Tag Archives: Perpetual licenses

Has Autodesk broken your old licenses?

I’m seeing multiple recent complaints from people stating that their older but perfectly legal perpetual license AutoCADs are being broken. They’re also reporting that Autodesk is being less than helpful about fixing the problem in any reasonable kind of timeframe. Whether this is a deliberate act or yet anotherthis won’t happen again” screw-up is difficult to determine, but either way it’s pretty obnoxious. People paid a lot of money for this software and they deserve to have it working.

Original Red A figure copyright Autodesk, Inc. This derivative image was created from scratch using BricsCAD V18 and falls under fair use (commentary, criticism).

If you have an old release lying around for whatever reason, maybe you’d better check to make sure it’s not broken.

Autodesk, if you can’t get your licensing act together, I hope you’ve budgeted enough to provide full refunds to everyone with an old license. Millions of them. Thousands of dollars each. That’s quite a few billion dollars. No? Don’t have that in the piggy bank? Better get cracking, then.

To those people stuck without a working AutoCAD who need to get work done while fighting Autodesk, regular readers of this blog will be able to tell you know where to go to get 30 days’ relief. File under told you so.

Has this happened to you? Please comment and provide the details.

Why One AutoCAD is smart strategy

OK, so Autodesk may have blown the AutoCAD 2019 rollout, triggering an apology from CEO Andrew Anagnost.

OK, AutoCAD 2019 may have the smallest set of significant advances in the history of AutoCAD releases. If you’re wondering, I give it 1/10. The “there can be only one” hype could easily refer to meaningful improvements to the product per year. This year’s improvement is… drawing compare!

Still, AutoCAD 2019 is a significant release for reasons beyond the content of the core product. An examination of the One AutoCAD strategy reveals a collective corporate mind that’s smarter than it’s being given credit for.

In case you’ve missed it, the idea behind One AutoCAD is that if you subscribe to AutoCAD, you can now also get a bunch of vertical variants of AutoCAD thrown in, renamed as “Toolsets”. You need to ask for it, and it’s for renters only, no perpetual license owners need apply. Oh, and Civil 3D isn’t part of the deal.

This concept has been received less than enthusiastically among respected independent observers such as Ralph Grabowski and Robert Green. I’m going to go against the trend a little and point out several ways in which this is a smart move for Autodesk.

  • It represents the first time Autodesk has had anything of substance to positively differentiate between maintenance and subscription. Until now, it’s all been negative: give away your perpetual licenses to avoid forthcoming maintenance price increases.
  • It provides some substance to Dr Anagnost’s “give us a year to show the value of subscription” request to customers. OK, it may have taken a lot more than a year, but at least it’s now possible to point to something that customers can gain by subscribing, rather than having the embarrassment of an empty promise hanging around.
  • It acts as an effective distraction from yet another price rise (7% on top of Autodesk’s already sky-high subscription costs). Yes, this new price still applies even if you don’t use the toolsets. Yes, it still applies even if you’re a Mac user who doesn’t have these toolsets available.
  • It will almost certainly be used as justification for future subscription price rises. How can you complain about a few more dollars when you get all those products included in the price?
  • This stuff has already been developed to a point that Autodesk considers mature (web apps excluded), and it isn’t costing Autodesk anything to “give it away”.
  • It means that the glacial or non-existent rate of improvement of AutoCAD and its variants suddenly appears less important. How can you complain that nothing worthwhile has been added to your AutoCAD variant this year when you now have access to hundreds more commands than you used to have? This line has already been tried with me on Twitter.
  • It provides a marketing counter-argument against competitors who sell DWG-based AutoCAD-compatible products that provide above-AutoCAD standards of functionality (e.g. BricsCAD).
  • If an increased number of users start using the vertical variants, there will be increased pressure on those competitors to handle the custom objects created using those variants. This will act as a distraction and reduce the ability of those competitors to out-develop Autodesk at the rate that has been occurring for the past few years.

