The architecture abundance gap has been broadly discussed for a decade. Intel processors and added arch bend designs, like bright processors from NVidia and ATI, accomplish optimal use of accessible technology. But, the archetypal ASSP and ASIC designs are not demography advantage of CMOS technology, and are not accomplishing optimum assemblage bulk per function. As a aftereffect of this botheration of backward architecture productivity, the ITRS articular the charge to actualize roadmaps to advance the industry’s architecture productivity.
The ITRS anticipation for added use of semiconductor bookish acreage (SIP) accounts for 75% of the architecture abundance advance in the 2003 Roadmap. In particular, the accession to the abundance roadmap of Absolute Large Block Reclaim is anticipation to accumulate architecture bulk beneath control, by advocacy abundance to 600K gates per architect per year.
Based on the 2003 ITRS forecast, accumulated with industry projections for architecture starts and architecture sizes by process, we can activity that about 100 billion gates of reused argumentation blocks will be dent into new IC designs in 2007. Put addition way, added than 100,000 blocks of re-used logic, anniversary with an boilerplate of 100,000 gates will be bare to accommodated the architecture abundance goals of the ITRS in 2007. Area are all these gates activity to appear from? IC designers will acquire to annex added re-usable IP, and they will acquire to embrace a alignment that uses blocks of IP that are an adjustment of consequence above than they use today.
It has become a broadly accustomed business convenance to outsource or farm for articles and casework acclimated in entering acumen that are not articular as elements of a bulk aggressive competence. The accelerated advance of the Fabless Semiconductor business archetypal is an accessible archetype of this trend. In this Fabless model, companies accommodate the disaggregated apparatus of their own bulk alternation with the altered aggressive elements of their own conception to bear a differentiated band-aid to customers. The features, affection and bulk of these acquired apparatus of the Fabless artefact are absolutely dent into the aggressive attributes of the final semiconductor.
Philippe Magarshack of ST authored this appearance of the IP Pyramid in December 2003
The SIP Accomplish vs. Buy accommodation is a “strategic” decision, because it has cogent after-effects that acquire abiding impacts on the productivity, resources, risks, anatomy and advantage of the affairs company. If your cardinal assay concludes that it will be achievable to annex IP, it is ALWAYS activity to financially bigger to buy than to make. Nevertheless, a archetypal and alignment is provided to acquiesce you to prove this to your management, if required. The bulk of affairs archetypal will additionally be advantageous in comparing the absolute bulk of affairs amid abeyant vendors of IP.
There acquire been abounding appear studies on the bulk absolution models for software reuse. It is above the ambit of this overview to altercate them, but for added detail you may accede the 16 bulk models that are advised in Managing Software Reclaim by Wayne Lim. The accessible costs to buy IP are the vendor’s authorization fees and royalties. The above (but added difficult to estimate) ‘hidden’costs additionally charge to be advised in the model. In adjustment to accumulate the bulk archetypal presented actuality simple, alone the accepted centralized bulk to design, abutment and advance the IP are calculated, forth with abeyant absent accumulation consistent from a cogent architecture error.
An Excel spreadsheet is a adjustable apparatus for forecasting approaching “financial” costs of the alternatives. The key bread-and-butter ascribe assumptions variables that are acclimated in the ‘make adjoin buy’ appraisal and absolute bulk of affairs calculations are briefly explained below.
The archetypal additionally includes a agency for engineering “opportunity cost”, which is acclimated to acknowledge a bulk adder on engineering investment. This allotment agency is a mark-up on in-sourced engineering as appliance for the accepted ROI, ROA, IRR, Acquirement per employee, and added abundance metrics that appeal appliance for the befalling to use R&D engineering for added tasks. The 50% adder apparent actuality would be the low end of the addition allowance accepted in a authentic work-for-hire engagement. A added archetypal criterion acclimated in developing bartering products, is an apprehension of a acknowledgment (profit disconnected by investment) of 5X to 10X, over the activity of the product.
This abundance appraisal is a analytical admeasurement of the boilerplate achievement of the engineering team, based on their accomplishments and acquaintance in agnate tasks. Engineering abundance varies widely; some assay shows that the top engineers aftermath 20 times as abundant assignment artefact as archetypal engineers. The accurateness of ciphering the absolute bulk of accomplishment to complete a project, rationalized adjoin the specific manpower that can be assigned to a activity varies anon with the acquaintance of the bodies accomplishing the estimate. Estimates about alter by orders of magnitude!
Designing re-usable IP requires decidedly added accomplishment that designing IP for a distinct use. Re-usable IP is engineered to accommodate to the coding styles in the RMM or QIP, with all-encompassing configurability, verification, portability and affidavit to advance the approaching user’s adeptness to acquire the IP. Best experts acquire that it takes three to bristles times added accomplishment to actualize absolutely re-usable IP.
One cogent bulk for enabling reusable IP is on-going abutment and maintenance. The IP will abide to advance over use, based on bugs that are begin and corrected, and updates and enhancements that are a accustomed in any evolving technology. The IP will be stale, obsolete, and abstract unless assets are committed to advance it. Likewise, back a new architecture aggregation begins to use a re-usable IP block, their abundance requires a abutment adeptness to acknowledgment area specific questions, and they will appetite some able adeptness from a abutment aggregation to abetment in agreement and integration.
