Tag Archives: Callan Carpenter

Not answering the question

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Here in Australia, we’re in election mode, so I have even more reasons to avoid watching TV. On those occasions when I do watch it, I am often annoyed by what I see. This is not a novel observation, but one of the things that annoys me about many politicians is their habit of sidestepping questions when interviewed. It also annoys me when interviewers fail to follow up these non-answers and let them slide. Depending on the circumstances (e.g. limited timeframe, more important questions to ask, etc.), there may be valid reasons for journalists failing to chase after legitimate answers in a live interview situation. But I would much prefer to see a non-answering interviewee tied down and not allowed to wriggle free. Squirm, baby, squirm!

For on-line journalists and bloggers, there are few excuses for letting non-answers go unchallenged. There is virtually unlimited time, opportunity and column space in which things can be chased down. With that in mind, this post is an analysis of the response Callan Carpenter gave to the four specific questions I raised, and three points of dispute raised by others and passed on by me for a response. I have marked each response (or non-response) out of 10.

Questions

Please clarify in as much detail as possible exactly how you arrive at your figures.

Answer: none given. 0/10

A percentage is derived by dividing one number by another; what exactly are you dividing by what to come up with 1.5%?

Answer: none given. 0/10

Please explain why your statements appear to contradict Autodesk’s own published figures.

Answer: Callan explained that he did not intend to suggest what it seemed he was implying, but didn’t clearly explain exactly what it was that he actually was suggesting. 5/10

How large is Autodesk’s total installed base?

Answer: none given. 0/10

Points of dispute

Because Autodesk made Subscription cheaper than upgrading, it is no surprise that upgrading became less popular. This doesn’t indicate that customers prefer doing business in that way, merely that Autodesk made it the cheapest alternative.

Response: this statement was pretty much repeated back as if it were an answer: “the majority of customers buying over the past few years have opted to leverage the Subscription program…the most cost effective way possible”. 1/10

If the idea of Subscription is such an attractive proposition, why do you need to sweeten the deal with tools that you don’t allow upgraders to have?

Response: this statement was also pretty much repeated back as if it were an answer: “…there is much more to the program than cost savings…just some of the value-added aspects of the program”. 1/10

Your assertion that the 12-month cycle is driven by the product teams is incorrect. It was chosen for business reasons and the product cycle was forced to fit the Subscription model.

Response: none given. 0/10

Overall “answering the question” mark: 7/70 or 10%.

Callan, thanks for taking some time out of your busy schedule to provide some kind of a response. If you want to have another bite at the cherry and actually answer what you’ve been asked this time, you are welcome to do so. You know where to find me.

Readers, am I being too harsh here?

Autodesk’s Callan Carpenter responds to Subscription follow-up

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You may remember a month ago I raised the question What proportion of Autodesk customers really are on Subscription? Shortly after that, I sent Autodesk Subscription VP Callan Carpenter these questions following up on the interview:

I have a request for follow-up information arising from this interview. I hope you can find the time to provide some answers.

Preamble: Several people have called into doubt your assertion that the simplified upgrade policy affects only a tiny minority of your customers (you seemed to imply a figure of around 3% non-Subscription customers, with 1.5% who upgrade within a year or two). My own calculations based on Autodesk’s latest published financial results indicate that of upgrades represent 21% of the combined income from Subscription and upgrades, which is 7 times greater than the impression you gave in your answer. Please see this post for more discussion.

Questions:

  • Please clarify in as much detail as possible exactly how you arrive at your figures.
  • A percentage is derived by dividing one number by another; what exactly are you dividing by what to come up with 1.5%?
  • Please explain why your statements appear to contradict Autodesk’s own published figures.
  • How large is Autodesk’s total installed base?

Other points of dispute have been raised by various commenters, which I have paraphrased here. I invite your response.

  • Because Autodesk made Subscription cheaper than upgrading, it is no surprise that upgrading became less popular. This doesn’t indicate that customers prefer doing business in that way, merely that Autodesk made it the cheapest alternative.
  • If the idea of Subscription is such an attractive proposition, why do you need to sweeten the deal with tools that you don’t allow upgraders to have?
  • Your assertion that the 12-month cycle is driven by the product teams is incorrect. It was chosen for business reasons and the product cycle was forced to fit the Subscription model.