There are a couple of flies in Autodesk’s One AutoCAD ointment:

  • Critical mass – it has yet to be seen how many customers are so won over by this concept that they sign up for it. Remember that it’s only available to a minority of customers anyway, and if the bulk of customers remain reluctant to give up their perpetual licenses then all this is moot. If the move-to-rental numbers are small, then the anti-competitive nature of this move is negated. The marketing gains still apply, though.
  • Interoperability – traditionally, the AutoCAD-based verticals add custom objects to the core AutoCAD objects, which when opened in vanilla AutoCAD or another vertical, appear as proxy objects that either don’t appear or will provide very limited access. Improved but still limited access can be provided if Object Enablers are installed. Object Enablers are not always available for the AutoCAD variant you want to use. LT? Mac? Old releases? Forget it.This has always been a highly unsatisfactory arrangement. I have worked for a company that explicitly prohibits drawings containing proxy objects and rejects any it receives, and that has proven to be a smart policy. Also, the vertical variants of AutoCAD have always had hidden DWG incompatibilities built in. AutoCAD 2015 user? Try to use a DWG file that has been created in a 2017 vertical variant. Good luck with that, even though all those releases supposedly use 2013 format DWG. Paradoxically, you can expect to experience much better DWG interoperability with non-Autodesk products and their add-ons than you will with AutoCAD and its verticals, because the non-Autodesk products are forced to work with AutoCAD native objects. It remains to be seen how, when, or even if Autodesk addresses these issues.

In summary, this strategy has potential to significantly benefit Autodesk. Will it work? That will largely depend on how many customers are prepared to put aside their mistrust enough to hand over their perpetual licenses to Autodesk. That mistrust is mighty large (Autodesk’s been working hard for years on building it up) and recent sorry-we-broke-your-rental-software events have reiterated just how valuable those perpetual licenses are.

Autodesk has produced what it considers to be a very attractive carrot. Is it big and juicy enough to attract you?

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.

Battle of the Bullshit part 5 – Bentley back in the bad books

Having earlier earned my praise for raising its game in its PR battle with Autodesk, Bentley has unfortunately reverted to BS mode with its latest effort.

In its message “Upgrade your Autodesk Licenses – Top 5 Reasons Why You Have a Choice“, Bentley’s marketers have chosen to step beyond the facts. Bad idea.

Most of that page is just straightforward promotion of Bentley’s self-perceived strong points. No problem with that. But the first full paragraph? Hmm.

Here’s the first example:

Preserve the value of your Autodesk licenses that otherwise would be lost as a result of Autodesk’s decision to no longer offer or support perpetual licenses.

It’s true that Autodesk has decided to no longer offer perpetual licenses. It’s false to state that Autodesk will no longer support them. Perpetual licenses are fully supported with maintenance. Without maintenance, support suffers, but it’s still there. Of course, customers may be rightly fearful about the nasties Autodesk may introduce in future to “persuade” perpetual license owners into subscription subservience, but we’re not there yet and it’s misleading to imply that we are.

What else?

Your perpetual license is a valuable asset. But, if it cannot be upgraded and maintained, it loses all of its value.

It’s true that your perpetual license is a valuable asset. It’s misleading to imply that Autodesk perpetual licenses can’t be maintained. Maintenance is still available, although Autodesk is making it more expensive.

It’s misleading to imply that perpetual licenses can’t be upgraded. It’s true that Autodesk stopped selling upgrades to non-maintenance customers a while ago (having earlier priced them out of the market and then disingenuously citing lack of demand as the excuse for dropping them). But perpetual licenses under maintenance agreements can be upgraded (and are; it’s the biggest part of the deal). They’re obviously also being maintained, so Bentley’s not being fully frank there either.

Finally, a non-upgradable off-maintenance perpetual license does not lose all of its value. It’s still a valuable tool that is capable of doing useful work and generating income for years to come. That’s kind of the point of perpetual licenses; you can stop paying anybody anything and still use the product. In Europe you can even still sell the product.

Elsewhere, Bentley promotes its licensing flexibility. It’s true that Bentley’s continued support for perpetual licenses and availability of rental (term licenses in Bentleyspeak) means it’s 100% more flexible than Autodesk. That doesn’t make it all hunky dory in Bentley license land, though. I don’t see any mention of Bentley’s practice of rounding up your network license use to your detriment, allowing you to silently overshoot your license allowance, then sending you a huge punitive invoice at the end of the billing period.

