Tag Archives: Maintenance

Autodesk license costs options 1 & 2 – stay on maintenance, subscription now

Note: due to new information from Autodesk, an updated summary has been posted.

In this series of posts, I’ll examine various payment options for CAD software and compare them with the cost of staying on your Autodesk maintenance contract long-term. Once I’ve gone through all the options, I’ll do a summary post that compares everything, but there are so many variables that a single post that covers all the options in adequate detail would be very long and complex.

First, I need to describe what I’m using as the basis of my comparison. Prior to Autodesk’s recent announcement, the annual maintenence cost to keep one copy of AutoCAD up to date was US$540 and the equivalent subscription (rental) cost was US$1680. I’ll call this the 2016 cost.

Autodesk has announced that maintenance costs will rise by 5% in 2017, 10% in 2018 and 20% in 2019. The rises are compound, so the actual rises from the 2016 cost are 5%, 15.5% and 38.6%.

No announcements have been made regarding the cost of maintenance from 2020 onwards, but it’s safe to say that Autodesk won’t be making life easy for its maintenance customers. In order to compare costs beyond the short term, an assumption must be made about future maintenance price rises. I’ve made the assumption that these will be 20% a year, compound. That may be generous to Autodesk, but time will tell.

It would be remiss of me to mention an even lower baseline that could be used:

Option 0 – drop maintenance, keep using AutoCAD
Pros: zero costs, keep your perpetual license
Cons: don’t keep up to date, previous version & home use rights, reduced support

3 year cost $0 (average $0)
5 year cost $0 (average $0)
10 year cost $0 (average $0)

For some of you, that option will seem suddenly quite attractive. If it works for you, go ahead and you may as well stop reading now.

Others will want or need to keep their software up to date. Option 1 below is what I am using as my baseline for comparison. Assuming you’re a perpetual license holder who has been paying annual maintenance, just keep doing what you have been doing, as long as you can.

Option 1 – stay on maintenance
Assumptions: maintenance cost 20% compound rise annually from 2020
Pros: keep your perpetual license, keep it up to date, retain previous version & home use rights
Cons: increasing costs, expect more unpleasant “persuasive” surprises from Autodesk

3 year cost $1957 (average $652)
5 year cost $3951 (average $790)
10 year cost $13665 (average $1366)

There’s always the possibility that Autodesk could get really nasty and bump up maintenance costs even more, say 30% a year from 2020. That looks like this:

Option 1a – stay on maintenance (30%)
Assumptions: 30% compound rise annually from 2020
Pros: keep your perpetual license, keep it up to date, retain previous version & home use rights
Cons: increasing costs, expect more unpleasant “persuasive” surprises from Autodesk

3 year cost $1957 (average $652)
5 year cost $4216 (average $843)
10 year cost $19223 (average $1922)

A curious aspect of Autodesk’s announcement is that the offer associated with switching from maintenance to subscription doesn’t kick in until June. If your renewal date falls between now and then, and assuming no other special offers apply, the cost is huge. I’ve had to make assumptions here too. Again, being generous to Autodesk, I’ve assumed there will be no subscription price rises until 2020, at which point Autodesk will start bumping things up 10% a year. Here’s how that pans out.

Option 2 – subscription now
Assumptions: 10% compound rise annually from 2020
Pros: keep it up to date, retain previous version & home use rights
Cons: lose your perpetual license, ridiculously high costs

3 year cost $5040 (average $1680)
5 year cost $8921 (average $1784)
10 year cost $22572 (average $2257)

At this stage, it’s easy to dismiss option 2. You would need rocks in your head to switch to subscription right now before the special offer kicks in. The options that will be available from June will be examined in the next post.

There are a number of ways these options can be compared graphically. For example, here’s a bar chart showing the cost incurred in each year:

Here’s a line graph showing the same thing. I think this is clearer.

Although this graph is useful in showing what budget you would need each year in each scenario, it’s not ideal when comparing the total expenditure. Here’s a line graph of the cumulative total expenditure for each of the options:

However, the graph type I find most useful in comparing options shows the average annual cost for each option, and how that average cost varies over time.

With this format, you can do a direct comparison between options at any point in time. You can say, “Option A has the lowest cost per year for the first 6 years, then option B gets cheaper. If we’re going to be using the software for 6 years or longer, we should choose option B.” I’m going to be using this graph format from now on.

