Tag Archives: Offer

Autodesk subscription offer – the first cracks appear in the all-rental wall

Thanks to a comment by Fabien, I recently learned of a new offer from Autodesk to convert perpetual licenses to subscription (rental). It turns out that this is a global offer from 7 February to 20 April 2018.

Such offers come and go from time to time and most are not particularly interesting. This one is. Not because you’ll want to take it up (you probably won’t), but because of what it represents.

Here’s how it appears on Autodesk’s site:

What’s really interesting about this offer is this sentence:

If you are not satisfied, you can switch back to your perpetual license.

With that, we see the first solid acknowledgement from Autodesk of the reason so many existing customers are stubbornly refusing to put themselves in rental chains, despite the cracking of price whips. Customers like their perpetual licenses and are unwilling to give them away. This offer holds out the promise that they can be returned. There’s a lot of fine print that severely restricts the utility of the offer and I can’t see many savvy customers falling for it, but at least an attempt (however weak) is being made to placate perpetual license holders.

The offer is explained in the FAQs and more detail is available in the Terms & Conditions page. Here’s an overview of how it works.

  1. You trade in your perpetual license of AutoCAD, LT, Suites or several other products using this link. These can be out of maintenance and could date back to Release 14 from 20 years ago*.
  2. You sign up for subscription of an Industry Collection for 1 or 3 years. Of course, the subscription cost of an Industry Collection is pretty substantial and way more than the maintenance costs of, say, AutoCAD – even with Autodesk’s promised price hikes. For example, the AEC Collection is USD $2,018 a year under this offer, down from $2,690.
  3. The subscription cost is 25% less than it is without this offer. It’s still pretty expensive, particularly as you can’t use more than two applications in the Collection at once, but it is a bit less than is would be,
  4. You are given the option of backing out of the deal (“switch back” is the Autodesk term) within a specific 30-day window if not satisfied. That window is at the end of the full 3-year period, or after 2 years if you sign up for 1-year increments. You get your perpetual license back. You don’t get your money back.
  5. If you switch back, it’s up to you to make sure you have the media and necessary details to reinstall the old release.
  6. If you switch back, you don’t get to resume maintenance if you had it. If you didn’t already have your product under maintenance, this is fair enough.
  7. If you switch back, your perpetual license is reverted to its original release. Oh, except if you started at 2017 or 2018. In that case, you are reverted to 2016.

That last part is a nasty, petty detail. Somebody at Autodesk actually thought that up, presented it at a meeting and had it accepted as a good idea. That’s the mentality we’re dealing with here. It’s not so much “How can we better serve customers so they want to give us more money?”, it’s more “How can we hurt customers who don’t do what we want?”

If you take up this offer, the idea is to get you using the new software because there’s a bit less finality about the decision. You might be so impressed by it that you forget you’ve discarded your escape plan and signed yourself up for perpetual payment of large amounts. You might also find that you’ve saved all your files in new formats and can’t go back without losing data, particularly if you’ve used the vertical products that really, really don’t like having their drawings saved back to earlier releases, even within the same nominal DWG format. So maybe there’s a bit more finality than first appears, but by the time you’ve got to that stage it will be too late.

Is this an attractive offer? Only if you were going to subscribe to an Industry Collection anyway and have an old dormant license hanging around. In that case, go for it, save 25% of a large amount. Other than that, it’s really not an offer that will have widespread appeal and I suspect most customers will give it a miss.

Autodesk is getting increasingly desperate to get its long-term customers on the rental gravy train, and the cracks have started to appear in the subscription-only facade. This offer’s not great but I suspect the offers are only going to get better as the “Another great quarter!” patter wears thinner and thinner. The offers will have to get much better than this effort to persuade your average perpetual license owner to get on board.

* Pedantic historical point: in multiple places, this promotion associates Release 14 with the year 1998, implying this is the earliest year you could have bought an eligible product. This is incorrect. Release 14 was released in February 1997 and was replaced by AutoCAD 2000 in March 1999.

New Autodesk subscription idea – any interest?

Let’s say Autodesk came up with a new offer for customers currently under maintenance. Let’s say you could switch to subscription (rental) with the same price as maintenance, locked in with no increases for three years. In addition, you get to retain, but not upgrade, your perpetual license.

Let’s say you’re on maintenance which is up for renewal later this year. You currently have a perpetual license of AutoCAD 2018. If you accept this offer, you will always retain that AutoCAD 2018 license. You switch to subscription and pay the maintenance amount for one to three years. Your subscription fee is guaranteed to rise by no more than 20% total by year five.

