Monthly Archives: May 2017

Today I was asked to complete an Autodesk Reseller Satisfaction survey, which I was happy to do. My reseller does a good job. There was also a question about satisfaction with Autodesk.

I’ve shamelessly stolen Autodesk’s question and used it in a poll here. Please only respond if you are or were an Autodesk customer.

Customers - how would you rate your overall satisfaction with Autodesk?

  • 0 - Very dissatisfied (39%, 69 Votes)
  • 1 (6%, 11 Votes)
  • 2 (12%, 22 Votes)
  • 3 (11%, 19 Votes)
  • 4 (5%, 9 Votes)
  • 5 (4%, 8 Votes)
  • 6 (6%, 11 Votes)
  • 7 (7%, 13 Votes)
  • 8 (3%, 6 Votes)
  • 9 (2%, 3 Votes)
  • 10 - Very satisfied (4%, 7 Votes)

Total Voters: 178

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I’ve added a similar poll about Autodesk resellers. Please only respond if you are or were a customer of Autodesk resellers.

Customers - how would you rate your overall satisfaction with your Autodesk reseller?

  • 0 - Very dissatisfied (10%, 12 Votes)
  • 1 (2%, 3 Votes)
  • 2 (6%, 7 Votes)
  • 3 (5%, 6 Votes)
  • 4 (2%, 2 Votes)
  • 5 (17%, 21 Votes)
  • 6 (5%, 6 Votes)
  • 7 (13%, 17 Votes)
  • 8 (21%, 26 Votes)
  • 9 (8%, 10 Votes)
  • 10 - Very satisfied (13%, 16 Votes)

Total Voters: 126

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Here’s one just for Autodesk resellers. Please only respond if you are or were an Autodesk reseller.

Resellers - how would you rate your overall satisfaction with Autodesk?

  • 0 - Very dissatisfied (40%, 22 Votes)
  • 1 (11%, 6 Votes)
  • 2 (9%, 5 Votes)
  • 3 (15%, 8 Votes)
  • 4 (5%, 3 Votes)
  • 5 (4%, 2 Votes)
  • 6 (0%, 0 Votes)
  • 7 (0%, 0 Votes)
  • 8 (9%, 5 Votes)
  • 9 (4%, 2 Votes)
  • 10 - Very satisfied (4%, 2 Votes)

Total Voters: 55

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Feel free to comment here if you wish to discuss the ratings you provided.

Maybe I should complete the set and do polls for Autodesk and its resellers to rate their customers?

Autodesk has released an update to fix the following AutoCAD 2018 problem:

Product users of version 2018 Autodesk single-user subscriptions may experience an intermittent crash. The crash occurs when it has been more than 24 hours since the last successful authorization check and there is intermittent or no internet connection, or the licensing authorization server is unavailable. The licensing authorization check occurs in the background and is completely unrelated to activities the user is performing at the time of the crash.
A fatal error message may be shown by the product. For example:

FATAL ERROR: Unhandled e06d7363h Exception at ee563c58h

 
Links:

Note that this crash only afflicts subscription (rental) single-user (standalone) customers. People with perpetual licenses don’t have to put up with the multiple additional points of failure caused by the subscription licensing system insisting on phoning home every 30 days. Yes, even if you pay for three years’ subscription up front, you’ll still need a working Internet connection every 30 days if you want to keep using the product.

At least, Autodesk has been saying it’s only once every 30 days (as if that wasn’t bad enough). The information provided with this hotfix tells a different story. What is the license server doing phoning home 24 hours after the last successful authorization check? Enquiring minds want to know.

No criticism of Autodesk is implied for providing this hotfix. As always, I commend Autodesk for fixing up problems as they arise. The basis of my criticism is the hotfix being necessary in the first place. It’s caused by Autodesk inflicting unnecessary complication on its customers for its own internal reasons. This one fails the “how does this benefit the customer?” test big-time.

The single-user subscription licensing mechanism has been a crock from day one, especially for CAD Managers of multiple users who have to deal with its onerous requirements. It’s an astonishingly poor design, very badly implemented. Even with this particular crash fixed, it’s still a crock.

ADSK celebrates two full years of losses

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Autodesk Reports Strong First Quarter Results, says the press release.

Autodesk co-CEO Amar Hanspal:

Broad-based strength across all subscription types and geographies led to another record quarter for total subscription additions and a fantastic start of the new fiscal year. Customers continue to embrace the subscription model, and we’re expanding our market opportunity with continued momentum of our cloud-based offerings, such as BIM 360 and Fusion 360.

 
Autodesk co-CEO Andrew Anagnost:

We’re executing well and making significant progress on our business model transition as evidenced by our first quarter results. We’re starting the year from a position of strength and are excited to kick off the next phase of our transition when we offer our maintenance customers a simple, cost effective path to product subscription starting next month.

Thanks to this fantastic progress into the exciting new customer-embraced rental-only business model, Autodesk has now recorded eight successive strong quarters of losses totalling $969 million. Another strong quarter like this one will see those losses exceed a billion dollars, and then it will really be time to crack open the champagne.

