Software AND Silicon – Opportunities for India IT Ministry, Delhi April 25, 2003 S Sadagopan,

S Sadagopan 2 Overview Myths & Realities Indian Software Industry Maturity of Software Production The hardware “bugbear” Embedded Systems are “hot” Electronics beyond Entertainment Design Chain Summary

S Sadagopan 3 Myths & Realities Myth 1: India is software superpower; China is hardware superpower Reality: Both of us are contractors to Superpowers USA & Japan

S Sadagopan 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!

S Sadagopan 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”

S Sadagopan 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,

S Sadagopan 7 Myths & Realities Myth 5: No “hi-tech” hardware / software product design is done by Indian IT companies Reality: MBIL 3 rd global optical disk manufacturer; VXL Instruments 3 rd 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;

S Sadagopan 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

S Sadagopan 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

S Sadagopan 10 Maturity of Software Production Software for self (ALGOL, FORTRAN); fellow – professionals (FORTAN Libraries, IMSL); others and for everyone on earth Function, Proc’s, Libraries, Objects, Classes, MFC, JFC Components, Foundation Classes, Frameworks Area-specific – Matlab / Mathematica Domain-specific – J2EE /.NET More software with less software engineers

S Sadagopan 11 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

S Sadagopan 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

S Sadagopan 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!)

S Sadagopan 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

S Sadagopan 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”

S Sadagopan 16 My limited view of tomorrow’s 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)

S Sadagopan 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!

S Sadagopan 18 Thanks a lot ?