After a few follow-ups, I received a response yesterday. I reproduce that response here verbatim and without comment:

My sincere apologies for the delay. I have been travelling quite extensively, and this response has been sitting in my drafts email folder, and I just kept getting sidetracked with customer matters.
 
Nonetheless, I appreciate the opportunity to respond to some of the feedback you received after our discussion last month. During that first interview we discussed, among other things, the rationale behind the Simplified Upgrade Pricing program. I argued that SUP impacts only a small subset of our customers, and quoted figures to support the case. It appears those figures have been challenged by a few of your readers who feel their experience is different. Is it possible that both points of view are right? I believe it is.
 
By my prior statements I do not mean to suggest that the vast majority of all customers are on Subscription. Autodesk has a very large base of customers that has grown over the past 28 years. The subscription program as it exists today is only about 8 years old, so we had 20 years to develop a large base of customers, many of whom are not on Subscription. (Yes, there were forerunner programs like VIP, but they were structured quite differently and never generated an appreciable amount of business.) This is important because the SUP program only really impacts those customers upgrading from one and two versions back, which is a very small percentage of the already small upgrade revenue. Subscribers and customers upgrading from four or more versions back see no change to their pricing, and customers upgrading from 3 versions back see either no change or a very nominal one (up or down) depending on their specific product or country.
 
Most of the non-subscribing customer base does not purchase upgrades one or two versions back. In other words, most of these customers either haven’t bought anything from us in a long time, or when they do, they fall into the 98.5% of the revenue that includes upgrades from three or more versions back.
 
History is one thing, but the current trend line is another. For 8 years the Subscription program has coexisted with the Upgrade program. During that time our customers have been free to chose either strategy for keeping their technology current. Based on the results, their choice was clear: the majority of customers buying over the past few years have opted to leverage the Subscription program to stay on the latest technology in the most cost effective way possible. Only a few have elected to stay current through one and two version upgrades. The rest upgraded from older versions – three or more back. Of course Autodesk still offers all those choices going forward, albeit with a slimmed down price sheet.
 
There is one last point that I would like to make: While we believe Subscription is the most cost effective way to stay on the latest design technology, there is much more to the program than cost savings. Direct access to Autodesk product support specialists, Advantage Pack© bonus features, and free software for home use are just some of the value-added aspects of the program. In short, we are committed to an ongoing, continuous reevaluation of both the cost and benefit components of the Subscription value equation in order to make it an attractive option for as many customers as possible.
 
Thanks, again Steve for allowing me the time to speak with your readers.

What proportion of Autodesk customers really are on Subscription?

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In my recent interview of Autodesk Subscription VP Callan Carpenter, he made these statements:

…there is a very small fraction of our revenue that comes from upgrades at this point in time.

We’re down to very low single digits of customers who upgrade, and of those only half of those upgrade 1 or 2 years back. So we’re talking about approximately 1.5% of our revenue that comes from customers upgrading 1 and 2 versions back.

…[customers who upgrade] 1 or 2 [releases] back, a very small percentage of our customer base, less than 2% of our customer base that was buying those upgrades.

Others are calling those numbers into doubt. Deelip Menezes (SYCODE, Print 3D) estimated the numbers of AutoCAD users not on Subscription at 66% (or 43%, depending on which bit of the post you read), by counting the AutoCAD releases used by his customers and making assumptions about their Subscription status from that. That’s an extremely suspect methodology, as I pointed out:

Your numbers don’t really tell us anything about Subscription v. upgrade proportions. All they tell us is that large numbers of people wait a while before installing a new release. We all knew that, surely.

However, Deelip’s post did prompt me to point out this:

…there is a fair point to be made about people on earlier releases who have hopped off the upgrade train altogether, or at least for a significant number of years. How would they be counted in Callan’s figures? They wouldn’t exist at all, as far as his income percentages are concerned.

