Tag Archives: Permanent license

New Autodesk subscription offer to perpetual license holders

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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.

Last chance to buy Autodesk software – should you take it?

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If, like me, you’ve been receiving increasingly eager Autodesk emails urging you to action, you’ll already be aware that Autodesk will end the sale of its last remaining perpetual license software lines on 31 July 2016. The End Time has already arrived for AutoCAD, so the only way you can now buy any form of AutoCAD perpetual license is as part of a Suite, and you must also commit to a maintenance plan. Of course, any Suite is substantially more expensive than AutoCAD, both in terms of initial cost and ongoing maintenance fees. However, if you only buy software and aren’t interested in renting it, this is your last chance to do so. (Or is it? There’s always the possibility that Autodesk will abandon its all-rental strategy in order to stave off its losses, in which case all bets are off).

In sales, this is known as the impending event closing technique. You can see it in action at car yards around the world. The idea is to encourage you to buy something while you still have the opportunity to do so, preferably without thinking too hard about whether it’s a good idea. In this case, is it a good idea? Let’s examine the pros and cons.

Pros

  • Last chance to buy a perpetual license. Maybe.
  • Cheaper long-term than renting. Maybe.

Cons

  • Very expensive unless you are likely to make use of multiple large components of the Suite.
  • Mandatory commitment to a maintenance plan, at least initially.
  • Unknown price vector for that maintenance plan. However, it’s safe to assume it’s not going to get cheaper over time.
  • Immediate obsolescence of Suites has already been announced.
  • The long-term value of any Autodesk permanent license is a big unknown.

Only you can make the call about whether a last-minute Suite purchase makes sense for you or your business, and that call can only be an educated guess at best. Nobody has any idea how well Autodesk intends to look after perpetual-only Suite customers when it would clearly prefer them to be rental-only industry collection customers instead. Based on Autodesk’s recent history, I would expect strong pressure to be applied to all perpetual license owners to persuade you to switch to rental. The experience is unlikely to be pleasant, particularly if you just stumped up big to buy Suite software.

Are you planning to take this last chance to buy Autodesk software?