To be fair, I wouldn’t expect to see that mentioned in marketing materials. But if you have a look at what Bentley customers have had to say about it, particularly from those people who have been over-billed because Bentley has counted license use unfairly, you’ll see that it doesn’t go down at all well with customers. So bear that in mind if you’re thinking of taking up Bentley on this or any other offer.

The rest of the marketing blurb seems fair enough, even if some of the clichéd stock photos are a bit groan-inducing. However, its effectiveness is severely curtailed by its failure to provide details of exactly what is being offered and under what conditions. As I noted with a previous Bentley attempt, curious customers are expected to fill in an online form to obtain information, and that’s a barrier.

It seems I need to repeat something I wrote in an earlier post:

Raise your game, people; we’re not all stupid out here. If you can’t support your argument with the truth, then your argument isn’t a good one and you need to rethink it.

I’m used to Autodesk doing dumb things because it has forgotten to learn from its own history, including pretty recent history in some cases. This episode seems to indicate that Bentley has the same problem.

Bentley, here’s some free advice. You don’t need to exaggerate in order to make Autodesk’s treatment of customers look bad. Autodesk is doing a magnificent job of that without any help. The facts are enough. Also, if you have a great offer, just tell us what it is. OK?

The big Bricsys interview 5 – perpetual licensing and choice

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

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

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:

Minority interest in keep-your-perpetual Autodesk subscription idea

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.

Dissecting Dieter’s perpetual points

I like Dieter Schlaepfer, we’ve been arguing for years.

Dieter and I have never met in person, but online we go back to the CIS:ACAD CompuServe days of the early 1990s. Dieter’s a good guy who has done a splendid job with AutoCAD documentation content for decades. He is genuinely interested in improving the product and customer experience, and has done a great deal to do so over the years.

Dieter’s responsible for the most-commented post on this blog, AutoCAD 2013 – An Autodesk Help writer responds with 164 comments and was a heavy contributor to the 95 comments on the recent AutoCAD 2018 – why did the DWG format change? post.

If you read the comments here, you’ll know that Dieter is the only Autodesk person brave enough to put his head above the parapet and enter into discussions here in recent times, even though he’s not doing so in any official capacity. Autodesk’s PR people give me a wide berth and the Autodesk view would be completely unrepresented here if not for Dieter. He’s prepared to put his hand up and say, “But what about this?” when it’s an unpopular viewpoint and nobody else is prepared to say it. Props to Dieter for that.

Among Dieter’s many recent comments, he outlined 12 considerations in the rental v perpetual argument. Myself and others have been having fun eviscerating his tortured pub analogy, but his more serious arguments deserve a more considered response than can be comfortably provided in a comment, hence this post.

Let’s take Dieter’s considerations one by one. Bear in mind I’m approaching this from a long-term Autodesk customer point of view. You may look at things differently, and that’s fine.

1. Cost – if a rental, lease, or membership were low enough in price, almost everyone would do so (at a dollar a month, heck, I’d lease my shoes)

Fantasy argument. If Lear would hire me a private jet for $1 a month, sure, sign me up. The reality is that rental costs more, except in the short term. That’s why companies rent things out: to make money. That’s why Autodesk is doing it; it’s an attempt, however hamfisted, to make more money. On cost, rental loses.

2. Business model, terms and conditions, and their consequences

Vague. But given the terms and conditions attached to Autodesk rental (standalone users must use a terrible licensing system) and the consequences (software stops working the instant you stop paying), rental loses big-time here.

3. Quality of fulfillment – this is to your point

Not sure what Dieter means here. ???

4. Tax consequences

This varies from place to place. I can get a 100% write-off whether buying a perpetual license, maintaining it or renting it. I may want to get a bigger write-off sooner, or not. Neutral.

5. Opportunity cost – by tying up a lot of cash, what potential opportunities do you lose?

Depending on a business’s cashflow and other circumstances, this is a possible valid argument. However, only in the short term. Because rental costs more in the long term, it costs you more in potential opportunity in the long term. Overall, rental loses.