As long as you continue to pay subscription, you get access to new releases (2019, 2020, etc). If you decide to no longer renew your subscription at any point, you can no longer use the new releases, but you can still fall back on using your perpetual license, which remains as AutoCAD 2018. The use of the software would be subject to the usual fair use restrictions, e.g. during the subscription period you can’t use AutoCAD 2018 on one PC while using AutoCAD 2019 on a different one.

Would you be interested in such an offer?

I’ve added a poll, so please vote and feel free to comment on why you would or would not be prepared to switch under those circumstances.

Would you be interested in switching to Autodesk subscription if you could keep your old (non-upgraded) perpetual license?

  • Yes (24%, 32 Votes)
  • Maybe (25%, 33 Votes)
  • No (51%, 67 Votes)

Total Voters: 132

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Please note that this offer is entirely hypothetical. It arose from a recent telephone conversation with a non-Autodesk person. I have no inside information that suggests Autodesk is considering such an offer.

New Autodesk subscription offer to perpetual license holders

Don’t get too excited. Autodesk’s recent attempt to price-force perpetual license maintenance customers onto subscription (rental) remains in place, unchanged and just as unappealing as before. If you’re one of those customers, there’s nothing new here of interest to you.

This new offer, at 30% off the normal but extremely high subscription price, is at first sight even less appealing than the approximately 60% saving that the above offer provides. But it’s aimed at different customers, and there’s the remote possibility that such customers might find it worthwhile.

The new offer is called FY18 Q1 Autodesk – Global Field Promotion and is aimed at bringing into the rental fold those customers who hold old perpetual licenses that are not on maintenance. If you have an old AutoCAD Release 14 lying around that has never been upgraded, or an AutoCAD 2007 license where you allowed the maintenance (then called Subscription) to lapse, you can trade it in for the 30% discount on a wide range of subscription products. You need to surrender the perpetual license, and you need to pay up front for three years of subscription. Read the FAQ for details.

Three years of subscription at only 30% off is actually really expensive. Depending on what product you go for, it could work out about the same as a perpetual license cost back when Autodesk used to sell software. Despite that substantial investment, you’ll be left with nothing whatsoever at the end of the three years. You will then be expected to wear a huge increase in rental costs when the 30% discount wears off. It works out to a price jump of about 43%, plus whatever price rises there may have been in the meantime.

Excited by this offer? No? Gee, you people are hard to please!

Don’t dismiss it out of hand, though. If you meet all of the following conditions, you should still consider this offer:

  • You have an old non-upgraded eligible license lying around.
  • You’re never going to want to use that license ever again.
  • You have an absolute need to rent one of the Autodesk products on offer, and would otherwise be paying 100% rather than 70% of the huge subscription fees.
  • You can afford to pay those high fees in advance for three years.
  • You’re definitely going to need that rented software for more than two years (otherwise it works out cheaper to rent at 100% for 2/3 of the time).
  • You can budget for a huge price increase at the end of the three year period, assuming you’re going to use the software long-term.
  • You don’t think Autodesk is going to come up with a more attractive offer later.

Maybe the Autodesk execs think this is going to be perceived as an attractive offer, but if they do there’s a fair bit of self-delusion going on. I fully expect this campaign to fail to live up to Autodesk’s expectations, and much better offers to follow later, in order to try to tempt the remaining hold-outs. No guarantees, obviously; it’s your money and your gamble.

Having had a good look at what Autodesk execs have been telling the stock market, I’ve been expecting this move. Old perpetual license holders have been identified as a target market. However, I was expecting the move to come later than this, and I was expecting the terms of the offer to be much more attractive. Are perpetual license converts thinner on the ground than Autodesk expected? Is Autodesk getting desperate for cash to make this quarter’s numbers look better than they otherwise would? Wouldn’t surprise me.

When is a global offer not a global offer?

Confusion reigned yesterday when my post on Autodesk’s “FY17 Q3 Global Field Promotion” assumed that Global meant what it said, and the offer made to me in Australia was the same as in other countries. That was a mistaken assumption, and I have updated the post to reflect that; my apologies for the confusion.

That said, it was a not entirely unreasonable assumption given the superficial similarity between offers worldwide and the following in Autodesk’s fine print in multiple global Autodesk sites:

Offer available from 7 August 2016 through 21 October 2016 worldwide with the exception of the Crimean Peninsula of Ukraine, Cuba, Iran, North Korea, Sudan and Syria

The situation is not that simple. There are two very different offers that look the same at first glance. People in some countries get a much better offer than others. The offer I discussed in yesterday’s post allows you to continue your ownership and use of the old perpetual license serial number you submit:

Can customers continue to use the perpetual license after they purchase the discounted 3-year subscription?
Yes, customers may continue to use the license they have submitted, however they may not submit the license a second time to receive a promotional discount.