Posts in this series:
1. Autodesk license costs options 1 & 2 – stay on maintenance, subscription now
2. Autodesk license costs options 3, 4 & 5 – bait and switch
3. Autodesk license costs options 6 to 10 – abandon maintenance or Autodesk
4. Autodesk license costs options – summary
5. Autodesk license costs options – summary 2

Bullshit Returns – Autodesk maintenance price hike part 2

In this post I continue skewering the welcome post to Autodesk’s Moving to Subscription forum. See here for part 1.

Access to new industry collections – Available only through subscription, you’ll realize significant savings when you need two or more Autodesk software products.

Bullshit. Industry collections are just rental-only engorged suites. Suites are those things with many more than two products; things that Autodesk has been pushing hard for years, before dropping them from the price list. If you already have a suite that contains the products you need (remember, Autodesk’s statements are aimed at existing perpetual license holders), switching to an industry collection will cost you vastly more. That’s the opposite of significant savings.

New and improved support – Enjoy faster response times and the option to receive help by scheduling a call with Autodesk technical support specialists.

It’s just possible this isn’t bullshit. Autodesk support can certainly be sub-optimal and it’s just possible that some of the massive slab of funds Autodesk expects to collect will be diverted to improving support for those who pay the most. Maybe. But I bet Autodesk’s very best high-cost efforts still look very weak compared with the free support provided by Bricsys.

Simplified administration – Access tools that streamline deployment and software management when you standardize all of your Autodesk products on subscription.

Bullshit. The user-based internet-reliant subscription licensing method is a CAD Manager’s nightmare. The device-based standalone licensing system for perpetual license products, while not perfect, is vastly superior from an administration viewpoint. And don’t get me started on the CF that is Autodesk desktop app.

Because managing two business models (subscription and maintenance plans) is costly, in order to continue supporting maintenance plans, beginning May 7, 2017, maintenance plan renewal prices will increase by 5% in 2017, 10% in 2018, and 20% in 2019.

Bullshit. The price is increasing to push customers into expensive rental arrangements and remove the Autodesk payment escape route provided by perpetual licenses, not to recoup costs. Even if there were substantial costs involved in managing an additional business model (rental), there is more than enough margin in the massive rental costs to cover that. And Autodesk, if the costs are substantial, then you’re doing it wrong. If your management is not competent enough to arrange its affairs efficiently and cost-effectively then I have no sympathy. Don’t come to me with your hand out, crying poor.

But I don’t believe for a second that any such costs really are significant enough to justify those increases. I have searched in vain in Autodesk’s financial reports for such a cost blowout. Maybe I’m missing something, but it would appear that Autodesk’s cost of non-subscription revenue actually fell 9% from 208.5m in FY2015 to 190.6m in FY2017.

Can we long-term customers have some of that saving, please? If not, how about a small slice of the billion dollars a year that Autodesk spends on marketing and sales? Cut the generation of bullshit by a fraction, reward your most loyal customers instead of screwing them over, and everybody will be happy.

Having disposed of the bovine ordure associated with Autodesk’s price hikes, we can next move on to the substance of them. How do the costs work out? Are you better off switching to rental, staying on maintenance or switching to a competing product from a less greedy, more trustworthy company? Look forward to an objective analysis. With no bullshit.

Bullshit Returns – Autodesk maintenance price hike part 1

Just when you think it’s safe to walk across the cattle enclosure in your best shoes, Autodesk drops another steaming pile of spin for its customers to step into.

Here, I’m skewering the welcome post to Autodesk’s Moving to Subscription forum. However, I believe I should really acknowledge the unnamed author of the Important Updates on Maintenance Plans FAQ, which the welcome post has merely paraphrased for simplicity.

There’s so much bullshit in there that I’m going to split my exploration of it into two posts. Let’s put on some rubber gloves and start delving around in the muck, shall we?

Autodesk believes that subscribing is the best way for our customers to get the greatest value from our tools and technologies

Bullshit. Autodesk believes the opposite, as does anyone else with more than two brain cells to rub together. The whole idea is to get us paying the most for the least (the worst value), not the least for the most (the greatest value). Paying treble for the same product really isn’t the greatest value, is it? Nobody, not even Autodesk, believes that it is.

Don’t take my word for it, though. Have a look at this 2013 Autodesk video in which the following truth is uttered by Autodesk Entertainment Industry Manager, Maurice Patel:

We actually see that for customers that have long-term production needs, where they need software day-in, day-out for multiple years, then the perpetual offering is the most cost-effective offering.