Here’s how those results look. Green shows profit; red shows loss. The black lines are trend lines. The thick one is linear, the thin one is a 4-quarter moving average.

Here’s an Adobe graph for comparison; it covers a wider date range. The linear trend line is not directly comparable because the Adobe graph includes a recovery phase which Autodesk has yet to enter.

Both graphs represent GAAP results that do not reflect deferred revenue (money that is received but not counted immediately). Autodesk is still making a loss in non-GAAP terms, but a smaller one than shown in the graph. Full details of Autodesk’s financials are available here. Make your own financial decisions based on your own interpretations and/or using the advice of parties better qualified than myself.

The big Bricsys interview 11 – free viewer?

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This is the final post in a series covering an extensive interview with Bricsys CEO Erik De Keyser and COO Mark Van Den Bergh. If you’ve made it through to the end of this series, congratulations! I hope you found it illuminating.

In this post, R.K. McSwain asks a question about a possible BricsCAD-based DWG viewer, which turns into a brainstorming session!

R.K.: Do you guys have a viewer? A read-only viewer? Is it something you’re looking to do?

Erik: No. BricsCAD classic costs, you know, $400.

Steve: Autodesk is giving one away anyway.

R.K.: They give it away, but you know what it is. It’s almost a 1 GB download, I was thinking as maybe a way to get people interested in BricsCAD? Here’s a viewer, I wonder what else it can do…

Mark: What? (disbelieving) The viewer is almost one gig?

Steve: It’s about 800 MB.

Erik: It’s a matter of choices and priorities.

Steve: It is a marketing opportunity. A viewer that’s easier to use, because you can download and install it within five minutes. And you could be providing them with basically BricsCAD with stuff disabled. You could even have a Buy Me button that un-disables that stuff.

Erik: Yeah, yeah!

Steve: This isn’t an interview now, it’s a product brainstorming session!

Erik/Mark: (laughs)

Mark: Let’s continue! Let’s continue! As you know, you can download our software and evaluate it for 30 days (and you can ask for an extension) but one of the options we’ve discussed is that after the 30 days it turns into a viewer.

Erik: Maybe we’ll do that.

R.K.: That gives them the 30 day window up front, even if they’re just looking for the viewer.

Erik: Yeah.

This is the complete set of links to this interview series:

The big Bricsys interview 10 – platforms

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This is one of a series of posts covering an extensive interview with Bricsys CEO Erik De Keyser and COO Mark Van Den Bergh.

In this post, R.K. McSwain asks about BricsCAD running on three different platforms. Erik explains why BricsCAD for Mac (and Linux) is so much more complete than AutoCAD for Mac, which has more holes than a block of Swiss cheese.

R.K.: Do all three platforms (Windows, Linux, Mac) contain the same functionality?

Erik: Yes. Sometimes it’s a bit hard with the Mac to bring it along but so far, so good. The only problem sometimes is in the APIs.

We are using wxWidgets and not the Microsoft classes. This gives us the ability, with the same source code more or less, to serve Mac, Linux and Windows. By far Windows is the most important one. By history, all the applications are on Windows, because AutoCAD was only Windows. What we have as APIs, and the most important ones are BRX and .NET. If you want to port an application to Mac, it means our API must support that as well. BRX is doing that for 90 to 95%; there are a couple of functions that only work on Windows. For most of the applications, they can port their application to Linux or the Mac without any problems.

Steve: And you support the Visual LISP COM functions as well, right?

Mark: Yes, we cover them and they are also available on Mac and Linux.

Steve: You have a solution there that Autodesk doesn’t, which gives us the strange situation that BricsCAD for Mac is more AutoCAD-compatible than AutoCAD for Mac.

R.K.: AutoCAD for Mac leaves a lot of holes.

Erik: That’s because they rewrote the whole interface for Cocoa, and we didn’t. We are using one code base. You can be more Catholic than the Pope, yeah? If you rewrite AutoCAD completely for the Mac, the result is many holes, no applications possible, it doesn’t help anybody. We’re better off being pragmatic and doing it the way we did it.

Still, we must say that applications availability for Mac and Linux is not much. That has to do with 95% of our sales being on Windows. We expect that might change for BIM, because more architects are Mac users, partly because the first version of ArchiCAD was on Mac, Vectorworks is, so it’s really an Architect’s machine. We expect that maybe for BIM, it might change and we might sell more versions on the Mac.

Steve: Autodesk doesn’t have a competitor there, does it?

Erik: No, absolutely not.

Mark: I should mention that all of our keys are cross-platform. So when you buy a key, you can run them all. So every time you on decide to run on Mac and later on you decide to switch it to Windows, we don’t have any problem. You can switch whenever you want, from one to the other, on to Linux if you want.

Erik: Again, choice. It’s up to the users.

This is the complete set of links to this interview series:

The big Bricsys interview 9 – treading on developers

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This is one of a series of posts covering an extensive interview with Bricsys CEO Erik De Keyser and COO Mark Van Den Bergh. Erik explains that Bricsys won’t trample over its application partners in Autodesk-like fashion, except…

Steve: Autodesk is known for treading on its third-party developers and replacing their market. Can you tell us about your attitude to doing that?

