Cheap, Cheap

Two weeks ago, I attended a conference, EELive 2014. Last fall I decided I should pursue some exposure to increase my network in hope of finding new clients. I google searched embedded systems conference and found one called exactly that, ESC. I submitted a proposal to present and they accepted. They also changed the name to EELive. ESC was still embedded, pardon the pun, in the conference as a track.

So I attended for  four days handing out business cards and doing my best to schmooze. And, I presented a case study of my COFDM transceiver work. I was second to the last session of the conference, to a couple of dozen die hards. Did I achieve some exposure? I hope so but I also made a few observations about the industry in which I currently participate and that may prove more useful than I had planned. I started writing a post with some of those observations in a somewhat random order and now that it has grown too large for one I will break it up into a week or more shorter posts. Here is the first.

My first observation; hardware is cheap. I have been to conferences before and I have had a closet full of backpacks, water bottles and logo’d footballs. But this time I brought home 3, could have been more, very capable hardware development kits as free SWAG. One is a low power bluetooth dongle, another is a near field communications kit complete with fairly good sized color LCD screen and the third is a very capable 32 bit micro ala Raspberry Pi. I was convinced I had really scored some valuable stuff until I discovered what they all cost at their manufacturer’s website. I had been reading about the Arduino and Raspberry Pi phenomena but I did not realize that these were just the most publicized of a whole catalogue of cheap, very powerful, development platforms.

Is software still cheap? Software engineers have generally earned less than hardware engineers and I think that is still true. However, everything is now full of software code. So although a hundred lines of software code may still be cheaper to develop than a few hundred ASIC gates, there is a lot more code demand than gates. The gates market seems to be saturated while the code market is still hungry. And, the software cost required to build a microprocessor based product far exceeds the hardware cost.

The real market is ideas. I don’t know how much a good idea is really worth or how much one costs to develop but Google and Facebook buy a good idea for about a billion dollars or more just about every week. The amount they pay far exceeds the hardware or the software cost. What they seem to be paying for is just the idea. And not just the idea itself but the popularity of the idea. So more specifically the real market seems to be a popular idea.

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