Owen Wengerd (ManuSoft, CADLock) asked a random sample of his customers and came up with 82% of them as non-Subscription customers. He also noted that he could come up with a 3% non-Subscription figure if he cooked the books by selectively choosing a convenient time slice. Owen doesn’t state the numbers in his sample, or indicate (or know) how many of the non-Subscribers are also non-upgraders.

I’ve added my own poll (see right) just to add to the mix.

Nothing we can hang a conclusion on yet, then. But Ralph Grabowski (WorldCAD Access, upFront.eZine) uses Autodesk’s own figures to point out that upgrade revenue has increased 18% and Subscription revenue only 7% in the last year. I’m not qualified to perform an analysis of the 2011 Q1 fiscal results, but I can find the figures listed as Maintenance revenue ($195 M) and Upgrade revenue ($51 M). That looks to me like about 21% of the Subscription/upgrade income is coming from upgrades.

Also, according to the published figures, Autodesk has 2,383,000 customers on Subscription. If that represents about 97% of customers, does that really mean Autodesk has only about 2.5 M customers? If I’m looking at these figures in the wrong way, feel free to put me right.

So, what’s the truth? What proportion of Autodesk customers really are on Subscription? 3%? 21%? 43%? 66%? 82%? I’m going to ask Callan a follow-up question about this and will report back on what he has to say. In the spirit of this post, I’ll be asking him for a lot more detail. Watch this space.

Callan Carpenter interview 5 – the 12 month cycle

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This 5th post concludes the Callan Carpenter interview series. For the record, this interview was done in real time over the phone, with no prior notice of the questions.

SJ: The 12-month cycle that you have for most of your software has come under some criticism from all sorts of people, especially me. Once you have your customer base practically all on Subscription, what’s the incentive for the 12-month cycle to persist?

CC: In what way have you criticised the 12 month cycle?

SJ: In that it damages the product. In that there’s not enough time to release a properly developed product within that 12-month cycle. This is an observation that many people have made going back many years. That’s the basis of the criticism; not that, “Oh no, you’re giving me more software”. Well, there are people who complain about that but I don’t think that’s a valid criticism. I think the valid criticism is that it damages the product. A poll that I ran on my blog asked that question: is the 12-month cycle damaging the product? The answer was a very emphatic yes from the readers of my blog. I know that’s not a scientific survey but it fits in with other viewpoints I’ve seen expressed in various places.

CC: The question was, do we intend to continue to do that?

SJ: Yes. Once you have effectively have your customers on the Subscription model, so that you’re no longer internally competing with the upgrade model, do you really have to have a 12-month release cycle?

CC: Well, I think it’s a very interesting and valid question, do we need to have a 12-month upgrade cycle? I know there are customers who simply cannot absorb technology at that rate. But it’s a bit of a two-edged sword, in that if we go to a 24-month cycle, for example, do we get criticism for not providing enough value for the Subscription dollar or is it going to be viewed as a positive because it’s improved overall software quality? If we stay at the 12 months, we get the reverse argument. Maybe we’re providing the value that customers are paying for with Subscription, but what are we doing to software quality? I think that one of the things we have to look at over time is alternative delivery mechanisms. You’re going to start to see, for example, software delivered (as we have started to) with things available as Software as a Service. That obviates a lot of the issues associated with those release cycles you’re talking about. Your quality can go up, it’s a lot more controlled environment, and the customer doesn’t have to deal with an install, then another install and another install. So I would imagine you would see augmentation of our desktop products with products like that, that sort of move away from the complexities of the constant need to try and absorb new technology.

I think that it would be a very interesting thing to do on a scientific basis to understand whether customers prefer us to go a 24-month or an 18-month, or you-pick-the cycle. I think internally, your question about is it motivated by some kind of internal competition with upgrades, absolutely not. Upgrades, just look at the numbers, that battle’s over, so there’s no internal competition in that regard. The thing that we do have to deal with, which I think is endemic to any engineering creative group, is software engineers like to write software. They’re not motivated by issues of Subscription, or upgrade, or anything else. What they do is create product. We would literally have to rein those guys back if we wanted to go to a longer cycle. They’re the ones leading the charge on that, not the Subscription program.

