Over time tool vendors will expand their product offerings to provide standard

Over time tool vendors will expand their product

This preview shows page 268 - 270 out of 300 pages.

ess as the tool vendors ramp their capabilities. Over time, tool vendors will expand their product offerings to provide standard automated test suites for compliance testing. Benefits of Early Adoption A key benefit to early adoption is to be first to market with a product. In some markets, such as PC graphics, companies gain market share and higher average selling prices for delivering cutting edge products. In these markets, the ability to repeatedly roll out the latest technology leads to revenue growth as users are willing to pay for the experience. As average selling prices face rapid erosion due to multiple suppliers enter- ing the market, being first reduces a company s exposure to average sell- ing price erosion. For the intellectual property provider market, first to market is critical for providing key intellectual property building blocks and establishing brand recognition. Another benefit is being further down the learning curve. Some technology transitions are inevitable and PCI Express is expected to be one of them due to the wide market segment support and unique bene- fits covered in Chapter 4. A benefit to adopting earlier versus later is that companies are in a position to optimize prior to the market growing to
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Chapter 13: PCI Express Timetable 269 large volumes. For example, if a component supplier elects to wait in- stead of developing an early PCI Express device, that component supplier may be faced with a competitor who is further along in development. The competitor may have gained practical knowledge from the early stages of development towards cost optimization. As the market enters heavy competition, the supplier who took advantage of this practical knowledge would potentially be able to gain market share and profit over the supplier late to production who is still working through bugs and de- fects. The learning curve also applies to market understanding in addition to design optimization. Another scenario would be that the early adopter has a better understanding of how to make the best trade-offs. For exam- ple, the market may place a premium of performance over power con- sumption. Through initial implementations and direct customer feedback, the early adopter would be armed with the information to op- timize for performance over power. Direct customer engagement and experience can make the difference in several markets. Through bringing initial products to market, companies develop a good understanding of the market and can ensure follow on product success. Technology transitions are a unique opportunity when the barrier to entry for a market is lower than normal and provide a benefit to emerg- ing companies. A company may elect to enter a market as an early adopter. With a technology or time to market advantage, a company may be able to win key designs if the competitors are slow to adopt. In a sta- ble market without the technology disruption, entrenched players with a strong customer base make it difficult to enter a particular market seg- ment.
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