6. Financial accounting – rental, lease, or membership costs can easily be assigned to each project and billed to each customer

If I don’t have the need to do that, it’s irrelevant. But even if that’s the way you need or prefer to do things, it’s still only partially true that rental can be a benefit. Let’s say you have won a project that is planned to take 9 months and rent Autodesk software for a year: it costs you $3000 and you pay up front (because you’re not insane enough to pay Autodesk’s monthly rental prices). You finish the project in 10 months. You use that software for other smaller projects that crop up during that 10 month period, and after it’s over. Quick, how much of that $3000 do you apportion to each project? See, it’s not as simple as it appears.

It’s really not difficult to have perpetual license software costs handled in the same way as overheads and other long-term costs that can’t be directly attributed to a project. You’re not going to be able to sack your accountant thanks to software rental. Neutral.

7. Flexibility – you can easily increase or decrease the number and types of licenses for several (not just one) products

Ah, flexibility. Let’s say I’m convinced by Dieter’s other arguments and convert my perpetual license to rental under the current so-called “discount” offer. In doing so, I throw away my flexibility. I can’t ever stop paying or my software stops working. Down the track I may not need that license for a while, but even then I can’t hop off the rental train because if I do that and then hop back on, my software costs will treble (roughly – it varies).

As for the several products thing, Autodesk has been pushing customers into suites and collections where a high price is paid for a block of products. Can you drop back from a collection to a product or two for a while, then back to other products or up to a collection again? Sure, Autodesk is very flexible. Just forego your “discount” and pay an astronomical increase, no problem.

Autodesk has been progressively removing its customers’ flexibility for decades and will undoubtedly continue to do so as long as it thinks that will make more money that way.

So please don’t come the rental=flexibility argument with me. On flexibility too, Autodesk’s rental loses.

8. A truly perpetual software license requires you to maintain obsolete hardware and old operating systems, and discourages the adoption of new technologies

No it doesn’t. A non-upgradable license might do that, whether perpetual or otherwise. That doesn’t apply to perpetual licenses under maintenance. It didn’t even used to apply to perpetual licenses not under maintenance. Whose fault is it that perpetual licenses not under maintenance are no longer upgradable? Autodesk’s. False argument.

9. Perpetual licenses put most of the financial burden on new customers rather than spreading it more fairly between all users

Actually, with perpetual licenses the financial burden is much more fairly spread. What costs more, developing a product from scratch or maintaining it? Perpetual license purchasers pay a higher amount for the initial purchase, just as the developer pays a higher amount for the initial development. The developer is fairly rewarded for providing the product for the customer to use. Following that, the developer is fairly rewarded for maintaining and improving it.

But I really hope you’re not trying to convince people that Autodesk is price-forcing customers onto rental in order to be fairer to them, because I think incredulity would be the appropriate reaction. False argument.

10. Perpetual software licenses create “a long tail” of product versions, making data sharing between users more difficult

Perpetual software licenses that are maintained do no such thing. If a vendor provides good value for that maintenance payment, then people will maintain the software. Autodesk maintenance value for money has been dreadful in recent years, leading to people dropping it. Improving Autodesk’s performance in that area would reduce the length of the tail. Making maintenance value for money even worse by racking up prices will lead to people dropping it and sticking on old releases much longer. Autodesk’s rental push is lengthening the tail, not shortening it.

Incidentally, there is a new benefit for subscription customers with multi-user (network) licenses. Guess what? Five releases are now supported rather than four. Yes, Autodesk rental is literally lengthening the tail. False argument.

11. Perpetual software licenses encourage users to use less secure software and operating systems in a time when cybercrime and espionage are mushrooming

See 10 above. False argument.

12. Providers of perpetual licenses have less incentive to support long-time customers than providers of rental, leased, and membership business models do

Absolutely wrong. This is literally the exact opposite of observed reality.

You know what model really provides an incentive for vendors to improve the product? Perpetual licenses with optional paid upgrades. With the perpetual/upgrade model, if there’s no improvement, there’s no ongoing income. But that model was too much like hard work. Easier to just remove our options over the years to manipulate customers into paying more and getting less. Autodesk priced that model out of the market and then killed it off because it wanted to get people paying for just using the software rather than as a reward for improving it.

