To: Sam Salomon who wrote (2445 ) 9/3/2002 11:00:34 AM From: Eric L Read Replies (1) | Respond to re: The IP Business Model (ARM, Qualcomm, Rambus) "Arm: The 'Nice' Gorilla" , by Francis Turner.rtwreport.com The ARM Market and Business Model ARM operates and the business model it has chosen to use. ARM is a pure intellectual property (IP) company selling the rights to its designs and the know-how to use them. Its customers are the various ASIC and chip manufacturers and designers of the world. Despite the fact that it builds relationships with potential customers of its own customers and with others who will write applications for chips containing its IP, it only receives revenue from the designers and manufacturers who use its cores and other technologies.Qualcomm and Rambus . Qualcomm's CDMA technologies are considered technically superior to other proposed standards, but even ignoring its direct customers (the cellular equipment manufacturers) it has managed to annoy many of the companies that it is targeting. These industries prefer to proceed through committees and consider a single supplier as an anathema. Rambus is perceived as being even worse as its customers believe that it has attempted to hijack the industry standards process. It also appears to have concentrated its sweet-talking on its customers' customers and their other suppliers. Although I suspect that Rambus is, at worst, guilty of 'Suppressi veri' and 'Suggestio falsi', the perceived deception has not contributed to a harmonious relationship between the vendor and the companies that should be its customers. <<