Erik: We have always said that we are not stepping into any application market. We will not do it.

There’s only one exception, that’s where there is no [other] possibility. There was no sheet metal. There is no viable [third-party] DWG sheet metal product in the market today for sheet metal. Then we do it, of course.

For BIM, there are. There is a German product. We have talked to those guys, but the problem is, for BIM the way we do it, it’s so deep in the core, the direct modeling engine that we have build… there’s no way that we could expect, of all the partners that are working on AEC, that one would have the strength and the force to bring the product where it is today. We have worked with maybe 30, 40 people for three, four years to do that. I don’t know of any application partner that has more than ten employees. And then those ten employees do everything.

Mark: Except for Intergraph, of course!

Erik: Except Intergraph! Except Intergraph! In the AEC space, I mean. When it comes to making an architectural modeler, there was no other possibility but to do it ourselves. Then we do it. But what we do then is provide all the APIs so the rest of the AEC community can profit off it. Otherwise, I think we would have lost the AEC space. If we didn’t do that, with what we have shown you today on BIM, we would lose the AEC space completely. That could not happen.

This is the complete set of links to this interview series:

The big Bricsys interview 8 – boundaries and BIM

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This is one of a series of posts covering an extensive interview with Bricsys CEO Erik De Keyser and COO Mark Van Den Bergh.

Erik discusses where Bricsys can go in future and the place BIM has in that.

Cyrena: So what is your vision, ultimately, of what Bricsys will become in tandem with your partners? Do you have limits or boundaries of which markets you will address and which you won’t? Are you going to be bigger than… “somebody else” one day?

Erik: If it comes to the number of customers, challenging AutoCAD is difficult. 12 million registered users. If you count illegal users it might add up to, I don’t know, 20 million, 30 million? I don’t know, nobody knows.

What are the boundaries of where we can go? It’s more or less dictated by the application markets. We have application developers in GIS, we have them in AEC, we have them in mechanical. In Mechanical 3D, AutoCAD was not present. They were present with AutoCAD Mechanical, but that’s a 2D product. If for a moment I leave Inventor out, because it’s another file format, but for DWG, the market for sheet metal and the things that Solidworks and others do, you don’t see third party applications with power participating in that market, with AutoCAD. With all the other markets, there are plenty of other applications: GIS, AEC, it’s endless. We want to bring everyone who wants to work with us, we’re going to feed and help them, and that’s more or less the boundary of where we can go.

For BIM, that’s something we are driving ourselves and it’s a huge market. There’s a lot of attention being paid to Revit [by elements of the press]. We think there are a lot of DWG users that want to move to BIM, but first of all Revit is too expensive, it’s too complicated by far, and it’s another file format. These are hurdles that not everybody wants to jump at the moment. It’s fair to say that we are working to eliminate all those hurdles. An existing DWG user, AutoCAD or BricsCAD already knows 80% of our BIM product. He has to learn 20% extra and he can participate, probably in an easier and more intuitive way than he can ever do with Revit.

We didn’t talk a lot about the differences between Revit and our BIM solution. I think in six months and a year we’re going to spend more time to really explain the differences. BIM is hyped, but there are studies that show that 19% of the people who talk about BIM are actually using it. It’s a couple of hundred thousands, it’s not millions already. There’s a lot of hype around it but the real challenge is to bring five or six million people on DWG in the AEC space into BIM. That’s our goal. If they want to stay on DWG, we are their only chance. For that part only, that’s already a huge start. If you then count all the applications on top of that and around it, the addressable market for us on that is immense.

This is the complete set of links to this interview series:

Teresa from Autodesk in subscription interview

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As a follow-up to the Pixel Fondue video I posted about earlier, Greg from Pixel Fondue conducted a follow-up interview with Teresa Anania, Autodesk’s Senior Director, Subscription Success.

Greg and I asked for your questions for Teresa and I passed on several of my own to him. A word of warning: don’t do as I did and watch through all 54 minutes waiting increasingly impatiently for those questions to come up. They don’t. Anyway, thanks to Greg for conducting this interview and to Teresa for participating.

Greg has now posted the video. Here’s the TL;DW (too long; didn’t watch) version:

  • Greg came up with some suggestions for making subscription more attractive (mainly to entertainment and media customers) and Teresa seemed open to those suggestions.
  • Teresa doubled down on a bunch of the spin that has been thoroughly skewered by myself and many others.
  • There was a rehash of the pricing information we already had a couple of months ago using the same figures Teresa provided in this blog post.
  • The one new piece of information was that somebody who switches from maintenance to subscription will be able to retain access to all prior versions held during perpetual license ownership. This could be interpreted in several different ways and it wasn’t clarified, so I guess we’ll have to wait for something in writing.
  • Despite what Teresa has apparently told some customers on the phone, there was no mention of a less unattractive subscription offer that involves keeping your perpetual license. Indeed, Teresa made it clear that trading in your perpetual license was very much still part of the deal.
  • Future costs for maintenance and subscription were as vague as ever but Teresa thinks it’s pretty impressive that Autodesk put out three years of pricing when asking customers to make a decision with decades-long implications.
  • Teresa wants you to give Autodesk a year to prove how wonderful subscription will be, and is very confident that subscription is for “the greater good”. (Andrew Anagnost also did the “give us a year” thing on Twitter so I guess we’ll see that theme repeated in an attempt to buy more time).
  • She has solemnly stated that Autodesk is never going to gouge its customers and wants to start building better relationships.
  • Teresa wants to hear from you and suggests the Autodesk Moving to Subscription forum as one way of getting in touch.