It’s proven by history. The closer Autodesk got to the all-rental model, the worse the rate of improvement became. As an improvement incentive, rental loses.

There you go, Dieter. Rental loses on five considerations and wins on none. And I’m being generous by considering points 10 and 11 as neutral.

Feel free to add your own observations on perpetual v rental. If you want to have a go at Dieter’s arguments or mine, go for it. I just ask that you play the ball, not the man.

You can still buy Autodesk perpetual licenses in Europe

Yes, you really can still buy Autodesk perpetual licenses in the European Union. You just can’t buy them from Autodesk.

Where can you buy those licenses? From other customers who don’t need them any more. Unlike some jurisdictions, the EU respects the doctrine of first sale for computer software. This means sale of pre-owned software is allowed, and any EULA restrictions attempting to prevent that are invalid. This was established in 2012 by the EU’s highest court, The Court of Justice for the European Union (CJEU) in the case of UsedSoft v Oracle.

Autodesk and all other software vendors in EU countries have to respect that, so the perpetual license remains valid after transfer to the new owner. The previous owner must be able to document the validity of the license and must delete or disable their copy of the software upon transfer.

While I have no personal experience of the transfer process, according to what’s being said in this CGTalk thread*, it’s all very easy. Fill out a form and you’re done. However, I suggest you contact your local Autodesk office for the details. Don’t bother to ask AVA, she doesn’t know.

I’m no EU lawyer, but my reading of the judgement is that Autodesk is not obliged to transfer any maintenance contracts along with the perpetual license (clause 66). It is, however, obliged to consider the software to be upgraded to the original owner’s level under any maintenance arrangements (clause 67). This means the software license will be permanently stuck on the last activated release prior to the sale. Companies with a single license permitting use by 50 users and who want to shed 20 of them can’t split off and sell those 20 (clause 69). Again, check with your local Autodesk office for confirmation.

If you’ve been through this process, please comment on your experiences for the benefit of others.

Software licenses within the EU are valid in all EU countries, so it would appear there is nothing preventing, say, a German buying a used AutoCAD license from the UK, at least until Brexit is complete. It is unlikely that an EU license will be legally valid outside the EU, as outside Europe Autodesk only permits license transfers under certain circumstances described here.

It’s interesting that this market for perpetual licenses exists, but Autodesk has locked itself out of its own market! Indeed, by ending the sale of perpetual licenses, Autodesk has made them a rarer and more valuable commodity.

Autodesk customers are still revolting

I described before how customers are outraged by Autodesk’s attempt to price-force them onto subscription (rental). That’s still happening. The Autodesk Community forum moderators are still vacuuming up threads and Ideas submissions and moving them to the Moving to Subscription forum, which despite its obscurity is still active with some threads now having hundreds of posts.

Other discussions in various non-Autodesk locations are extending over many pages of comments. Almost all comments are highly critical of Autodesk. A large portion of these customers say they are abandoning Autodesk. Many are discussing the specific competitors’ software they are moving to.

In addition to the Autodesk forum staff confining commentary to a quiet corner, another way of keeping the public noise down is by directing people to talk to their resellers. Yesterday, I did just that. The rep who came to see me is a good guy from a great reseller and I was not unkind.

Autodesk obviously knows it’s hard to sell such a bad deal and is pushing its resellers hard to get with the program. They are being briefed and provided with PowerPoint presentations to help sell the deal. My reseller says he’s had to deal with “many angry customers” and feels like the meat in the sandwich. He did his very best to present the deal in its best light, but the poor guy is too honest to make it sound good. He has my sympathy.

There were some differences between the numbers he provided and what I’ve described based on Autodesk information. The major pieces of new information I gleaned (assuming my reseller is right) were:

  • For people who surrender their licenses and switch to subscription, the cost that’s locked in for the first three years is 5% more than maintenance, not the same price.
  • After the three-year lock-in, the year four subscription price rise will be about 15%.
  • After that, nobody knows.

The net effect is slightly worse for subscription than it looked before the meeting, but not hugely so. It’s not worth redoing my graphs.

