Rajvindra Gill
Good job on the momentum in the business. Georges, just wanted to quickly talk about your partnerships with all the MCU suppliers, the major ones, Renesas, NXPI and Microchip. You talked about that they're very crucial in enabling you to scale and add to your sales trajectory. I'm wondering if you could elaborate a little bit further on kind of what you're seeing each of those MCUs doing this year in terms of rolling out your technology and folding it into their MCU portfolio. You mentioned NXPI, for instance, but wanted to get a little bit more clarity on how those MCU companies are incorporating your cellular IoT in their IoT portfolio.
Georges Karam
Indeed, as I mentioned, this is really – since two years, we took this path by partnering with the MCU partner knowing that none of them has cellular and, obviously, we can be for them what ARM is for them on the MCU, providing the cellular technology. And our strategy with them, to be honest, is really to play fair play with all of them and not to have an exclusive relationship preventing us from working with the other guy and offering to every one of them the full potential from a deal which could be just only partnering on the marketing side, to go further in the tools and the development, to get an integrated product by resell, and even towards IP integration, if this makes sense for MCU. So, this portfolio, it's very transparently offered of options to all of them.
Now, obviously, each one of them has his own agenda, his own way of moving on cellular, the timeline, how critical it is, and I cannot elaborate more because everyone has really his own strategy and everyone has his NDA with me. So, I will keep it confidential, what I know about each one of them. But in general, all I could say, they are different. The way we are approaching with them, everyone is following a track which is different from the other, which is, to some extent, nicer for me because I see which one is more successful. And the public one, we know that today, NXP, they have now platform with us, which is not my resell. In other words, we are joining customers and offering a platform together. And they will sell and I will sell.
Renesas took the decision to integrate our products in their portfolio. So, they resell. Their team is completely engaged. They have pipeline which is controlled by them, not by me. And I have visibility on it. But obviously, it's their pipeline and they drive it the way they want.
Microchip has something maybe in the middle today. I cannot elaborate more because it's not public. So that's how it is.
So, I still believe that working with them is very helpful because all the IoT devices integrate MCU. And all of them, when they need cellular, they need an MCU in 80% of the cases. So, the relationship with the MCU vendor is crucial. But the way we take it to market, obviously, it remains specific to each one of them.
All that I can say today, Renesas is going to be direct revenue that we will be shipping to Renesas this year, and I will not say negligible number, but it's not really – it's the beginning of the relation. But we have hope that this will go much bigger next year and maybe will be two digit next year as soon as we go to next year based on the pipeline I see today.
And with others, as there is no buy/resell today, it remains minimum revenue, if you want, direct revenue, but, obviously, we have design win together that are integrated in my pipe when I talk about my pipe. |
