Hagerman Blog

Moving to a Subscription Business Model: Changes for Autodesk Maintenance Customers

Posted by hagermancompany on Apr 3, 2017 3:45:27 PM

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Below is an open letter from Teresa Anania, Sr. Director, Subscriber Success, Autodesk:


We recently began communicating with our maintenance customers about pricing changes and an offer available over the next three years that makes switching to subscription a far more attractive option for many.

But, as with any change, we get that it doesn’t always feel welcome, and there are plenty of you on maintenance that have questions. So I’d like to address a few common concerns we’ve heard:

Why is Autodesk making these changes?

We believe subscription is the best way for everyone to experience our software. We’re focusing on building out and delivering a great subscription experience, and our pricing offers reflect our desire to encourage as many of you to become subscribers as possible.

What’s in it for you?

In a world where most of our customers access our software via subscription, we know we must work harder than ever to earn your business, constantly deliver value and win your satisfaction. If we don’t deliver, you won’t renew your subscription, right?

Subscribers will have a more rewarding relationship with Autodesk. Rewarding how? Subscribers already get enhanced support direct from Autodesk. They receive services and content tailored to their needs. And subscribers can look forward to even more connected services that are only possible with the cloud. Additionally, administration of the software will be simple when you standardize your Autodesk products on subscription.

If you’re a maintenance customer today, you may not find every one of these benefits a fit for you, but you will find a range of options like:

  • A low price access point;
  • The convenience of charging subscription cost annually to projects;
  • Frequent product updates that you can decide when to consume;
  • More convenient support including “schedule a call” for faster engagement times,
  • And you can turn on and off subscriptions based on your project peaks and valleys.

What does this mean for your wallet?

If you’re on maintenance, you have already made a significant investment in Autodesk software. We appreciate that, which is why starting in June, switching from maintenance to subscription will cost you far less than if you bought a new subscription.

Basically, at time of renewal you can decide when and if you want to move to subscription for the same cost as your maintenance plan (which ends up being about 60 percent less than a new subscription).  You can also wait and take advantage of this offer in year two or three, whenever the timing is best for your business, or not at all and remain on maintenance. If and when you do decide to make the switch, you can lock-in that discounted subscription price for three years.

Beyond the three year lock-in period, all customers who make the switch will be grandfathered in at the discounted price by year four (about 15% higher than their original maintenance cost). As long as you continue to renew, you’ll keep this discounted pricing, which will be lower than maintenance plan renewal pricing and far below the cost of a new subscription.

Here is a pricing comparison example to give you a better idea of what this might look like:

Example of a North America AutoCAD customer staying on maintenance:

  • 2017 renewal = $570/year
  • 2018 renewal = $625/year
  • 2019 renewal = $750/year
  • 2020 renewal = $750-$900/year (range based on 0-20% max price increase)
  • 2021 renewal = $750-$900/year (range based on 0-20% max price increase)

Total: $3,445-$3,745

Example of a North America AutoCAD customer switching to subscription in 2017 and locking-in for 3 years:

  • 2017 M2S = $570/year
  • 2018 M2S = $570/year
  • 2019 M2S= $570/year
  • 2020 M2S = $630/year (by year 4 all customers that migrate to subscription will land at a final discounted track of about maintenance +15%)
  • 2021 M2S = $630/year (subject to standard price adjustments, unplanned at this time; customers have the option to lock-in pricing with a 3-year contract)

Total: $2,970 / 15-20% less moving to subscription

Additional pricing information can be found in the FAQ.

Is maintenance going away?

We have no plans to discontinue maintenance. It will be available on an annual basis but it will cost more than the discounted subscription pricing I’ve already covered. In addition, all of the updates to our core products will benefit customers who are on maintenance and our subscription customers alike.

We are being transparent with you about these changes, so that you have time to consider what works best for you.

Ultimately no mass communication can answer all the questions unique to you, so we urge you to talk to your reseller. If you don’t have a reseller, I’m happy to have the conversation with you personally. If you have questions I haven’t covered, please reach out and let us know what’s on your mind and how we can help. You can connect with us here.

Additional information available in this FAQ.


If you have questions on this, please don't hesitate to reach out and ask us. You can start the conversation with us here.  Additionally, check out some promotions that will ease your transition from perpetual licensing to subscription licensing.

 

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