Switching to subscription is still just a really bad deal that’s being presented as a good deal by comparing it with another deal (maintenance) that’s being artificially worsened. Sorry, but I’m not just comparing it with Autodesk’s other deal. I’m also comparing it with the deals provided by Autodesk’s competitors. According to that comparison, both Autodesk’s deals are shockingly poor. The same happens if I compare Autodesk’s subscription deal with rental success-story Adobe’s pricing.

I explained to my reseller the problem with surrendering perpetual licenses. Autodesk is requiring a decision to be made with permanent, irrevocable consequences, based only on short-term information. He said the message from Autodesk is that further information isn’t going to be forthcoming because, “No other company is going to let you know its prices five years in advance.” My reply was that no other company is expecting me to give away what has already been paid for.

Last week, I had a telephone conversation about an Autodesk rep about this issue. Among other things, I told him:

You’re asking me to give you my balls in a bag in the hope that you won’t squeeze too hard.

 
It ain’t happening.

Welcome to the new bosses…

…same as the old Bass.

If you’re hoping the change at the top of Autodesk is going to result in a change to the all-rental business model, abandon that hope now. In this nodding-heavy video, temporary co-CEOs Amar Hanspal (product guy) and Andrew “Baked Beans” Anagnost (marketing guy) confirm it’s full steam ahead. Not unexpected, really.

If either of these guys is selected as CEO (my money’s on Amar), the rental push will continue. Don’t expect to be saved by an incoming CEO, either. The Autodesk board won’t appoint a non-believer.

If you won’t abandon your perpetual licenses, you’ll need to abandon Autodesk.

Chat to Autodesk about being pushed onto rental

I’ll post later about Autodesk’s oftpredictedhere but just-announced plan to use price increases to push you out of your perpetual licenses, and the execrable spin being used to sell it.

This post is just to let you know that Autodesk has kindly provided a forum in which you can discuss this issue. Why not wander over there and have your say? Autodesk is deaf and blind on this subject so it won’t make a difference, but at least you might feel better to have your say and let others know they’re not alone.

Here’s the link to the Moving to Subscription forum. Here’s the welcome message.

Hot tip: keep a text copy of what you have to say. If, as happened before, Autodesk gets heavy with the censorship scissors and slices through your statement, you can repost it here as a comment.

It’s worth noting that Autodesk did this talk-to-us-about-the-changes thing earlier with the Perpetual License Changes forum. Good luck discovering that forum now without that link; it was merged/hidden/made read-only/whatever. So if you want your view on this subject to stand a better chance of long-term visibility, you might want to repost it here anyway.

Here’s an early thread, This is crappy. Here’s another one, Autodesks new policy Forcing perpetual license holders to subscriptions stinks! There are other threads popping up in other forums, which I expect might get collected up and moved to the new forum.

A series of Autodesk statements

Here are some statements from Autodesk about not having any plans to do some things. Things that the more paranoid among us suspected were always in the pipeline. Things that seemed to be just joining the dots along a predictable path Autodesk appeared to be taking. Things that later ended up happening. But nevertheless things that were, apparently, unplanned.

Simplified Upgrade Pricing FAQ, July 2009:

Autodesk does not currently have any plans to eliminate upgrades or cross-grades or make Autodesk Subscription* mandatory.

 
Callan Carpenter, May 2010:

…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.

 
Carl Bass, August 2013:

Because we’re starting in a different place than Adobe, we don’t feel the need to force people, as they did, to go to these new license models and end perpetual licenses.

 
It is a matter of record that Autodesk subsequently eliminated upgrades and cross-grades, went to the new license model (rental only) and ended the sale of perpetual licenses.

It’s refreshing to see that Autodesk isn’t too big into that old-fashioned planning thing. It fills me with joy to see that there is still room for such spontaneity in executive decision-making.

* Subscription was the name then used for what is currently called maintenance.