Let’s call this offer A. From the Q&A section of the Australian offer page:
autodeskperpetualoffer01The offer available to most of the world is much weaker. You must trade in your old perpetual license serial number and not use the software any more, even after the rental period is over:

Can customers continue to use the perpetual license after they purchase the discounted 3-year subscription?
No. As part of the terms and conditions of this offer, the customer agrees to trade-in the eligible perpetual license serial number(s) and no longer use any seats associated with that serial number(s).

Let’s call this offer B. From the Q&A section of the Americian offer page:
autodeskperpetualoffer02Who gets which offer?

  • Australia and New Zealand gets offer A. Hong Kong, offer A. The Singapore offer is confusing because the expected “You get to keep your perpetual license” dot point is missing from the top of the page, but if you burrow down a little you will discover it is also offer A.
  • The Americas and Europe (mostly) get offer B.
  • The Russian, South African and Turkish sites have no apparent sign of either offer. Maybe I’m not looking hard enough.

So it looks as if only the Asia Pacific region currently gets offer A. I use the disclaimer “currently” because the Internet is not a fixed resource and things change. If you’re reading this post after October 21, you’ll probably find my links point to some completely different offers and things will get even more confusing.

Why do things differently in different places? In the past, Autodesk has used the Asia Pacific market experimentally for possible new marketing strategies, and I suspect that’s what’s going on here. My guess is that Autodesk is testing the waters in one major market to see if slashing prices and  letting people keep their perpetual licenses is enough to win significant numbers of customers over to rental.

Autodesk is entitled to make whatever offers it likes, wherever it likes. However, two different region-limited offers that look the same, both called a global promotion, and both carrying fine print saying they are available worldwide? That’s going to confuse people, even without my help.

Autodesk’s mixed rental and perpetual license offer

If you’re on Autodesk’s mailing list you have no doubt been receiving increasingly desperate offers aimed at tempting you into renting your software. None of those have really been worth a mention, but the latest Autodesk FY17 Q3 Global Field Promotion for Asia Pacific contains something noteworthy. It acknowledges the value of perpetual licenses and allows you to retain yours. Don’t get too excited though, it does not apply in other regions and only allows you to retain your old  license. Anything new is still rental-only.

Here’s how the offer works. Let’s say you have an old copy of AutoCAD lying around. This acts as a magic token allowing you access to cheaper rental. Autodesk halves the cost of a 3-year subscription (rental) of pretty much anything (doesn’t have to be AutoCAD, it could be something much bigger) and your old AutoCAD perpetual license remains unaffected. You can keep using Release 14 during and after the 3 year period. The offer applies to existing licenses of a wide range of products from Release 14 to 2017 (see here for details).

Why you might take up this offer

  1. It’s cheaper than full price rental
  2. At the end of 3 years you still have your old release and can continue using it
  3. The usual subscription/maintenance benefits apply (e.g. home use, access to 3 releases back, etc.), but this is only a factor if you’re not currently on maintenance

Why you might decline this offer

  1. You have to pay up front for 3 years (not too terrible)
  2. You have no idea what’s going to happen to the software in the next 3 years
  3. At the end of 3 years, if you want to keep renting, your annual software cost is likely to take a minimum 100% price hike
  4. At the end of 3 years you will have no software to show for your investment (other than your old release which you already had anyway)
  5. Although it’s cheaper than full-price rental, it’s still more expensive than maintenance (formerly called Subscription) on an existing perpetual license
  6. It’s obviously substantially more expensive than just using your old release without maintenance, which costs you nothing
  7. There are likely to be compatibility issues between the old release and any drawings you create with the new release, particularly with the vertical products
  8. You have to be connected to the Internet to let your product phone home at install and every 30 days thereafter
  9. There are competing products that allow you to buy a perpetual license and maintain it for 3 years for substantially less than this half-price offer

The idea is for Autodesk to get you all aboard the gravy train and carry you off to destination rental. You will be so excited by the ride that you will leave your old software behind, and the fact that you can still go back there if you want will be irrelevant. Why would you want to? Your new destination will be so much better.

The problem with this scenario is that Autodesk has added precious little in the way of genuinely useful, productive, complete features to AutoCAD in the last few years, while making some things worse. For example, any AutoCAD 2017 user who fires up an old release (the older the better) is likely to be hugely impressed by how quickly they can start drawing with that rusty old thing. The comparison isn’t nearly as impressive going the other way. I suspect the new destination isn’t going to be quite as irresistible to customers as Autodesk would like to think it is.

Is anybody out there tempted by this offer?