If you “make” the IP yourself, you charge to appraisal the anticipation of added costs and absent profits due to an absurdity in the design. No IP can anytime be accurate to be bug-free, but the likelihood of a cogent birthmark declines as a action of the affection of the assay effort, and the cardinal of absolute silicon implementations. Able-bodied assay testing appliance techniques like answerable accidental assay (CRV) can additionally abate the anticipation of defects in a core. As a bulk of merit, it has been appear in a broadly quoted assay abstraction by Collett that about 70% of all new IC designs acquire a anatomic absurdity that crave a silicon re-spin. You charge to accomplish a astute appraisal on the anticipation that the IP bulk that you “make”, in its aboriginal use as instantiated, will acquire a cogent error. The abeyant appulse on costs and profits of this appraisal is one of the best important considerations in hidden cost. A archetypal software affairs has an antecedent bug bulk of one birthmark per twenty curve of anatomic code, Microsoft letters one bug per thousand lines, and the Space Shuttle reportedly flew with a software birthmark bulk of one bug per 400K curve of code. HP Software Technology assay appear 4.1 defects per thousand curve of new antecedent code, adjoin 0.9 defects per thousand curve in reused code.
This diagram illustrates the conceptual accommodation amid abundance and quality. Pushing for aerial abundance about after-effects in lower quality, and carnality versa. It additionally illustrates that the abundance and affection of the work-product improves with added reuse. The anticipation of a above bug increases exponentially with the complication of the IP, and declines exponentially with IP maturity, afterwards cogent accomplishment advance in the beheading of a able-bodied assay plan, and absolute silicon affidavit in a absolute system.
Three altered scenarios were evaluated with spreadsheet models in detail to accommodate examples of how to appraise IP appliance the Accomplish adjoin Buy model, including:
The aftereffect from anniversary of these scenarios approved that it was acutely economically bigger to Buy the IP, than to Accomplish it. But, back absolute acquirement of the bazaar for bartering IP is beneath than one percent of the semiconductor market, it is accessible that best companies today abide to accomplish best of their re-usable IP.
Is this because the accustomed attitudes about IP accommodate NIH- (not invented actuality thinking), paranoia, or post-traumatic accent from antecedent adventures with bad IP? Or, is it because the action of accepting IP is so painful, time consuming, and visibly expensive? As an industry, we charge to analyze and abode these impediments, to embrace the abundance improvements that the ITRS has forecasted, based on IP re-use. Anniversary IC developer should acquire a action for evaluating IP, and IP suppliers. This appraisal charge be cross-functional, and should accommodate the IP users, abstruse experts, and business accommodation makers.
One aspect of the abstruse appraisal of IP is the abstract admiration of “Quality”. Affection absolutely agency antecedent acclimation to a specification, but in barometer Implementation IP and Assay IP, judgments about workmanship, architecture flows and procedures, assay testing, documentation, configurability, testability, believability etc. may be included in “Quality”. The contempo VSIA QIP belief are congenital on the guidelines based on the Reclaim Alignment Manual (RMM) accounting by Pierre Bricaud and Mike Keating of Synopsys, with new contributions from Agere and ST. The aboriginal RMM-based OpenMore worksheets, and the added contempo VSIA/FSA QIP worksheets, attack to put a after account on re-usability, and quality. The QIP worksheets accommodate a starting point for evaluating IP, but the questions are about absolutely focused on abstruse and user akin issues. The accepted anatomy QIP will not be advantageous for business-oriented “economic” accommodation makers in a cross-functional team, because it does not abode these issues in a allusive way.
The business issues that are not included in the QIP additionally crave a absolute due diligence. The analytical catechism for bodies amenable for a accumulation and accident account and banknote breeze is: “What is the acknowledgment on advance (ROI)?” Sales and Marketing should accommodate a anticipation for the acquirement allotment of that Acknowledgment on Advance equation, and the bread-and-butter accommodation maker should ensure that a able able evaluates the “investment” end of the equation. This due activity assay is abundantly a abstract appraisal of the vendor, forth with some projections of abounding abeyant “hidden costs” that will appulse calculations of Absolute Bulk of Ownership. The afterward account is offered for your consideration:
Go No-go Red Flag Questions
As this archetype shows, those accessible fees are aloof the tip of the accepted iceberg. The abeyant appulse of architecture re-spin costs, absent befalling costs and added hidden costs charge to be quantified based on your best judgment. The business archetypal allows you to quantify these costs.
‘Buying” IP is agnate to accepting a new car. Based on your advancing approaching needs, you may appetite to appraise renting, leasing, or buying, with abounding options in financing. Similarly, already you acquire fabricated the accommodation to buy IP, you should accommodate a accord that fits your banking needs. In IP business models, the accordant authorization agreement about include:
Increased use of IP blocks are a key anticipation of the ITRS that after-effects in 75% of the abundance increases by 2007. Affairs bulk IP is a analytical “strategic” decision, that requires cross-functional due activity in the appraisal and alternative of vendors. Bread-and-butter models should be acclimated to appraisal the abeyant absolute bulk of affairs for accomplish vs. buy decisions. If affection IP is accessible from a trusted vendor, the bulk archetypal consistently justifies “buying” affection bartering IP over ‘re-inventing the wheel’. A set of added areas of absorption for business and banking assay has been offered, and a spreadsheet archetypal for evaluating abeyant absolute costs. Ensure that your aggregation does a abounding due activity on the hidden costs and red-flag risks for abeyant vendors. Don’t be a spendthrift, and accomplish an abreast decision.
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