SJ: So you’re saying that the development teams like the 12-month cycle?

CC: They do. It brings a certain discipline to them on the one hand; on the other hand, it’s kind of what software writers do, they write software.

SJ: Right, but they can write software that takes 12 months and isn’t finished or they can write software that takes 18 months and is finished. If I were a developer I know which I’d prefer.

CC: I hear your point. I think something we have to always look at is what’s the right balance between functionality and trying to build a bridge too far and to get it released. That’s something I know the product division managers are looking at constantly. Again, it’s absolutely not motivated by Subscription. Like you, I’ve heard customers say, “Would you go to 24 months?”, so I’d be happy to deliver that for them in some cases. But it’s really up to the product divisions.

See also
Callan Carpenter interview 1 – Autodesk and social media
Callan Carpenter interview 2 – upgrades a tiny minority
Callan Carpenter interview 3 – the cost of complexity
Callan Carpenter interview 4 – enhancing the program

Callan Carpenter interview 4 – enhancing the program

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Part 4 of 5 in this series.

SJ: There is always the fear that once you have all of your customer base on Subscription, you’re not going to need to offer those benefits any more. Can you assure people that that’s not going to be the case, that you are going to keep being “nice” to your customers?

CC: Absolutely. I think my team and I spend as much time and brain energy trying to figure out how to enhance the program as anything else. Our goal is to make Subscription a compelling value proposition; to make it not only cost-effective but valuable in other ways. An example would be the Advantage Pack program. We had a history of Subscription including extensions and other little technology bonuses for subscribers. But last year, we said we’re going to do something different with that. One of the problems with our historical technical Extensions program is that it was optional for product line managers to either participate or not. It was optional for product line managers to localise those Extensions in languages other than English. It was optional to make those Extensions incremental install as opposed to requiring a full reinstallation of a product.

So last year, we turned a lot of our product development upside down and produced the Advantage Pack with a whole new set of requirements. A product had to be localised, it had to be incremental install, and the top 26 or 27 product lines all had to participate in delivering that value. We saw the impact in the form of a 150% increase in the downloads of that Advantage Pack. That’s an example of trying to improve the value, and you’re going to see some additional fairly significant moves on our part on the Advantage Pack this year that are going to have a lasting impact on Subscription and how people look at it. Next year, we plan to improve it yet more, and so on. I don’t see any end in sight. It’s a competitive world out there and the only way you survive is by continuing to improve and grow and add value, otherwise you get replaced, and nobody’s immune to that. No company, no market.

SJ: You said that there was a 150% increase in Advantage Pack downloads. What was increasing over what?

CC: Prior to Advantage Pack, we had the Extensions program. If you took all the Extensions for the various products for the prior year, the last year we had Extensions (2008), and you compare that to the number of downloads of the Advantage Pack, it’s a 150% increase of Advantage Pack downloads over Extensions.

SJ: But there had been no Extensions for AutoCAD since the very early years, right?

CC: No, there were Extensions for AutoCAD. For example, there was an AutoCAD Extension 2 years ago for PDF writing. This year, I don’t want to give the cat away, but you’re going to see some very interesting technology that is being made exclusively available to subscribers for no additional charge, that I think they will find quite interesting.

SJ: I was scratching my head to think of Extensions; after the initial burst when they first came out there was practically nothing. There was a trickle of them that came through for the various verticals, but I’m struggling to think of AutoCAD ones between, say, 2002 and 2007.

CC: I think you’re highlighting a potential example of a challenge that we had with the old Extensions program in that it was optional for product line managers to participate or not. Today, that’s not the case and that includes AutoCAD. They do participate in the Advantage Pack program and will continue to do so, along with Revit, Inventor and 20-odd other products that are our biggest sellers.

SJ: So that’s a permanent fixture as far as you’re concerned? The Advantage Packs aren’t going to disappear?

CC: Not unless we can come up with something better.

SJ: So there are no other nasties you have planned for customers? You’re not going to, for example, change the EULA so that Subscription is going to have to be paid otherwise your licenses don’t work any more?

