TPACK's business concept is based on licensing of SOFTSILICON and SOFTSYSTEM solutions to Telecom Equipment Manufacturers.

TPACK's business concept is based on licensing of embedded software solutions to Telecom Equipment Manufacturers. This includes software used to programme and re-programme Field Programmable Gate Array (FPGA) chips in SOFTSILICON solutions, as well as additional application and management software comprising SOFTSYSTEM solutions. See SOFTSILICON and SOFTSYSTEM for more information.

SOFTSILICON Model

In the SOFTSILICON model, a standard chip product is offered similar to merchant chips such as Application Specific Standard Products (ASSPs). The chip feature set is pre-defined with some configuration options available. The product is updated regularly with new features to keep up with market developments. Because the product is based on FPGAs, the updates can be developed and delivered faster and more often than is possible using a typical semiconductor chip approach.

The business model for SOFTSILICON is based on a per-unit fee only for a bundled delivery of FPGA, image software (which implements the functionality) and driver software for ease of integration. A support and maintenance fee provides access to updates, while other support, training or adaptation services are charged separately.

SOFTSYSTEM Model

The SOFTSYSTEM concept provides customers with full freedom in defining the customizations and adaptations required based on a reference design, which can be a SOFTSILICON product.

Similar to software licensing agreements, TPACK's SOFTSYSTEM business model is based on:

• A royalty per unit sold fee (whether that is a system, linecard or chip)
• An upfront fee (to cover any adaptations, customisations or other assistance)
• A support and maintenance fee (for bug fixes etc.)

The levels of each depends on the particular case, the extent of customisation desired and the particular application. Design-in support and training are included with the upfront fee.