Autodesk perpetual license owners to get screwed big-time

Hidden in amongst a bunch of the usual highly dubious subscription statements from Carl Bass is an announcement that spells doom for Autodesk perpetual license owners. I will resist the temptation to skewer Carl’s spin (for now) because this announcement is much more important:

Bass also confirmed that the company plans to converge the two existing subscription models — maintenance and product subscriptions — into a single offering over the next two years. “If you look out to fiscal year 2020, we want to be in a place where, first of all, we have a single kind of offering with a single back office and infrastructure to support it, one that will be a combination of product subscriptions as you see them plus a consumption model on top of it. That’s where we see the business heading.

“Along the way, it’s how do we motivate customers to move from one model to another in the program, what are the price points, and how does that transition work? In our mind, getting to a single model is really important. It will give the best service to our customers, it will be the most affordable for us to have, [and] we can start getting rid of some of the systems that were designed for a different era and concentrate on giving a world-class experience to users.”

Translation: Autodesk is going to drive up prices of maintenance subscription (perpetual license keeping-up-to-date fee) to match the much higher prices of product subscription (rental). Maintenance subscription will then be merged into oblivion. Your return on your long-term investment in Autodesk software will be zero. Your reward for decades of loyalty to Autodesk will be to have your software costs blown through the roof.

If you’re not already making plans to abandon the Autodesk ship, you really need to do so now. Don’t say I didn’t warn you. Don’t say Carl  didn’t warn you.

Get out or get screwed big-time. I mean, get out or get motivated to transition into a world-class experience.

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.

Any BricsCAD users out there? v.2016

Back in 2010 I asked the question Any BricsCAD users out there? and there were a few of you who had tried to replace AutoCAD with BricsCAD. Most who responded had made the change successfully, others not so much.

Six years on, the situation is different. The fact that you can’t buy a permanent AutoCAD license any more has prompted some Autodesk customers to look more seriously at alternative vendors who do provide that option. Bricsys is one of those vendors, and their DWG-based AutoCAD alternative BricsCAD has improved way more rapidly than AutoCAD over the same time period. No, that isn’t a guess, I’ve been keeping an active eye on things. BricsCAD today is by no means perfect, but it’s impressive in many ways. LISP compatibility and performance are excellent, for example. BricsCAD v16 superior to the also imperfect AutoCAD 2017 in several areas, despite the total cost of ownership being significantly lower.

Here’s the question I asked back then:

I would be very interested to hear from any of you who have adopted BricsCAD (either partially or fully replacing AutoCAD or AutoCAD LT in your organisation), or at least seriously investigated using the product.
 
Why did you investigate changing over? How far have you gone? What are your experiences? What are the pros and cons? How is performance? Reliability? Bugs? Ease of use? Familiarity? Support and other aspects of customer service? Total cost of ownership? Are you experiencing interoperability problems when exchanging drawings with Autodesk software users? How did you go with incorporating in-house customisation and third party tools?

How would you answer that question today? Would you be interested in me providing more posts about BriscCAD, such as practical experiences with attempting a transition from AutoCAD?

Battle of the Bullshit part 4 – Bentley tells the truth

Behold, the latest episode in the Autodesk versus Bentley PR battle over perpetual licenses versus rental!

Bentley has issued a response to Autodesk’s response to Bentley’s response to Autodesk’s move to all-rental software. This is entitled Bentley Responds to Autodesk – You Have a Choice. I have already dissected Bentley’s and Autodesk’s previous responses and found neither of them entirely truthful.

So, how does the latest effort from Bentley shape up? Very well. It’s pretty much spot-on for accuracy. There’s nothing that could be described as disingenuous, misleading, or even exaggerated. I encourage you to read it and make up your own mind.

Bentley PR also invited me in on a press conference call, having first invited my questions. Although I was unable to take part in that call, I have listened to a recording of the event and that was similarly free of issues. The Bentley executives were understandably presenting Autodesk’s licensing strategy in a negative way and their own in a positive way, but didn’t have to resort to anything underhand in order to do so. The facts were enough.

Here’s something I wrote in an earlier post:

Raise your game, people; we’re not all stupid out here. If you can’t support your argument with the truth, then your argument isn’t a good one and you need to rethink it.

I’m happy to report that Bentley has  raised its game and in my view it is winning this PR battle because it can  support its argument with the truth. It will be interesting to see if Autodesk is capable of the same.

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?