CC: No, at this stage we don’t see any change to the perpetual license model if that’s what you’re referring to. We have a hybrid model, which is different from some industries. Some industries are all perpetual, some industries are all term-based licensing, we are still perpetual, plus Subscription or maintenance. I don’t see that changing. It’s hard to predict 50 years into the future, but we have no plans for that.

See also
Callan Carpenter interview 1 – Autodesk and social media
Callan Carpenter interview 2 – upgrades a tiny minority
Callan Carpenter interview 3 – the cost of complexity

Callan Carpenter interview 3 – the cost of complexity

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Part 3 of 5 in this series.

SJ: In one of my blog posts, I was pretty cynical about one of the phrases used in the press release: “the streamlining of upgrade pricing based on feedback from customers and resellers”. Was I wrong to be cynical about that? Did your customers really ask for upgrade prices to be increased to some nice round number?

CC: What our customers have asked for is simplified purchasing. We have a very complex price book and it leads to thousands of prices items, maybe tens of thousands when you have all the permutations across all the different geographies in which we sell software. A lot of that complexity came from having multiple-step upgrades, multiple-step crossgrades. There is a cost to maintaining that kind of a system. So our resellers certainly were asking for simplification and streamlining explicitly. Our customers were asking to find ways to make it easier to do business with Autodesk; can it be less expensive? One of the costs of doing business is maintaining a very complex pricing scheme as we have in the past. So while we may not have a customer say, “Gosh, I wish you would simplify your upgrade pricing” explicitly, it is implicit in trying to offer an easier path to buying and less cost in the long run because we’re not maintaining a very complex system that only serves a very small percentage of our customer base.

SJ: So there’s a real cost associated with this. Can you put a number on that as a percentage of the cost of the upgrade? Is it 1%? 10%? Is a big amount that customers need to be worried about?

CC: You know, I’ve never tried to put it as a percentage of the cost of an upgrade and tried to figure it out. Some of these things are a little difficult to untangle, but you can look at the complexity of your back office software, the staff that it takes to maintain it, the cost of the releases; our customers are simply aware of our releases of our software products, but they’re not aware of the fact that of course we have numerous releases of our internal systems for tracking and matching assets, price books, things like this. All of those have a cost associated with them. People, software, systems and so on. I haven’t ever tried to calculate that as a percentage of the cost of an upgrade, but it’s certainly a real cost nonetheless.

SJ: So let’s say it was costing people 5%. Why didn’t you reduce the prices by 5% instead of trebling them?

CC: Well, we didn’t really treble the prices. What we did was we said, remember for 3 or more versions back, the price is essentially unchanged. It may be a couple of hundred dollars more expensive or less expensive depending on the product and the market for the third version back. The big change was really in 1 or 2 back, a very small percentage of our customer base, less than 2% of our customer base that was buying those upgrades. It didn’t really make sense to us to maintain the complexity for that small percentage of our customer base.

I think that it’s an interesting point that we’re in because if you go back far enough in time, and you don’t have to go back that far, about 8 or 9 years I guess, with Subscription we could have been arguing the other extreme. We could have been arguing that, “My goodness, why are you making me pay for upgrades?”, and this Subscription thing either didn’t exist or it was very, very expensive. And then we designed Subscription to actually be very cost-effective, to be the most cost-effective to get access to this technology. So it’s an interesting inversion. I think it would be an interesting mind-experiment to wonder what would happen if we took away our Subscription pricing tomorrow, which is typically somewhere between 10% and 18% of list price of the product, depending on the product and the market. If we took that option away tomorrow, I think we actually would create tremendous havoc in the marketplace, because that’s really where the majority of our customers are today in terms of buying our software.

SJ: There are people who do still want to buy upgrades, those who want to have that choice. Do you understand the mindset of people who say, “I want to see what the product is before I pay for it”?

