On Merchant Silicon and Mowing My Yard
Recently there was a quick write-up by one of my favorite competitors in the switching market arguing against my assertion that ‘merchant silicon’ is essentially ‘not a good thing’ in the switching space. Let me clarify…
Maybe an analogy will help. If a switch is like a car then the switching silicon would be most analogous to the engine and/or transmission. i.e. the core of the car and a major point of competitive advantage and differentiation. Do major automobile manufacturers outsource engine design and development to other firms? Of course not, they design and build their engines. Do manufacturers of more consumer goods like lawn mowers outsource their engines? Absolutely, they go to specialized engine manufacturers because the core value of what they offer is either a certain price point, or the value is not tied to the engine.
So the question then - is do you want to ride to work or school in a car, or on a lawnmower? I know one would get me laughed at if I was in school, the other… not so much ![]()
Applying it back to switching, I’d rather control my own destiny and align the core value creation in the silicon with the hardware and then with the software and continue to drive innovation at every tier and not saddle up on my Toro in my enterprise. (no offense to the manufacturer of lawn mowers, I am a good customer of yours too ![]()
dg
Posted by Douglas Gourlay at 02:10PM PST


Ori Mar 6, 2008
The question is whether building your own engine results in a 1990’s minivan while taking the best engineered engine helps you build a 2008 Ferrari.
See an article discussing how 3 of the top sports cars in the world Ferrari 430 Scuderia, Alfa Romeo 8C Competizione and Maserati GranTurismo all share the same V8 engine with some modifications.
http://www.edmunds.com/insideline/do/Features/articleId=124035
When you choose the best, you enjoy the best engineering out there.