold time-based licenses at Avanti and I can tell you it was one of the reasons Avant! did so well. Business models are everything.
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