As I indicated in May, Autodesk will be increasing the cost of upgrades to 70% of the full retail cost of a new license. This renders it totally pointless upgrading Autodesk software at all, which is obviously Autodesk’s intention. This change probably won’t affect many people, as those who have chosen to stick with Autodesk despite everything have already been effectively forced onto Subscription. Anyway, here’s the confirmation from Autodesk:
In early 2013 Autodesk will simplify the current upgrade pricing model, which may affect pricing and/or eligibility for upgrades. Autodesk is providing advance notice to help ease the transition and ensure that customers have enough time to plan and budget for any impact to your organization.
As part of this change, Autodesk will be simplifying upgrades into a single offering available for licenses that are 1-6 versions old at a discount of 30% off new license SRP*. Under …
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 …