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

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…

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Disaster in progress – Autodesk’s all-rental plans are failing

It has been observed elsewhere that Autodesk’s decision to stop selling software has had the expected results. (Expected by me and others, but apparently not by Autodesk). Rental? We’re not buying it. Literally. What does this (and a bunch of other factors) mean for Autodesk’s profitability? Numbers from Tenlinks (with FY corrected), data accumulated from Autodesk sources. Autodesk lost $486m over the last 4 quarters, compared with a profit of $73m the 4 quarters before that and a profit of $202m the 4 quarters before that. Looks like a nose dive to me. But things are just wonderful, according to Carl Bass: We had a strong first quarter, which builds on last quarter’s momentum and is a great start to the fiscal year. Our customers and partners continue to embrace Autodesk’s transition to a subscription-based business model and cloud-based software. We continue to diligently control our costs while investing in the transition. We’re striking a healthy balance in achieving both short-term and long-term goals. Disclaimer: I’m not a business analyst and nobody should make financial decisions based on anything I have to say. But it seems to me that Carl’s whistling past the graveyard and disaster for Autodesk isn’t just looming, it’s well under way. I doubt the board is unaware of this, whatever spin they feel obliged to put on things. I wonder what action Autodesk will take? Here are my guesses in descending order of probability: 1. Keep steering the plane downwards and continue to pretend the flight plan is a good one. Carefully arrange golden parachutes for the pilots so they can jump out of the plane just before it hits the ground. 2. Go even harder at the customers, aggressively pressuring every customer into rental much earlier than originally planned. There are various methods that could…

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Suites to be replaced by Autodesk industry collections

I just got this email. Maybe you did too: Dear Christopher [sic],   I have some important information to share with you.   As we continue our transition to a fully subscription-based business, we remain committed to providing you greater value, more flexibility, and a simpler way to access the Autodesk software you need.   On August 1, 2016, we will introduce Autodesk industry collections and end the sale of Autodesk Design & Creation Suites.   Industry collections will provide you access to a wide selection of the essential Autodesk software for your profession. They will offer immediate access to new technology, cloud services, and several licensing options. In short, industry collections will give you the freedom to access the software products you want, when you want them. Learn more about the industry collections here.   To make way for industry collections, we will end the sale of new Design & Creation Suite subscriptions and perpetual licenses after July 31, 2016.   If you wish to purchase more Design & Creation Suites before August 1, 2016, we encourage you to subscribe now and rest assured that we will provide you with a simple way to switch to an industry collection in the future, if you so choose. If you prefer, you can purchase perpetual licenses of a Design & Creation Suite with a maintenance plan before August 1.   If you wish to continue receiving updates, support, and other benefits for your Design & Creation Suites, you can do so for as long as you continue your existing subscription or maintenance plan.   To learn more about Autodesk industry collections and options for switching your subscription (if you choose to do so) please read our Frequently Asked Questions. [I fixed the email’s URL which didn’t point to the FAQ].  …

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Why owning stuff is still important

Let’s start with a few questions: Do you own your home or rent it? Given the choice, what would you prefer? Why? Do you own your car or rent it? Given the choice, what would you prefer? Why? Do you own your TV or rent it? Given the choice, what would you prefer? Why? Do you own your computer or rent it? Given the choice, what would you prefer? Why? If you’re like me, you answered the same for most or all of those questions. I own all of the above and rent none of it. I prefer owning all of the above. Why? Three Cs: Continuity. If I own my home, there’s a pretty good chance that I’ll be able to go on living in it as long as I like. There are exceptions (wars, natural disasters, etc.), but ownership is generally much safer than renting if it’s important to retain access in the long term. This is because it removes the significant possibility that the owner may eventually terminate the agreement for reasons of their own, or make the relationship financially impractical. Control. If I rent my home, for example, there are strict limits on what I can do with it. I can’t just install an air conditioner if the place gets too hot in summer. The owners or their representatives can come calling to make sure I’m looking after it as they desire. If I want to keep pets or smoke in the property, my options are severely limited. Cost. There’s a reason people invest in property to rent out to others, or run profitable multinational businesses hiring out cars. It makes sense to be on the side of the relationship that’s taking the money rather than the one that’s paying it out. In other words, it usually makes…

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