Here’s the video:

The big Bricsys interview 7 – the applications ecosystem

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This is one of a series of posts covering an extensive interview with Bricsys CEO Erik De Keyser and COO Mark Van Den Bergh.

In this post, Erik discusses the Bricsys efforts to work with and assist third-party developers. He does this without being prompted by a question – it’s obviously very important to him.

Erik: For our future growth it’s very important, the ecosystem of the applications we have now. We have talked a lot about what we are doing and about our own products, but we should maybe have spent more time on the importance of the ecosystem. The worst thing we could do is forget the application market for us.

We will not, and we are not able, to develop another HVAC system or a [inaudible] system. We are limited in our resources and focused too much in our development. We believe that if there are five or ten HVAC packages, one in Germany, one in France, one in the US and one in Australia, all those guys understand their local markets and it’s very difficult to take an HVAC package made in America and sell it in Germany. The last thing we want to do is destroy that diversity of the application market. On the contrary, we’re going to encourage it. Therefore we will continuously provide APIs to the application market and invite and encourage them to become more professional. This support is so important. That’s where we can make a difference with many of our colleagues, and we should bring the application market to the same level of professionalism. That’s where we are investing as well. They can use all our systems for free.

It would be a great and a wonderful world if you as a customer if you come to our website or you go to an application website and finds the same systems and buys something, and communicates… if there’s a problem, it’s our problem. He can tell us, the application partner can tell us, if it’s an application problem we will tell them or the customer will tell them. But that kind of trio between the customer, us and the application market is so important. We need that.

We need those kind of applications working with our system. And they are there! For over ten years they have wonderful applications. The point is, they lacked, for the moment, the technology to grow into IFC and the BIM market. That’s what we are developing for them now. Right now we need the apps, and we’re delivering to them. But it’s a very important thing for us, that ecosystem. And again I think that’s another difference between us and many, er, alternatives (laughs).

Steve: Not saying “the A word” there…

Erik/Mark: (laughs)

Steve: It’s something I’ve noticed for years, actually, that you guys look after the third-party developers whereas Autodesk sees them as a revenue source.

Erik: Absolutely. We are convinced we need them. They have to say they need us as well. That’s a very good symbiosis. And the top of that is Intergraph. For us, it’s an application partner, right? There’s scalability a bit more than before.  If Intergraph takes this step, let us invite every other application developer to do the same.

This is the complete set of links to this interview series:

Autodesk products are falling like parrots

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Autodesk is killing off products at such a rate I can’t keep up with it all. The latest ones to fall off the perch and join the choir invisible are Structural Detailing and Advance Concrete.

I think. As I said, I can’t keep up.

Despite the recent departures, Autodesk still has way too many products and it’s inevitable that the cull of Carl’s acquisitions and creations will continue. It’s just too bad if you’re one of the people using a product that Autodesk feels isn’t profitable and/or exciting enough, you’ll just have to learn to live without it.

Although 2017 has been particularly brutal for End Of Life experiences, Autodesk killing off products is of course nothing new. Autodesk is even named after a dead product (well, stillborn).

Trace back through Autodesk’s history and you’ll see a long and bloody trail of product corpses and wailing orphans. Maybe you’re one of those orphans. Tell us all about your experiences if you think it might be cathartic. Were you looked after?

What sort of product does Autodesk kill off? Let’s narrow it down.

Autodesk kills new products, old products, cloud products, desktop products, mobile products, free products, paid products, full products, add-on products, large products, small products, products that were bought just to kill off for anti-competitive reasons, products that have been ignored to death, and products that Autodesk hyped to the heavens as the best thing ever and if you didn’t get on board you’d be left behind with all the other Luddites and look silly and old-fashioned as your competitors strode off arm-in-arm with Autodesk into a wonderful bright future.

You name it, Autodesk has killed it. It would seem that almost nothing is safe.

To give you some idea what I mean, I’ve resurrected my Autodesk Graveyard page. I tried this a few years ago but it was too big a job to create and maintain it so I killed it (ironically enough). Thanks to Edwin Prakaso on Twitter for inspiring me to have another go at it, with a bit less detail this time so hopefully it’s manageable.

Image of war graves by Arne Hückelheim.
No disrespect intended to those who gave the ultimate sacrifice. Lest we forget.

The Autodesk Graveyard is by no means complete and what’s there may not be 100% accurate. Additions and corrections can be made by letting me know in the comments on this post. If you could provide references that show the birth and death dates of the products you know about, that would be ideal, but all feedback is welcome.

