Most EDA tools is that they were created with one customer in mind and adapted (patched) over and over to make it usefule to others. As explained to me many times, every EDA company was targeting only 10-15 customers 10 years ago. Due to consolidation, that number is now 5 -10 customers. Many of the tool users are overseas in countries that do not follow international patent laws and will not pay full price for EDA tools. EDA companies, rather than try to create new markets, are constantly working to steal market share AND budget share from a shrinking pool of customers. The financial gains seen in EDA over the past five years are negated by the falling dollar in Europe and Asia, so there is no growth. The EDA industry is constantly reducing marketing efforts and throwing what remaining money is left into shrinking trade shows that charge higher and higher fees.

EDA, from the financial side, is a shrinking market, with questionable valuations, facing increasing development and economic pressures worldwide, with flat revenues now in in the foreseeable future, little third-party scrutiny (i.e. press) and an aging management, all chasing shrinking budgets.

Technology, corporate culture and product overlap are all microeconomics. The macroeconomics are scary.