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In this series we have been discussing the challenges facing the microcontroller industry over the last few decades, and some of the steps taken by MCU companies to remain competitive in a market that is becoming more and more crowded. Recently a few MCU manufacturers (including TI) have turned to software as a secret weapon to win this war.
While software is certainly no stranger to the MCU industry, it has until recently been relegated to a support role for the MCU itself. For example, even though MCU compilers are sold as a separate product, they are intended to support the main money-making product, the MCU. Reference design software is often free, and again designed to support silicon sales. This subjugation is understandable considering that the MCU industry was born out of the silicon industry. At TI for example, 96% of our revenue comes from the sale of silicon based products. If that much of your revenue is linked to silicon, it is easy to develop a mindset that your product must therefore be silicon. I would argue that this is not true. In fact, I would argue that most companies today don’t understand the true nature of their product. For example, if I were to ask you “what is your product?” what would you say? I suppose you might respond by telling me what you manufacture. But your real product is not what you manufacture, but what you sell.
(Are you confused yet?)
Simply put, your customer is buying a lot more from you than what you manufacture. They are buying your reputation, your support, and most importantly, the unique set of skills, creativity, and IP brought to bear which breathes life into what you manufacture, thus making it unique. So if you accept that definition, should MCU companies consider their product to be “fancy sand”, or something far far more? At the last semiconductor company I worked for, I made the statement that “any MCU company who still thinks their product is silicon will be out of business within a decade”. Needless to say, I wasn't the popular kid on campus anymore. Despite being harsh and perhaps mildly overstated, this statement makes my point exactly. I still believe the industry as a whole needs to embrace a broader mindset that silicon is just part of their product; and in many cases, just the wrapper for their product.
Which brings me back to software. I believe that the surviving MCU companies of the next decade will recognize and embrace the importance of software as part of their product portfolio. I am glad that TI management understands this very well, and is aggressively instituting this concept with products like InstaSPIN-FOCTM. For those of you who are unfamiliar with InstaSPIN-FOC, it is a powerful sensorless field oriented control algorithm used in motor control applications which is instantiated in ROM on select C2000 based products. It’s a win-win proposition that solves an industry problem for our customers at a fraction of the cost it would take them to develop a comparable solution. PLUS it allows TI to field a value-added non-commodity solution to the market. You can find more information about InstaSPIN-FOC here. Of course, embracing software as a product instead of a support mechanism comes with a unique set of challenges that require MCU manufacturers to change how they do business. Here are a few examples…
1. You can’t please all the people all the time. This statement is doubly true when it comes to software. Most engineers agree that C should be the language of choice for embedded software, but that’s pretty much where the agreement ends. For InstaSPIN-FOC, TI has made a conscious decision to embrace an object-oriented approach which is documented in a 487 page User’s Manual. The code that interfaces with InstaSPIN-FOC is contained in MotorWareTM, which is TI’s new suite of software modules which adhere to our object-oriented coding standard. But despite our best attempts to make MotorWare as easy to use as possible, we still get complaints that our software is too complicated, or is too structured, or ________(fill in the blank). We recognize the challenge that this presents, and are continuously updating our training strategies and documentation in an effort to make our software easier to use.
2. Some customers don’t trust the “black-box” approach. As one who has a hard time trusting software tools and plug-in libraries, I can identify with this concern. This has come up from time to time with InstaSPIN-FOC, but the number of instances I personally know of where we couldn't resolve this problem can be counted on one hand. In many cases we can diffuse this issue by pointing out that if they are using our API libraries or IQ math routines (which are in ROM), then they have already been using a black-box approach.
This also means that whatever portions of your algorithm you chose to put in ROM must absolutely be tested through and through, because bugs in ROM code just confirm the black-box fears. So far we have been very pleased with how robust and error-free the InstaSPIN-FOC ROM code has been.
3. Some customers feel threatened by this approach. When I sat down after delivering this speech in Milwaukee, I was immediately approached by an engineer who worked for a drives company who expressed this exact sentiment. These customers typically fall into one of two categories:
a. Engineers who feel you are doing THEIR job. These are mostly software engineers responsible for writing the product code itself. This can be a real problem, especially if their concerns are legitimate. The last thing you want to do is alienate the very customers you are trying to help! With InstaSPIN-FOC, engineers need to realize that it is NOT a complete motor drive solution. Each module is designed to make your job easier, not replaceable. Also, the structure of these modules is designed to allow you to use just as much or as little of the functionality as you want.
b. Companies who worry that you are entering THEIR market. For the case of TI and InstaSPIN-FOC, this is very easy to address. I can unequivocally state that TI has no intention to enter the motor drives business. We don’t have the expertise to navigate the complexities of this market, and would just as soon leave that to you, our customers. We are content to offer pieces of the motor drive solution, but let our customers put them together.
4. Marketing Approach. MCU suppliers will need to be more flexible and adaptive with their marketing strategies. For example, we have seen that certain segments of the market (like appliances, automotive, medical, hobby, etc.) have embraced InstaSPIN-FOC much more enthusiastically than we could have ever imagined! But conversely, there has been less interest than expected from other segments, such as Industrial Drives. This actually makes sense when you think about it. The motor drives industry has already invested years of R&D to develop their own proprietary sensorless observers that are perhaps as good as (or maybe even better than) InstaSPIN-FOC in some cases. So we have had to adapt our marketing tactics to serve our customers when and where it makes the most sense.
5. Applications Support. Finally, we have had to shift our applications support model from one that was almost exclusively silicon oriented, to one which also includes end application and software expertise. This doesn't mean that we are reducing our hardware support capabilities, but it does mean that more software resources are being added.
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In conclusion, will MCUs go the way of DRAMS? How do we as an industry keep from being sucked into the commodity black hole?
Should we continue to improve our fab processes? Of course!
Should we integrate more peripherals? Absolutely!
Should we continue to make our peripherals more powerful? Again, the answer is yes. But I am concerned that these actions alone do not represent a sustainable competitive strategy. Unless we as an industry take bold steps to change how we perceive our products, I fear that we are in constant danger of becoming commoditized.
TI has shown the way for MCU manufacturers to remain relevant in this highly competitive market by providing high value-added solutions to our customers in the form of applications software running on powerful, control-oriented cores.
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