Software AND Silicon Opportunities for India

1
Software AND Silicon Opportunities for India

• IT Ministry, Delhi
• April 25, 2003
• S Sadagopan, ss_at_iiitb.ac.in

2
Overview

• Myths Realities
• Indian Software Industry
• Maturity of Software Production
• The hardware bugbear
• Embedded Systems are hot
• Electronics beyond Entertainment
• Design Chain
• Summary

3
Myths Realities

• Myth 1 India is software superpower China is
  hardware superpower
• Reality Both of us are contractors to
  Superpowers USA Japan

4
Myths Realities

• Myth 2 China has taken away the manufacturing
  cake we can do nothing about it
• Reality The value in manufacturing is not
  production alone!

5
Myths Realities

• Myth 3 Indian companies do only software
  services they just do not understand products
• Reality Pramati studio/server Top 10 in
  Middleware
• i-Flex product is Top 3 for three years in a row
  (2000, 2001, 2002) Ramco Marshal runs factories
  that power the time keeping nation

6
Myths Realities

• Myth 4 No high tech hardware product design
  happens in India
• Reality Philips DVD video codec Apple iPod
  audio codec TI OMAP Microsoft J Adobe Reader
  for Palm iPaq Intel start-up utility Cisco
  IOS core components hp-ux, OpenView kernel
  Oracle Pro c components,

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Myths Realities

• Myth 5 No hi-tech hardware / software product
  design is done by Indian IT companies
• Reality MBIL 3rd global optical disk
  manufacturer VXL Instruments 3rd global terminal
  manufacturer HiCal supplies magnetics for global
  No 1 mobile handset manufacturer ImpulseSoft
  possibly the first global Bluetooth wireless
  earphone Manmar imaging software for Ultrasound
  scanners Purple Vision signal processor

8
Myths Realities

• Myth 6 The productivity of Indian IT industry is
  low IBM with 45,000 developers has 20 Billion
  annual revenue TCS, Infosys, Wipro together with
  45,000 developers has 2 Billion!
• Reality Rupee Dollar imbalance accounting
  problem headcount problem

9
Indian Software Industry

• Started as low cost established as high
  quality emerging as high value
• Respected globally decent yet small 10 Billion
• Companies like Infosys are present in MIT
  Harvard
• Created a million direct jobs indirectly 2-3
  Million jobs
• Brought practically most of the Top Tier IT
  Companies to India (through IDC) TI, Motorola,
  Intel, HP, IBM, Microsoft, SAP, SONY, Samsung

10
Maturity of Software Production

• Software for self (ALGOL, FORTRAN) fellow
  professionals (FORTAN Libraries, IMSL) others
  and for everyone on earth
• Function, Procs, Libraries, Objects, Classes,
  MFC, JFC
• Components, Foundation Classes, Frameworks
• Area-specific Matlab / Mathematica
• Domain-specific J2EE / .NET
• More software with less software engineers

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Hardware Bugbear

• Software industry without microprocessor Fab?
• Software has never happened without hardware!
• Maturity of hardware production
• Hardware design manufacture de-coupling
• Fab-less, Chip-less companies too have a place
• Hardware design, Microelectronics competence
  comes of age in India

12
Embedded Systems are hot

• DSP Microprocessors are getting embedded all
  over
• IT inside Automobile Engine, transmission,
  navigation, entertainment, lighting, monitoring,
  Internet access Auto Bus, GPS, GIS
• IT in Healthcare Medical imaging equipment
  transformed thru Digitization, Patient embedding,
  Instrument embedding.
• Appliances Traditional White goods, Internet
  appliances, Camera, MP3 devices
• Shift to open standards use of commodity DSP /
  Microprocessors

13
Electronics beyond Entertainment

• Audio Video dominated electronics for long
• PDA, Mobile phone, multiple form factor PC
  (several hundreds of millions)
• Audi Video moving to digital changes the
  landscape (emergence of MP3 DVD devices)
• Mobile devices for office, field, health,
  security and knowledge workers will see dramatic
  growth (424 Million mobile phones alone!)

14
Emergence of Design Chain

• Design Tools, Libraries Big guys, small guys
  feeding the big guys
• Design Houses In House, Third Party
• Offerings services, IP driven services, IP
  licensing alone
• System Integrators
• Verification, Prototyping, Small sample
  production
• Real manufacture, Brand managers
• Similar to automotive industry today

15
What is missing in India

• Protective hand of Government (not the crushing
  hand) legal, fiscal, indirect
• Fast in out of atoms what STPI did for
  bits
• Help higher education directly (not through
  education departments) through competitive grants
  with more than utilization certificate as
  accountability

16
My limited view of tomorrows world

• Consuming economies (USA, Euro Europe, Japan)
• Moving / selling economies (Singapore, ASEAN)
• Producing economies (China, Korea, Taiwan,
  Malaysia)
• Designing economies (India China)
• Other economies (Middle East, Africa, non-Euro
  Europe)
• Vacationing Economies (Australia, New Zealand)

17
Summary

• Hardware Software divide will not stay for long
• Hardware design would need more software
  engineers (explains Intel having more software
  engineers today than Microsoft)
• It is no longer Hardware OR Software but only
  Hardware AND Software
• Similarly it is no longer India OR China but
  India AND China India China as a new IC!

18
Thanks a lot

• ?