Here in Australia, we’re in election mode, so I have even more reasons to avoid watching TV. On those occasions when I do watch it, I am often annoyed by what I see. This is not a novel observation, but one of the things that annoys me about many politicians is their habit of sidestepping questions when interviewed. It also annoys me when interviewers fail to follow up these non-answers and let them slide. Depending on the circumstances (e.g. limited timeframe, more important questions to ask, etc.), there may be valid reasons for journalists failing to chase after legitimate answers in a live interview situation. But I would much prefer to see a non-answering interviewee tied down and not allowed to wriggle free. Squirm, baby, squirm!
For on-line journalists and bloggers, there are few excuses for letting non-answers go unchallenged. There is virtually unlimited time, opportunity and column space in …
You may remember a month ago I raised the question What proportion of Autodesk customers really are on Subscription? Shortly after that, I sent Autodesk Subscription VP Callan Carpenter these questions following up on the interview:
I have a request for follow-up information arising from this interview. I hope you can find the time to provide some answers.
Preamble: Several people have called into doubt your assertion that the simplified upgrade policy affects only a tiny minority of your customers (you seemed to imply a figure of around 3% non-Subscription customers, with 1.5% who upgrade within a year or two). My own calculations based on Autodesk’s latest published financial results indicate that of upgrades represent 21% of the combined income from Subscription and upgrades, which is 7 times greater than the impression you gave in your answer. Please see this post for more discussion.
In my recent interview of Autodesk Subscription VP Callan Carpenter, he made these statements:
…there is a very small fraction of our revenue that comes from upgrades at this point in time.
We’re down to very low single digits of customers who upgrade, and of those only half of those upgrade 1 or 2 years back. So we’re talking about approximately 1.5% of our revenue that comes from customers upgrading 1 and 2 versions back.
…[customers who upgrade] 1 or 2 [releases] back, a very small percentage of our customer base, less than 2% of our customer base that was buying those upgrades.
Others are calling those numbers into doubt. Deelip Menezes (SYCODE, Print 3D) estimated the numbers of AutoCAD users not on Subscription at 66% (or 43%, depending on which bit of the post you read), by counting the AutoCAD releases used by his customers …
This 5th post concludes the Callan Carpenter interview series. For the record, this interview was done in real time over the phone, with no prior notice of the questions.
SJ: The 12-month cycle that you have for most of your software has come under some criticism from all sorts of people, especially me. Once you have your customer base practically all on Subscription, what’s the incentive for the 12-month cycle to persist?
CC: In what way have you criticised the 12 month cycle?
SJ: In that it damages the product. In that there’s not enough time to release a properly developed product within that 12-month cycle. This is an observation that many people have made going back many years. That’s the basis of the criticism; not that, “Oh no, you’re giving me more software”. Well, there are people who complain about that but I don’t think that’s a valid criticism. …
Part 4 of 5 in this series.
SJ: There is always the fear that once you have all of your customer base on Subscription, you’re not going to need to offer those benefits any more. Can you assure people that that’s not going to be the case, that you are going to keep being “nice” to your customers?
CC: Absolutely. I think my team and I spend as much time and brain energy trying to figure out how to enhance the program as anything else. Our goal is to make Subscription a compelling value proposition; to make it not only cost-effective but valuable in other ways. An example would be the Advantage Pack program. We had a history of Subscription including extensions and other little technology bonuses for subscribers. But last year, we said we’re going to do something different with that. One of the problems with our historical technical …
Part 3 of 5 in this series.
SJ: In one of my blog posts, I was pretty cynical about one of the phrases used in the press release: “the streamlining of upgrade pricing based on feedback from customers and resellers”. Was I wrong to be cynical about that? Did your customers really ask for upgrade prices to be increased to some nice round number?
CC: What our customers have asked for is simplified purchasing. We have a very complex price book and it leads to thousands of prices items, maybe tens of thousands when you have all the permutations across all the different geographies in which we sell software. A lot of that complexity came from having multiple-step upgrades, multiple-step crossgrades. There is a cost to maintaining that kind of a system. So our resellers certainly were asking for simplification and streamlining explicitly. Our customers were asking to find ways …
Part 2 of 5 in this series.
SJ: Is there anything specific you want to say about what I have written in my blog?
CC: There are a number of things we can do to put Subscription questions and Simplified Upgrade Pricing into context. I think the first thing we need to recognise is that there is a very small fraction of our revenue that comes from upgrades at this point in time. For the last 8 years or so, our customers have fairly well self-selected to either prefer to be on Subscription and have the latest version and technology available to them, or to not do that, in which case they tend to upgrade 3 years or more after the current release. We’re down to very low single digits of customers who upgrade, and of those only half of those upgrade 1 or 2 years back. So we’re talking …
A couple of weeks ago, Angela Simoes from the Autodesk Corporate PR team invited me to interview Callan Carpenter, Autodesk’s Vice President of Global Subscription and Support. Callan is responsible for the sales, marketing operations and product support associated with Subscription. He is also Vice President in charge of Jim Quanci’s Autodesk Developer Network. This morning, we had a very extensive discussion about Subscription and other topics that I intend to publish in several parts over the next few days. Deelip has already published a Callan interview, but mine is quite different.
In this post, I will let Callan introduce himself and then move into some questions about social media that I asked at the end of the interview. In this post, both Callan Carpenter (CC) and Angela Simoes (AS) responded to my questions.
SJ: Callan, can you give me some background on yourself?
CC: I’ve been at …