The big Bricsys interview 6 – lean and focused

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This is one of a series of posts covering an extensive interview with Bricsys CEO Erik De Keyser and COO Mark Van Den Bergh. In this post, the dynamic duo explain the mystery of how Bricsys can sell smaller numbers of a more capable product than AutoCAD for a fraction of the cost – and still make money.

Steve: It’s kind of interesting that your product is so much cheaper than AutoCAD, and more capable. They’re making a loss and you’re making increasing profits. How does that work?

Erik: I think it has to do with being lean and being focused. I mean, we’re talking about Autodesk, and we’re talking about AutoCAD and Revit and Inventor, but did you have a look at all the products they have? The managers that have to work on those products… I don’t study the detail of their annual figures, but I think it’s obvious that if you have that ton of products, not all of those products are profitable. Of course, not all of them are losing money, but you can’t call it lean.

What we are doing is… we are forced to be profitable. We force ourselves to be profitable. And then we have to be lean. We have four developers that constantly automate our systems, and that four will be extended again. That pays off big-time. It’s an investment; continuous, continuous, continuous. To invent new things where we can improve to be lean as well.

Mark: Stressing again that Autodesk has one hundred products, we basically have one product. We can see for mechanical, we can see for BIM, basically it’s one product.

Steve: It’s the same core.

Mark: It’s the same core, absolutely. So when we started to develop BIM, we used the same toolset as we used for sheet metal; exactly the same. Of course it’s tweaked to be used in BIM or sheet metal, but in the ground it’s the same.

This is the complete set of links to this interview series:

Props to Bricsys for supporting education

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Some time ago I raised a glass to Autodesk for supporting students and educators by making its software available free. I have been remiss in neglecting to point out that Bricsys also does this.

So I raise a glass of dark, tasty and ridiculously strong Belgian beer to Bricsys for doing this. Cheers!

The big Bricsys interview 5 – perpetual licensing and choice

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This is one of a series of posts covering an extensive interview with Bricsys CEO Erik De Keyser and COO Mark Van Den Bergh.

In this post, Erik confirms the Bricsys commitment to perpetual licensing. That’s a statement important enough to preserve, so here’s the recorded audio for posterity.

We also learn what proportion of CAD customers choose perpetual licenses over rental when given fair pricing and the choice. Hint to Autodesk: it’s not 0%.

Steve: Are you committed to the perpetual licensing model?

Erik: Yes, yes. We are committed to choice. If somebody wants another way of licensing our stuff, that’s fine as well. I mean you can hire our stuff, you can pay per month, it’s possible.

Steve: That’s not in all markets, is it?

Erik: We don’t promote it, but it’s possible if somebody contacts us, no problem. It’s choice, and we believe in choice. It’s not up to us to impose how people work with our stuff. But perpetual, it’s fair, I think. Somebody buys software, it’s always been like that, and we have to continue that. And we will continue that. Read my lips! We will continue.

All: (laughs)

Cyrena: Speaking of choice, can you talk about the type and portion of users who go for rental rather than perpetual?

Mark: Of course the vast majority go for perpetual.

Erik: 95% buyers.

Mark: When you see these clients in Russia that have these big oil projects in Siberia for six months or whatever, then it [rental] might make sense. But with the channel… 95, 97, 98% is just perpetual.

But what we see more and more is people are asking about it [rental] more and more, because of course in the Autodesk world there is no other option. So of course people just want to compare apples with apples.

Steve: So they’re just asking for the numbers?

Mark: Yes, for the numbers, “What would it be?” That’s the feeling that we have, ultimately when they make a decision they’re going to go for perpetual.

Erik: Because the price is acceptable as well, I think. It’s not that high a price for a substantial amount of software, so it’s not a problem.

Mark: Our price levels are completely different, of course. It’s affordable.

This is the complete set of links to this interview series:

Clearing up the Autodesk rental / subscription / maintenance naming confusion

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Some people are confused by Autodesk’s naming terminology about subscription, maintenance and rental. This is entirely Autodesk’s fault, because it took a name (Subscription) which had a long-established meaning (including perpetual licensing) and used that name (but without its initial capital) to mean the opposite (no perpetual licensing).

There was a brief period, only last year, where the S word meant both things at the same time and differentiation between the opposing meanings was achieved using different prefixes.

Confused yet?

I’m not sure whether it’s kinder to view Autodesk doing something so obviously confusing as merely incompetence in communication or a deliberate attempt to confuse and deceive customers and/or the share market. Or maybe it was an inspired choice and I’m too obtuse to comprehend its genius. Choose whichever explanation you prefer.

In an attempt to clear things up, but at the risk of confusing matters further, Autodesk’s naming history goes something like this. The years shown below are approximate and some of them varied for different products and markets.

Year
 Name for perpetual license + pre-paid upgrades Name for rental
1997-2001 VIP Subscription Program –
2001-2003 VIP Subscription Program Rental
2004-2012 Subscription –
2013 Subscription Rental
2014-2015 Subscription –
2016 (briefly) maintenance subscription desktop subscription
2016- maintenance subscription

The current rental regime, which has run under two names to date but is currently called ‘subscription’, is the third attempt Autodesk has had at rental. The first two attempts failed in the marketplace because the vast majority of customers prefer perpetual licenses.

