Dean Takahashi, a regular contributor to VentureBeat.com, posted yesterday a very interesting article over at the Industry Standard regarding Montalvo Systems failure and what it might mean for future x86 startups. We wrote about Sun’s acquisition of Montalvo Systems a couple of months ago, highlighting the more than $70 million dollars that the company was able to raise and the rather paltry sum for which it was eventually acquired. Dean’s postmortem gives us a concise history about how Memory Logix evolved from their initial synthesizable cores charter to eventually become Montalvo. We get a good look at some of the major players behind Montalvo including Vinod Dham, the co-founding partner of New Path Ventures, Mike Yamamura, Greg Favor, Peter Glaskowsky, Laurent Moll, and of course Peter Song who started Memory Logix.

It seems that from the start Montalvo had a hard time deciding on what to build. Ideas contemplated were: a processor incorporating a graphics chip, a partial x86 compatible chip only capable of running Linux, a non-x86 cell phone chip, and finally a four-core chip with asymmetric cores for the mobile space. The last one, being quite different from what AMD and Intel offered at that time, was probably what allowed the company to obtain the initial round of venture capital funding between the years of 2004 to 2006. However, it seems that around 2007 things started falling apart. The company was expanding rapidly and burning through cash very quickly while at the same time falling behind schedule. An interesting observation that Dean makes is that Bangalore, where the company hired a lot of talent, become such a hot area of recruitment that even there engineers were no longer cheap, further not helping the company. Soon, the company dropped the asymmetric core idea and decider on a simpler core with four identical cores. This might have been the major strategic mistake that the company made. Suddenly, the chip became indistinguishable from what the big guys would offer over the next few years. On the performance side it would have to compete against Intel’s latest Core 2 Duo processor while on the power side the recently introduced Intel Atom would have surely become a nail in Montalvo’s coffin.

Interestingly, Dean reveals that several investors were nevertheless willing to throw another $150 million dollars at the company to let them finish the initial chip and maybe a second version after that, but one of the major investors advised against it. Too bad in a way, since it would have been really interesting to see what the Montalvo team could have delivered – some small teams are capable or extraordinary achievement. On the business side of things, the lesson to be learned here is that when market conditions change, the product has to be modified to address the new circumstances, but one has to be really careful not to change it such that it looses the uniqueness and with it any advantage or niche that it was targeting.  Sun Tzu said that good warriors prevailed when it was easy to prevail because they knew themselves and properly assessed the situation, thus positioning themselves on ground where they would surely win. Montalvo on the other hand had a identity crisis right from the beginning, followed by poor product positioning in the end, thus severely diminishing any chances of victory that the company might have had – which explains why the money eventually dried up.
Ironically, just the other day Montalvo was granted its first patent, according to Peter Glaskowsky, titled Adaptive Computing Ensemble Microprocessor Architecture. Of course, given the recent acquisition of the company, the patent assignee is now Sun Microsystems.

There have been relatively few posts to ChipCrunch.com over the last few weeks, but do not worry, a lot of work has been happening on the backend. First, the site was moved to a new server in order to enable php5 support. And while conceptually this ought to be a rather simple process, in reality nothing is every this simple. Several parts of the site experienced minor issues after the move that needed some time to be worked out. While working on them, we also fixed a few bugs related to article commenting, cross-browser image alignment, and the mobile version of this site. We also upgraded most of the third party components that we utilize to their most recent versions, which of course took some work as well. Finally, we added social-bookmarking for each of our posts so that you can easily bookmark and share them utilizing whichever service you prefer. Hopefully, you will find this new functionality useful. Should you encounter any issues with it or with any of the other upgrades, please let us know immediately so that we can address them. Anyhow, once all the backend work was mostly done, it was high time for a vacation. A real vacation is a vacation sans laptop, which explains the lack of updates recently, but now that I’m back updates will start appearing at the regular pace.

Many individuals dream of working for a startup and striking it rich, but never seem to find the right opportunity for which they would be willing to leave the security of their current employer. On the other side of the spectrum are startups, which might have great ideas, but whether by choice or not, are little known and struggle in finding the right talent. For these individuals and startups, the major job-sites usually return less than satisfying results: Finding startups on these sites is not easy, and similarly the quantity of resumes received by startups is likely to trump the quality of the applicants. A few months ago we profiled VentureLoop.com, which by now has amassed over 5000 jobs from about 700 venture-backed companies. VentureLoop’s strength comes from having many of the top venture capital firms as their clients, thus gaining access to jobs at startups that might not be available elsewhere.

Now, VentureLoop has a new competitor in town, namely StartupAgents.com. The brain child of Lee Diamond, StartupAgents intends to bring startups and agents, meaning individuals interested in working for startups, together with a social networking twist. Think of StartupAgents, as a LinkedIn with a startup focus and a few extra features. As usual, after registering, one has the option of setting up a profile similar to most social networking sites. All the basics are there such as location, experience, education, languages, etc. A more interesting feature is the inclusion of a video resume in the profile if you choose to do so. I suppose, many people will shy away from this, but a few confident and creative individuals might use this to set themselves apart from others. Of course, weather startups looking for talent will watch these videos is an entirely different matter. Another interesting profile section is the work-preferences which in addition to selecting positions of interest and sectors of interest also enables you to specify top values such as innovation, integrity, etc. Finally, connections, rather than friends or acquaintances, are intended to be people with whom you would want to work in the future. The idea being, that startups ought to be able to utilize these connections to hire entire teams of people that want to work together in the first place, thus quickly creating harmonious and efficient teams – If you’ve ever worked on a team where not all members are looking in the same direction, you know exactly how important this is.

Before you get too excited, there are some reasons that StartupAgens is still in beta. First of all, you have to get past the registration. No, I’m not insulating your intelligence by doubting you will get past the mathematical captcha authentication. It simply might be the case that the registration server will not like your email address. I had to try three different addresses before I finally obtained a registration email! Another major limitation is that at this point only startups are allowed to search for talent, and not the other way around. Reverse functionality is promised in future releases, but for now all you can do is setup your profile, invite friends, and then wait. Maybe, StartupAgents is waiting to sign-up enough startups so that there is actually something worth searching through. All in all though, the interface is clean and user friendly, and if you are looking for a startup gig setting up a profile will most likely not hurt your chances.