Evan on Engineering Software

I  wrote a short article earlier today that mentioned Jay Vleeschhouwer, a stock analyst who follows the CAD industry.  Looking for an appropriate link to include in the article, I found an article in Peggy Aycinena's EDA Confidential web site that reminded me of why Jay is so respected by the power-elite of the CAD industry.  Here's what Peggy had to say:

Before I sat down to write up the EDAC CEO Forecast Panel  that took place last Thursday evening in Palo Alto, I crossed paths with a guy close to the EDA industry who gave me a severe talking to.

He told me that the problem with EDA is that the only thing the EDA press ever does is repeat rumor and gossip – that they don't do what they should be doing, which is to focus on the technology and the customers.

He told me that all the EDA press ever does is look at Cooley's site and repeat rumors that they see there, that Cooley's not really doing analysis, he's just providing a billboard for people to post their opinions. He told me the only person doing what should be done, is Jay Vleeschhouwer, because Jay's really talking to the EDA customers and finding out what's working and what's not.

I said, "But Jay Vleeschhouwer's not with the press."

"Yeah," he said "But he's doing what the press should be doing. He's talking to the vendors and then he's talking to the customers."

"But," I said. "The vendors don't really want the press to talk to their customers. They want to filter the entire message and make sure it's got the right spin, the right 'first-time success' story in place before the press hears about it. And besides, that's the only kind of press the vendors are willing to support through their advertising."

"Yeah – well, the people in the press should have their own internal contacts at the customers. They should be able to call up their contacts and find out the real story. Like Jay does. The only other person who does it right is Gary Smith."

"But," I said. "Gary Smith's not in the press either."

"It doesn't matter," he told me. "He's doing it the right way."

I asked him: "So let me understand – the only thing wrong with the EDA industry is the press?"

"Yeah," he said. "The dynamics in our industry are no different than in any other industry. It's just that the only thing the press does here is look around inside the industry, and at the rumors. But that's not where the story is. The story is outside the industry – where the technology from this industry is being used. And that's why Wall Street doesn't respect us. What the press should be doing is what Jay's doing."

While this story is in the context of the EDA (Electronic Design Automation) industry, you could substitute "CAD" for "EDA," and it would be just as valid -- both about Jay, and about the CAD industry.

I don't think anything I could say could add to the simple eloquence of Peggy's story... other than to say that I'm going to go out to the SolidWorks World off-site event right now, and talk to some of SolidWorks' executives... and some of its customers.