The big Bricsys interview 4 – thank you, Autodesk

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This is one of a series of posts covering an extensive interview with Bricsys CEO Erik De Keyser and COO Mark Van Den Bergh. In this post, we learn that Autodesk’s move to all-rental has helped drive BricsCAD sales higher and continues to do so.

Cyrena: Backing up just a step to sales, were you able to track any impact on your sales numbers with the chronology of Autodesk’s announcements of ending perpetual? Did you see an effect that you could map to that?

Erik/Mark (together): Yes.

Erik: We see that especially with large companies. I hear it from Mark always!

Mark: That’s what I wanted to explain this morning too, although we have an indirect sales channel, we have our resellers at work out there, especially with the large deals, we are involved always. So there’s always one of our guys, a business development manager together with the local sales person in touch with those larger corporations.

In the last few weeks, we have received tons of emails from large corporations; of course it’s hard to disclose them, but… [names a corporation]. It doesn’t mean they will switch right away, but we have meetings where they say that, “Our contract with Autodesk ends in July, August, whatever, that’s the time we will not extend it. We will not renew it, we will not go to subscription, and we are looking for alternatives.” These are really big, big, corporations. So yes, yes, we see an impact.

Erik: When it comes to alternatives, and with all respect to our colleagues [competitors], we are not the only alternative, but I think we are in a good position. If you see what we have to give people a perspective beyond AutoCAD, well…

If we would only be an AutoCAD clone, and AutoCAD stops further development, it would mean the clones stop further development more or less as well. And all of a sudden the market is going to 3D mechanical, 3D BIM, etc., then it’s a problem. I think that’s where we can play an important role.

The DWG market, the DWG community, if they really want to move on slowly, slowly (and everyone makes his own choices about staying on 2D AutoCAD-based, fine as well), but at least there is a growth path. And I see that BricsCAD is the only product that goes in that direction. All the other alternatives more or less stay around what Autodesk is presenting, with a few differences here and there.

But it’s not really mainstream that there is investment in R&D or really a big jump of other stuff than just being compatible with AutoCAD. It makes a difference.

This is the complete set of links to this interview series:

Schrodinger’s CEO – Autodesk top job speculation

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In an earlier post, I asked for your votes on a pair of polls regarding Autodesk’s replacement for Carl Bass as CEO.

Here are the final results from those polls. Although the details of who voted and for what will remain strictly and permanently confidential, I found it interesting to see a number of votes logged from IPs that originate from a well-known software company. I will get no more specific than that.

First, here’s who you think is most likely to be appointed:

Amar’s well ahead in the “person most likely” poll. But note the contrast with who you actually want to be the next Autodesk CEO, where outsiders get bigger numbers. Anyone would think people reading this blog aren’t happy with what the Autodesk candidates have been doing and would like to see a change.

Despite Elon Musk’s popularity, I suspect he may be a little too occupied right now to take on the Autodesk job and give it the attention it deserves.

Among CAD notables I talked with in Ghent, the general view was that the delay in the appointment of a CEO is bad news for current co-CEOs Amar and Andrew; if the Autodesk board was going to give the job to one of them that would have already happened.

I’m not so sure about that. The board might be so happy with the job A & A are doing that they feel there is no rush, but who knows? Maybe the board is struggling to find somebody else with a name where (wcmatch ceoname “Car*l Ba*”) returns T. Maybe one of the dynamic duo has already filled out the deed poll forms and will emerge as Carmel Bartholemew or something.

The big Bricsys interview 3 – looking after people

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This is one of a series of posts covering an extensive interview with Bricsys CEO Erik De Keyser and COO Mark Van Den Bergh. In this post, I learn about Bricsys’ astonishingly good staff retention record and the reasons behind it.

Autodesk likes to periodically pat itself on the back for being a great employer, but history shows it’s a company that discards about 10% of its workforce every few years to keep the share market happy. I suspect another round is coming up soon, unfortunately. There’s a stark contrast between a company that disposes of its chattels in that way and one with a CEO that says, “…every time somebody leaves the company that’s really, really bad.”

You as a customer may not think that matters to you, but it does. I believe there is a direct correlation between Autodesk losing knowledgeable staff and Autodesk repeating old mistakes and breaking things. If today’s developers don’t know why some things in the software are the way they are, or why most changes should automatically come with an off switch, or why some things shouldn’t be done at all, or even how a feature can be maintained (e.g. Visual LISP), then the product suffers. AutoCAD users have to deal with the consequences of those knowledge holes with every release.

As in so many other areas, Bricsys proves to Autodesk that it doesn’t have to be like that; there is a better way.

Steve: Speaking to your people, they appear to like working here and they stick around. What’s your staff turnover like?

Mark: It’s very low, very low.

Erik: Job-hoppers, you mean? People who leave? I think in the last fifteen years… maybe five, six, something like that?

Steve: Wow.

Mark: I remember the reasons, maybe two or three times here, maybe having to leave to move to another city or another country. There as well, we try to find solutions.