CC: I can appreciate that sentiment. I’d like to believe that our 25+ years of history has generally shown that our pace of advancement is generally up and to the right. Certainly there have been hiccups along the way; some releases have more functionality than others, but generally it’s up and to the right. But the customers who wish to do that, I certainly can appreciate that and that’s as good a reason as any for why we’ve kept upgrade and Subscription pricing as opposed to one or the other, because it gives customers a choice. For those customers who tend to want to wait and see, again the vast majority of them are doing it 3 or more versions back. If they’re doing it less than that, they’re on Subscription, by and large. So they still have that option. Even with the simplified upgrade pricing, I think it’s important to point out that we announced it over a year ago, and even today, if a customer goes off Subscription, they have up to a year to retroactively attach it. So the hope is with that timeframe, questions of, “Is the economy going to turn back up?”, those sort of things will be answered. If it takes 2 years for those questions to be answered, well then you’re back to 3 versions back pricing or more, and that has hardly changed, if at all. So I think that those kind of customers that want to wait and see what the product is going to be before they buy it, they have that option.

You have to also realise that there are also other benefits that come from Subscription in addition to the upgrade. Access to our product support teams, access to prior version usage, home use licenses, the prerequisite to global floating network licenses and other types of benefits, those are a very significant proportion of the value.

See also
Callan Carpenter interview 1 – Autodesk and social media
Callan Carpenter interview 2 – upgrades a tiny minority

Callan Carpenter interview 2 – upgrades a tiny minority

5 Replies

Part 2 of 5 in this series.

SJ: Is there anything specific you want to say about what I have written in my blog?

CC: There are a number of things we can do to put Subscription questions and Simplified Upgrade Pricing into context. I think the first thing we need to recognise is that there is a very small fraction of our revenue that comes from upgrades at this point in time. For the last 8 years or so, our customers have fairly well self-selected to either prefer to be on Subscription and have the latest version and technology available to them, or to not do that, in which case they tend to upgrade 3 years or more after the current release. We’re down to very low single digits of customers who upgrade, and of those only half of those upgrade 1 or 2 years back. So we’re talking about approximately 1.5% of our revenue that comes from customers upgrading 1 and 2 versions back. And so I think there’s clearly been a natural selection, a natural fallout over time of customers choosing; do I prefer to be on Subscription or do I prefer to pay for an upgrade?

If you look at the real impact of upgrade pricing, the real impact is the customers who prefer to upgrade from 1 or 2 versions back, that’s a very very small percentage of our business. For those who are 3 versions back or more, there’s really no change at all. For subscribers, which is the majority of the customer base, there is no change at all either. I just wanted to start by kind of putting that in perspective.

I think the other thing we should look at is that the history of the Subscription program is one of actually creating more value over time. It started out as simply an upgrade path, a cheaper path to upgrade than buying upgrades. Over time we’ve added more value in terms of additional support options, additional licensing benefits that come with Subscription and later on this year you are going to see things like a very enhanced Advantage Pack program, which started last year.

So as I read through a lot of the blogs, I was struck by a kind of lack of perspective on how the program has grown over time and how very few of our customers were actually buying upgrades.

SJ: There are some of your customers that don’t have any option but to be on Subscription, aren’t there? There are some markets and some products where Subscription is compulsory, right?

CC: No, with a few exceptions, I don’t believe we have any compulsory Subscription left. There may be a few in some emerging countries where software piracy is a particular issue, but generally speaking, the vast majority of our customers have the option to either be on Subscription or not.

SJ: For some years here in Australia, if you wanted to upgrade to the latest release, Subscription has been compulsory. Is this unique to Australia or does this happen elsewhere?

In Australia we do have a unique experiment, but that is fairly unusual. No other country comes to the top of my mind.

SJ: Is this experiment going to continue or does the point become moot now that the price of upgrading has been increased?

CC: I don’t think we’re going to be changing the way we do business in Australia.

See also
Callan Carpenter interview 1 – Autodesk and social media

Callan Carpenter interview 1 – Autodesk and social media

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A couple of weeks ago, Angela Simoes from the Autodesk Corporate PR team invited me to interview Callan Carpenter, Autodesk’s Vice President of Global Subscription and Support. Callan is responsible for the sales, marketing operations and product support associated with Subscription. He is also Vice President in charge of Jim Quanci’s Autodesk Developer Network. This morning, we had a very extensive discussion about Subscription and other topics that I intend to publish in several parts over the next few days. Deelip has already published a Callan interview, but mine is quite different.

