> Will selling a "shrink wrap" version of the software cannibalize some
> of your "high end" sales? Probably. But were those customers "willing"
> upgraders or did they feel the pressure of using a now orphaned product
> (ala Microsoft, Autocad to name but two)? Instead you split the market
> into a small (but lucrative) high end market and a much larger general
> market. Now the overall market of realistic sales opportunities is much
> larger.  Only a small percentage of an already niche CAD tools market
> will consider buying $8-10,000/seat software regardless what it does,
> especially when many of the features that drive the pricing have little
> or no value to a large part of the market. On the other hand, a "shrink
> wrap" package that does all the basics and sells for what a decent
> Office applications suite sells for opens a huge new market. I've seen

Matt, I think your market analysis is right on.  The problem I have observed
is that over time as many businesses grow, they forget their humble origins.
They "gentrify" their own product lines into complex, big, expensive
offerings.  They adopt a corporate culture that drives out the brilliance,
dedication, practicality, and loyalty that birthed them.  What is left is a
top-heavy organization driven by ego.  Which sounds more glorious?  "We
provide best-of-breed comprehensive EDA solutions to leading technology
firms", or "We make cost-effective schematic and PCB design software".
Well, I like the latter, but the former plays better to the big corporate
mindset.  I see example after example of big tech firms that have had their
market eroded, and they don't even realize it yet.  It's amazing how the
simplest of economic principles are overlooked by these "bigthink" firms.
By analogy, it seems the major EDA companies all want to be Niemann-Marcus,
but most designers only need Walmart.

Best regards,
Ivan Baggett
Bagotronix Inc.
website:  www.bagotronix.com


----- Original Message -----
From: "Matt Pobursky" <[EMAIL PROTECTED]>
To: "Protel EDA Forum" <[EMAIL PROTECTED]>
Sent: Friday, July 16, 2004 6:13 PM
Subject: Re: [PEDA] Ver 3.x --> 99SE or DXP??





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