We really have a good team atmosphere and if those people can work, if they’re a developer for example, people can work from remote areas. We have a guy who has been working for us for years who is now working from Turkey. That was the discussion we had, “I have to leave because I’m moving to Turkey now.” No, you don’t have to leave, just work from there.

Erik: I will add that in Novosibirsk (Bricsys Russia) it’s more difficult to keep the people. We are growing very fast there. We started when we took over the LEDAS team with 3D modelling, we started there with six or seven people. We now have thirty. Along the road for the last four or five years, maybe five or six left. In percentage, that’s way more than we have here. We are stopping the bleeding now!

Steve: That’s still fairly low!

Erik: That’s still fairly low but every time somebody leaves the company that’s really, really bad. We are investing a lot in making it comfortable for our people. To give you an idea we have a culture here of every Friday, we go to the pizzeria for lunch here. We have our own floor there in the restaurant every Friday. Sometimes we talk about software but sometimes we talk about politics and sometimes just rubbish and nonsense and a lot of fun.

Mark: Mostly!

Erik: But we give a budget to all our teams. In Novosibirsk they do that as well. So they have a budget and we force, well, encourage them very strongly to do that.

Mark: Same in Singapore, [inaudible], all our teams.

Erik: Every year, with all the families, we go to a chateau near Paris for three to four days. In Novosibirsk they have a budget to go for a trip with their families once a year, if there is a special occasion. That’s investing in your people.

If anyone has a problem, everyone knows that all doors are open, that we will try to find a solution to make you comfortable. We always say to our people here that the last thing we want is if they are stressed. It doesn’t work for developers and for a company like ours. No stress.

I was really sorry with Dieter yesterday [one of the presenters at the press event]. They only told him the day before to give a presentation! He’s not used to doing that. He was really good about it as you all saw, but he was really stressed. We will avoid putting him in that situation ever, ever again. It doesn’t work.

But for the rest, even with deadlines, we change priorities then, but we don’t want people stressed. And that has a very good result. If you see where we are coming from, what we have, in fifteen years, millions and millions of lines of code, of testing code as well, it’s a ton of development that is done, quality that we have developed. So far, so good, without stressing our guys. Why would we change that?

Mark: Also, the transparency we show to the outside world with the bug reports and so on, that’s also done internally. Everything here is open. On a quarterly basis we get everyone together, we show the numbers, it’s no secret at all internally. So everyone knows how the company is going, how things are moving, new projects that we are doing, and that feels nice with people.

This is the complete set of links to this interview series:

Minority interest in keep-your-perpetual Autodesk subscription idea

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It’s undeniable that the vast majority of Autodesk’s customers don’t want to give up their perpetual licenses to sign up with Autodesk’s subscription (rental) model. I’ve gone through the evidence for this in an earlier post.

To bring that up to date a little, here are the final results from the poll “Autodesk is ending the sale of perpetual licenses. This is: (Good/Bad)”:

People are clearly attached to their perpetual licenses, regardless of what Autodesk does to manipulate prices.

A while ago I floated the idea that Autodesk might possibly come up with a better offer; one that lets you keep your existing non-upgraded perpetual license when signing up for subscription. I wanted to know if there was any more interest in that, so I wrote a post around that and created another poll, “Would you be interested in switching to Autodesk subscription if you could keep your old (non-upgraded) perpetual license? (Yes/Maybe/No)”. Here’s how the results ended up:

While the level of interest in this idea appears higher than in Autodesk’s current unappealing offer, it’s still not great. It seems most people don’t just want perpetual licenses for the sake of it, they want an escape route: the option to stop paying and keep playing, regardless of file format and OS compatibility issues. That means they want those perpetual licences to remain current.

The upshot is that Autodesk is going to find it very difficult to push most of its existing customers onto subscription, no matter what the offer.

The big Bricsys interview 2 – making money

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This is one of a series of posts covering an extensive interview with Bricsys CEO Erik De Keyser and COO Mark Van Den Bergh. In this post, I ask about Bricsys’ profitability and growth.

Steve: Do you publish your numbers?

Erik: No we don’t. We are a private company.

Steve: Can you give us an indication of what’s happening with your sales at the moment?

Erik: Last year we grew in revenue 25%. First quarter this year was up 27% over the same quarter last year. If you compare the sales in total of 2016 compared with 2015, it was 25% in growth. It means that the growth is going faster and faster and faster. That’s what we expect normally as well.

This is without any sales to Intergraph. We expect that the Intergraph deal will have an impact on our growth for sure. Mark as COO is responsible for sales and managing of that network. [To Mark] And I see you’re very occupied!

Mark: That whole Intergraph network is coming to us. It’s huge.

Erik: It’s more than doubling what we have, on sales partners.

Mark: Just to add to the numbers, we are very profitable: 24, 25%. We have very good profitability which is also significant. We’re not burning money.

Erik: Year after year.

Steve: So you’re making money every year and that’s increasing every year?

Erik: Yeah, yeah, absolutely. The percentage is always around 24-25% but as we’re increasing revenue it becomes exponential.

Mark: We started in 2002 and I think we have always been profitable.