In this post, I will let Callan introduce himself and then move into some questions about social media that I asked at the end of the interview. In this post, both Callan Carpenter (CC) and Angela Simoes (AS) responded to my questions.

SJ: Callan, can you give me some background on yourself?

CC: I’ve been at Autodesk since November 2008. Prior to that, I spent 20-odd years in the semiconductor and semiconductor-CAD software business: technologies in many ways analogous to what we have for our manufacturing, civil and media/entertainment markets here. I was focused on semiconductor design, manufacturing, electrical properties and so forth. I’m an electrical engineer by training. I’ve spent about half of my time in startups and about half in big companies. Everything from designing silicon to sales and marketing to engineering to you-name-it.

SJ: It’s kind of unusual for me as a mere blogger to be approached by a Vice President, but I’ve had this happen twice in the past couple of weeks. Is there a move within Autodesk to engage more with bloggers and social media?

CC: We’re definitely more conscious of social media than we have been historically. We are becoming more cognisant of the power of social media, whether it’s tweets or blogs or other forms. Like any company we have to adapt to that, respond to that and participate in the conversation.

AS: There’s no doubt that the line between what you would call traditional media and social media or bloggers is really blurring, and has been blurring over the last 5 to 10 years. You can’t deny that there are some bloggers, like yourself, Steve, who are quite influential in their industries. So it’s a natural move for us to start engaging more closely with bloggers, especially the ones that are clearly using our product every day, have a very engaged audience, who are really discussing some meaty issues on their blogs. Because we want to ensure that you have just as much information and access to our executives as someone in the traditional media would. Yes, we’re absolutely engaging more closely with bloggers.

SJ: Is this a policy decision or has it just naturally happened?

AS: It just sort of naturally happened. I’ve been here for 4 years now and ever since I’ve been here we’ve always engaged with bloggers in some capacity. This has increased over the past 2 or 3 years, significantly.

CC: I think it’s fair to say that Carl, our CEO and Chris Bradshaw, our Chief Marketing Officer, are very cognisant, very sensitive to… we have to adapt to the way our customers, and our next generation and next generation of customers are using technology, using social networks. They challenge us to not stay stuck in the old paradigms. So there’s a lot of support from the top for engaging in social media.

AS: I think you’d be surprised how many people at the top actually read various blogs and follow what people are saying. They definitely pay attention.

SJ: I read an interesting article the other day about who should be running social media for a corporation; should they have a specific department for it or whatever? How is that happening in Autodesk? Is that a PR function or does everybody do it?

AS: We as a company across all departments have put a lot of effort into looking at what other companies are doing, what works for large companies, trying to find the model that fits best for us. We found that there were already a lot of people across departments participating in Twitter and Facebook, posting videos on YouTube, and so the coordinating functions will sit within marketing, but each department or industry division will have a representative on a social web council, where we are collectively making decisions together. But there isn’t one person doing all this.

CC: So for example, in my capacity with product support, there is an element of social media to our strategy there as well, starting with an improved set of forums and new methodology there that we will be unrolling there later this year as part of our new comprehensive remake of our self-help infrastructure. Then I don’t know where it’s going to evolve to, I think that’s one of the interesting things about social media is, who knows where this is going to end? But we’re definitely looking at it from a support perspective, a marketing perspective, a PR perspective, even from a sales perspective, so there’s so many different dimensions to it. It’s coordinated by marketing, but it’s starting to enthuse almost all aspects of the business and that’s a very interesting thing. Who could have predicted that 10 years ago?

AS: We want to make sure if someone is tweeting about a problem with a download, or somebody isn’t able to log in to the Subscription Center for some reason, or even can’t find information on a product they’re looking for, all of those are different problems to be solved by different groups, and so we are putting into place listening mechanisms so that we are listening to our customers and addressing their concerns and questions in a timely manner. And that does take a lot of coordination internally but we’re working hard at it.

CC: A good example was over a year ago, we did our first major software download for the upgrades in 3 trial countries. One of the feedback mechanisms we used to improve the design of the download experience was listening to tweets.