Ouch! When a company contradicts its own counterfactual crap, you know the bullshit meter is well into the red.

Next, have a look at this gem:

subscription will fundamentally change how we deliver extended capabilities and new functionalities through connected services

Bullshit. Subscription (rental) is a payment method, not a technology. It is not intricately linked with any particular software or solution. It need not affect how Autodesk delivers anything.

Only with subscription will you realize greater value through the following benefits: Latest and greatest product capabilities – Get access to Autodesk’s ongoing stream of innovation

Bullshit. For AutoCAD users, Autodesk’s stream of innovation dried to a tiny trickle years ago. Rental, where the whole idea is to pay for access to the software rather than in exchange for improvements to it, will only make things worse.

updates to core products…and additional capabilities as soon as they are available

Bullshit. Updates are also provided to customers on maintenance. Of course, that’s how it has to be; if they weren’t that would be an outrageous breach of trust (and contract). There is no need for the payment method to have any effect on how improvements are delivered.

cloud services for desktop products

Bullshit. Cloud services for desktop products are also available to customers on maintenance, and if Autodesk wants to continue pushing its cloudy vision it will have to keep it that way. Not that you really want to rely on Autodesk’s cloud services.

at no additional cost.

Bullshit. There is plenty of additional cost when compared with maintenance. Rental costs three times as much, and will still be twice the price even in a few years after the price increases.

Continued in the second installment.

Return of the bullshit – baked beans edition

In an October 2015 post I’ve only just noticed, snappily titled No More Software Like a Can of Baked Beans: Why Software Subscription Serves It Up Fresh, Autodesk VP (edit – now CEO) Andrew Anagnost bravely attempts to sell Autodesk’s move to all-rental software. This is a rather belated response, but fortunately there is no statute of limitations on skewering spin so let’s get started.

How does he go? On a positive note, top marks for creative writing! The general theme is a strained and somewhat Californian analogy in which perpetual licenses are like canned goods (bad), and rental is like fresh produce (good). However, it’s presented well and professionally written. Among the highlights are:

  • Perpetual software licenses are like high-fructose corn syrup – no, I’m not making this up. Stop laughing at the back there!
  • This is a change that is simply a better experience for everyone – everyone who likes the experience of paying more for less, that is.
  • It’s to create a better product, something tailored to customers – creating a better product seems beyond Autodesk, at least where AutoCAD is concerned. Actually, it’s to create a more expensive product. Tailoring is something we customers been doing for over 30 years without the use of rental software, thanks.
  • There will be less disruption – except a) how we pay for the product is independent of how/when the product is updated and the disruptions inherent in that, and b) even ignoring the erroneous conflation, it’s a mistake to assume that continuous updates are less disruptive. Recent history proves otherwise.
  • Companies (e.g. Autodesk) will work even harder to keep you happy as a rental customer – history gives the lie to this one, too; the closer Autodesk has got to this model and the more people have been locked into annual subscription/maintenance payments, the worse the value for money has become. It also ignores the various alternative ways Autodesk will use to try to keep you tied in. What do you think all that Cloud investment has been for?
  • Autodesk is focusing on helping customers succeed with its products and services – I don’t think so. Autodesk is focusing on trying to keep its shareholders happy.
  • Serial numbers are a terrible dehumanizing thing, rental will make them go away and relying on Autodesk’s internet expertise for Cloud-based licensing is a much more attractive proposition – serial numbers are fine, that’s just silly. There are a host of unnecessary problems introduced by Cloud-based licensing, even when dealing with companies that aren’t as crap at the Internet as Autodesk (e.g. the Redshift site won’t even let me scroll back up once I’ve scrolled past the end of the post). The idea of Autodesk disposing of serial numbers and implementing a phone-home scheme instead is pretty terrifying, and I can only hope that technical issues prevent it from ever reaching production. Mind you, the fact that some new thing is clearly unfinished to the point of uselessness doesn’t seem to prevent Autodesk releasing it these days, so who knows? Hmm, I feel another post coming on about this…
  • Autodesk will make all your customization work for you on all computers and other devices wherever you go – let’s put aside for a moment Autodesk’s total failure to even provide a usable vanilla AutoCAD on the Cloud so far. CAD Managers, would any of you care to hop in and let Andrew know what’s wrong with this picture?
  • Constant automatic incremental updates are like reading news articles daily and much more convenient than larger upgrades which are like getting a whole year’s worth of news at once – again, this makes the fatal error of conflating payment and upgrade delivery methods. Putting that aside, if we’re talking about virus definitions and OS or browser security hole fixes, then yes, automatic updates are the way to go. CAD software, not so much. Particularly software from Autodesk, given the incompetence shown to date in its attempts to make this model work. Even putting aside the practicalities, I could do a whole long post on why this concept is all wrong. Maybe I will later. Meantime, Andrew needs to talk to some CAD Managers to get some idea of how the real world works.
  • “OK, so there’s still the major elephant in the room: What about the cost?” – good of you to mention that elephant, tell me more.
  • For customers, there is real financial advantage by eliminating that huge upfront payment. – For some customers, yes. Not so many, though. Short-term customers are the minority. What about the millions of long-term users who would have their annual costs blown sky-high by falling into your rental trap? Andrew, I see you mentioned the elephant in the room and then tried to avoid meaningful discussion of it, giving the impression you had addressed the issue without actually doing so. Sorry, but I noticed. Care to try again? Tell me more about how you expect either a) customers to be better off by paying more, or b) Autodesk to be better off despite customers paying less. Pick either one of those and run with it, I’m sure it will be entertaining.
  • “And if you don’t need a product for months at a time, switch it off, and then switch it back on. It will be there ready and waiting for you” – strange, that kind of flexibility seems to work for perpetual licenses too, at a fraction of the long-term cost of rental. No guarantee that flexibility is a reality for rental products, though, because the vendor may not provide that product when I need it, or may have racked up the prices to exorbitant levels, or may have introduced new incompatibilities or other technical problems. Oh dear, the boot is very much on the other foot with that argument.
  • “After three years, software becomes obsolete…” – er, no. Many people (myself included) are happily productive using at least some software more than three years old. Some of it works better than the newer stuff. Hands up all those people who couldn’t possibly live without the latest version of Word or Excel, for example. Anyone? Didn’t think so.
  • “…and the pace of obsolescence is rapidly increasing” – if we’re talking Autodesk software, then the pace of obsolescence is doing the opposite. AutoCAD improvement has slowed almost to a halt, for example. There is little in any of the last few releases that gives an AutoCAD 2017 user a significant productivity advantage over an AutoCAD 2013 user, say. And anyone using AutoCAD 2010 or earlier has a much more efficient Help system than that provided in any of the last 7 releases. I guess that’s the kind of anti-progress that happens when you sack a bunch of knowledgeable people every few years and divert too many of the remaining resources to trendier projects that you end up junking anyway.
  • Customers of Autodesk can continue to renew their maintenance contracts for as long as they want – except that Carl Bass has now indicated otherwise. Andrew, maybe have a word with your boss and get back to me on that one?
  • “The company is always listening to how to improve the transition and setting out for the long road, not the short win” – except rental is all about the opposite: short term savings that cost big in the long term. And don’t get me started on the irony of claiming Autodesk is “always listening” while promoting an all-rental scheme that goes against the very clearly expressed wishes of customers.
  • “It’s this beautiful kind of world where things are connected and work together better” – does it have rainbows and unicorns, too? Strewth. Come off it, Autodesk is rubbish at CAD interoperability, even among the AutoCAD-based products. Why should anyone who’s been struggling with poxy proxy objects for a couple of decades believe that paying differently is going to act as some kind of magic spell to make everything exquisite in CAD Connectivity Kingdom?

Here’s the TL;DR version of my response to Andrew’s arguments if you can’t be bothered reading all that:

Bullshit.

 
What are the real reasons Autodesk is going all-rental?

  • Autodesk wants to charge us long-term users three times as much money for the same thing and leave us with nothing at the end of it.
  • Autodesk thinks we’re all stupid and don’t own calculators.
  • Adobe did this and made it work, and Autodesk thinks it can do likewise despite significant business differences, much higher prices and an untrusting customer base.
  • Autodesk has run out of motivation and/or ideas to improve its traditional cash-cow flagship products, to the extent that customers increasingly no longer see value in upgrades or maintenance.
  • Increasing income by product improvement is way too difficult; price gouging and spin is much cheaper.

I’ll conclude with my own strained analogy:

Autodesk spin is like a tin of baked beans. No matter how attractive the packaging, the end result is just a bad smell.

When is a subscription-only update not a subscription-only update?