Erik: I think the first two years are what we call a black zero. We have started with an investor, but we have always kept a majority within the company. I won’t give the total shareholders but you must know that most of the people here, if somebody works here two years they get stock options and becomes a shareholder. The goal is we always keep the majority with the employees and the management.

We have a good partner investor. He’s satisfied with the growth, of course. There’s no big deal.

This is the complete set of links to this interview series:

The big Bricsys interview 1 – why invite the press?

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This is the first in a series of posts covering an extensive interview with Bricsys CEO Erik De Keyser and COO Mark Van Den Bergh.

On April 26 and 27, I attended Bricsys Insights, a press event in Ghent, Belgium. Other attendees included Cyrena Respini-Irwin (Cadalyst editor in chief), R.K. McSwain (CAD Panacea), Ralph Grabowski (upFront.eZine), Randall Newton (GraphicSpeak), Roopinder Tara (Engineering.com), Martyn Day (DEVELOP3D), Jeff Rowe (AEC Café), Anthony Frausto-Robledo (Architosh) and Paul Wilkinson (pwcom).

Although Bricsys has invited some of these people (including myself) to previous events, this was the first gathering of such a significant number of illustrious industry press, bloggers and observers. So when myself, Cyrena Respini-Irwin and R.K. McSwain had the opportunity to interview Bricsys CEO Erik De Keyser and COO Mark Van Den Bergh, the first thing that we asked was this:

Cyrena (clarifying earlier question): What was the change that led you to bring in more people for the press event?

Steve: Why are we here?

Erik/Mark: (Laughs)

Cyrena: That’s a big question!

Erik: If you look to the history of what we have done and it goes together with what we said in the beginning, that we chose to grow by organic growth, and for a long time we didn’t do any marketing, and especially for the American market, because if you do it too early… And really, if we had done that massively, five years ago we would have been categorized as just another clone of AutoCAD. Once you have that, it’s very difficult to leave that, and that’s exactly what we wanted to avoid.

And so we waited until we had really substantially different product technologies that add a lot of stuff to… if you compare it to AutoCAD, I think that’s the moment where we are now. And we decided from that moment on, probably it made sense that we tell it a little bit more to the world. And of course what do you do then? You invite influencers in the market, which is the journalists. That’s the reason we invited you all.

We’re going to repeat this more and more.

Mark: Just to add to that, just sitting here for just two days with you guys also helps us to really talk about everything. If you go to a conference (you [Steve] were also in Munich), the time is limited and so we don’t show the systems behind, the testing system, we cannot show everything.

The idea here was, OK, these are the things we’re doing, what you see of course but also what is behind, the people behind the DNA of the company. We thought that’s a good idea to do that in depth with an audience like you guys.

Erik: That’s an important element as well that we wanted to show: the DNA of the company. It’s a bit different from others. That’s who we are and it’s important to know.

Steve: You’re about 90% developers, programmers. Do you think that’s going to change as you put more effort into marketing?

Erik: I think that the awesome part of the company that has to be improved, and on the marketing side we’re going to need to improve… to give you a rough idea we think that over the next two, four years we’re probably going to grow to maybe 200-250 people.

Steve: So where are you now?

Erik: We’re at 130-140. We just hired six new developers here in the office last week so we have to recount where we are in total. Dmitri is hiring in Novosibirsk (Bricsys Russia) as well.

So for sure we are starting what I would call a second life now. There’s been a lot of development, but still the majority of people in our company will be developers. I think we’re always going to stay around 80% developers. But there’s a part of the business, and especially in the marketing, that we will have to improve.

What we have encountered now, with the new modelling techniques we have introduced for BIM, we have to teach all the resellers. We have to produce material to teach the people how to work with it. These are not developers we’re going to need. We’re going to need seasoned architects that have experience for the last six to ten years with BIM already, maybe with competitive products. But that understand the concept, have experience with it, those guys we are now attracting and we’re going to need. Those are not developers, but in that sphere we have to extend and we have to grow. And that’s what we’re doing. We are hiring.

The focus will always be… what we’re good at, is basic research and development. That’s really what we’re doing, that’s the focus, and the results are the products we make.

We have a good partnership network I think, we’re going to continue to feed that, so I expect that balance between developers and non-developers to remain always above or about 80%.

If you have a look at the system, how we sell and support our products, we are scalable, to maintain that balance of a high level of developers. There’s no need for us to change that model. But in certain aspects we’re going to have to extend.

BOA (Bricsys Online Administration) is helping us tremendously to be scalable. If we were to double our revenue we wouldn’t need that many more people to manage that. We are constantly investing in automating all the systems we have, and it pays off big-time.

Cyrena: So that very heavy R&D investment you’ve sustained thus far will be scaled back a little in order to invest in other areas such as marketing?

Erik: Yeah, but it doesn’t mean we will scale back from development. We will grow in development as well, but the balance will be a little bit different; the proportion is different. We will grow tremendously, even more still in R&D when it comes to number of developers than in any other area over any other field or kind of employee that we have.

This is the complete set of links to this interview series:

Disclosure: Bricsys covered travel and accommodation expenses and provided some meals. Oh, and beer. Mustn’t forget the Belgian beer.