Before I get started, I want to clarify the meaning of the word ‘subscription’. For about 15 years, the word Subscription (note the initial capital) meant something specific for Autodesk customers. It meant you had bought a perpetual license and instead of paying for periodical updates, you paid for a year’s Subscription in advance. In allowed access to any new release that appeared during that year plus various other benefits.

That thing that was once called ‘Subscription’ has now been renamed ‘maintenance’ (no initial capital) in Autodeskspeak. So what does ‘subscription’ (no initial capital) mean? Rental. You pay in advance for use of the product for a period and when you stop paying, you stop using the product. This is now the only way to obtain Autodesk software you don’t already own. In addition to access to any new release that appears during the subscription period, it provides other benefits similar to what is now called maintenance.

To confuse matters further, Autodesk briefly called rental ‘Desktop Subscription’ (note the initial capitals) and it’s still possible to find remnants of that terminology in current Autodesk documents. It’s also possible to find ‘Subscription’ and ‘subscription’ used interchangeably on the same Autodesk web page:

autodeskisitsubscriptionorsubscription

Minor quibbles aside, the important thing to note is that the term ‘subscription’ as currently used by Autodesk means something very specific. It means rental. When something is described as ‘subscription-only’ it specifically excludes ‘maintenance’ and other perpetual license customers. And that’s how the AutoCAD 2017.1 update was described:

autocad2017-1subscriptiononly

That subscription-only status of this update is what set me off. Preventing paying customers from accessing something that includes bug fixes is most unpleasant, and I felt obliged to say so. But it doesn’t appear to be the case. That subscription-only status is getting rubberier by the minute.

  • Autodesk states 2017.1 is “the first subscription-only update”. In addition to using the term ‘subscription’, being the first of something implies that it’s different to what happened before. That can’t mean that it’s available to all customers, because that’s what has happened with updates in the past. It also can’t mean maintenance customers can also access it, because that has happened for years for various enhancements, add-ins, productivity packs, etc.
  • Somebody as smart as Jimmy Bergmark (and that’s very smart indeed) is convinced that “even security enhancements and bug fixes are only available for subscription customers”.
  • There is no sign of 2017.1 on the public AutoCAD Downloads page.
  • As a maintenance customer, I didn’t receive notification of the update. However, I can see it in my Autodesk Account portal. It was apparently released quietly on 15 September 2016 for most languages, with French and German lagging behind for whatever reason.
  • The download is not restricted; anybody with the URL can download it (e.g. English 64-bit exe). I have no idea how Autodesk intends to restrict this update to certain customers.
  • I have been informed privately by an Autodesk person who should know that customers on both subscription and maintenance will get the update.

This confusion can be traced to Autodesk’s decision to call rental ‘subscription’, a name that already had a significant, long-established and totally different meaning in the Autodesk lexicon. Because I can’t think of a logical reason for Autodesk to do this, I strongly suspect the idea was to obfuscate the changes to licensing by deliberately confusing customers. If so, congratulations, it worked. I’m baffled.

Edit: Heidi Hewett has updated her post:

autocad2017-1notsubscriptiononly

Although the Preview Guide still only mentions Subscription (which shouldn’t have a capital these days, but does here), I think that’s pretty much cleared up the confusion now.

On a positive note, I’d like to point out that Heidi has done these sorts of guides for years and always does an excellent job. Based on past experience, I would say it would be likely that she was simply passing on in good faith what she had been told, rather than being the origin of the incorrect information.

Autodesk excludes maintenance customers from AutoCAD 2017.1 update (Edit: actually, it doesn’t)

Edit: it turns out that when Autodesk said this was subscription-only, that wasn’t true. See my later post for details.

A mid-term update containing a bunch of useful stuff, AutoCAD 2017.1 is the first update made available exclusively to subscription customers (renters). I’d love to tell you about how great this update is, but I can’t because I’m not allowed to use it.

If you’ve been a loyal customer of Autodesk for 30 years and have paid countless thousands for your software, upgrades and Subscription (now called maintenance) over those years, even if you are right now still paying maintenance to keep that software up to date, Autodesk is rewarding that loyalty by waving a virtual digit in your general direction. If you’re not a renter, you’re now officially a second class customer.

Autodesk is going to progressively hammer in a wedge to try to separate customers from their perpetual licenses. AutoCAD 2017.1 is the thin end of that wedge. Expect worse to come.