Community Tip - You can subscribe to a forum, label or individual post and receive email notifications when someone posts a new topic or reply. Learn more! X
Can someone tell me what happens if a company discontinues their maintenence with PTC. Does their network license get modified some way that their software stops working, or do they just loose their tech support and upgrades?
Thanks,
Matt
The problem with subscriptions is the fine print. Minimum subscription periods and possible fees. They will only refine this to make the greatest profit unless they sense a drop-off of membership. For the most part, I doubt PTC gives one hoot about us one-license users. We are their bottleneck. Too much effort to keep us happy. So they turned their backs on us. It is no longer a partnership as it was in the early days. It is like everything else, just another gouging of the people struggling the most.
I figured other software companies were headed in the same direction. Who else in the CAD world is turning to the subscription plan?
SolidWorks has already done it.
Yes, but SolidWorks still gives the option to stay with perpetual. They state that they will continue with both options, so the user can choose what is best for them. - Which is Right For You, Perpetual or Term Licenses? (This is probably the most honest article I've seen on this issue from any CAD vendor.)
Autodesk is now subscription only for new licenses. Existing perpetual licenses can still be maintained.
Doing some quick searching I came across these two articles:
---------------------------------------------------------------------------------------------------
Beth Stackpole - PTC CAD Software Blog - Why CAD Companies Can’t Ignore Subscription Licensing | PTC
"As with any new paradigm, there will always be detractors, and the subscription model won’t be a perfect fit for every company. Some will argue that there is no sound business case for staying current on the latest software release, making a one-time software purchase a better fit. Others will contend that paying monthly fees to “rent” a software license as opposed to buying it outright can actually end up costing more in the long term, which according to experts, may actually be true in many cases when companies sit down and do the math."
---------------------------------------------------------------------------------------------------
CAD Vendors Think This Many Customers Want Subscriptions - http://www.worldcadaccess.com/blog/2016/04/what-cad-vendors-think-customers-want-in-subscriptions.html
The executives of stock-funded CAD vendors need to roll in increasing revenues to satisfy Wall Street, enhance the value of shares, make shareholders happier, and subsequently keep their jobs. One way to increase profits in a mature market like CAD is to charge customers more. One way to charge more is to charge customers every year (aka subscriptions) instead once (aka perpetual).
Subscriptions are (supposed to be) v-e-r-y lucrative. Using the latest pricing from Autodesk, for instance, we see that the world's second largest CAD vendor makes more from customers by charging them annual subscription fees after just four years, as compared with a perpetual license + annual maintenance fee.
Ironically, the drawback to Autodesk and PTC going gung-ho on subscriptions is that their revenues are falling, while Dassault's is increasing. PTC is stuck in the low $1-billion revenue range, Autodesk at around $2.5 billion, while Dassault is surging from $3 billion last year to breaching $4 billion next year.
In summary:
Autodesk and PTC insist the revenue decline is temporary. Dassault doesn't need to make the apology.
just a note: Dassault is not only Solidworks... it includes Catia, their flagship.
Solidworks is a struggling little orphan to them.
Nice to know the numbers. PTC doesn't have a core to support the levels of Catia, nor do they have the programmers to create a bigger, better, badder core.
All PTC seems to be able to do is "add value" with their very powerful and stable programming engine.
I was never looking at PTC making the grade with people like Autodesk or Dassault.
It became very apparent very early into Creo, nothing will ever really change for us. We just get stifled with useless upgrades and empty promises along with some very serious deceptive advertising that is propagated by VARs. PTC has nothing to move forward with. Their talent has long left the building.
Others: Onshape?
@TomU wrote:
Yes, but SolidWorks still gives the option to stay with perpetual. They state that they will continue with both options, so the user can choose what is best for them. - Which is Right For You, Perpetual or Term Licenses? (This is probably the most honest article I've seen on this issue from any CAD vendor.)
- "Perpetual licensing with subscription offers the lowest total cost of ownership over the long haul."
- "At SOLIDWORKS we have no plans to stop selling or retire perpetual licenses. We understand that perpetual and term serve different needs, and there is no one-size-fits-all approach for license provisioning that meets all our customers’ needs."
Autodesk is now subscription only for new licenses. Existing perpetual licenses can still be maintained.
Doing some quick searching I came across these two articles:
---------------------------------------------------------------------------------------------------
Beth Stackpole - PTC CAD Software Blog - Why CAD Companies Can’t Ignore Subscription Licensing | PTC
"As with any new paradigm, there will always be detractors, and the subscription model won’t be a perfect fit for every company. Some will argue that there is no sound business case for staying current on the latest software release, making a one-time software purchase a better fit. Others will contend that paying monthly fees to “rent” a software license as opposed to buying it outright can actually end up costing more in the long term, which according to experts, may actually be true in many cases when companies sit down and do the math."
---------------------------------------------------------------------------------------------------
CAD Vendors Think This Many Customers Want Subscriptions - http://www.worldcadaccess.com/blog/2016/04/what-cad-vendors-think-customers-want-in-subscriptions.html
The executives of stock-funded CAD vendors need to roll in increasing revenues to satisfy Wall Street, enhance the value of shares, make shareholders happier, and subsequently keep their jobs. One way to increase profits in a mature market like CAD is to charge customers more. One way to charge more is to charge customers every year (aka subscriptions) instead once (aka perpetual).
Subscriptions are (supposed to be) v-e-r-y lucrative. Using the latest pricing from Autodesk, for instance, we see that the world's second largest CAD vendor makes more from customers by charging them annual subscription fees after just four years, as compared with a perpetual license + annual maintenance fee.
Ironically, the drawback to Autodesk and PTC going gung-ho on subscriptions is that their revenues are falling, while Dassault's is increasing. PTC is stuck in the low $1-billion revenue range, Autodesk at around $2.5 billion, while Dassault is surging from $3 billion last year to breaching $4 billion next year.
In summary:
- Autodesk says 100% of customers want subscriptions; reported revenues are falling
- PTC says over 70% of customers want subscriptions; reported revenues are falling
- Dassault says vast majority of Solidworks customers don't want subscriptions; reported revenues are increasing
Autodesk and PTC insist the revenue decline is temporary. Dassault doesn't need to make the apology.
First time in 20+ years I've looked at moving somewhere other than PTC and Autodesk. Subscriptions suck for the lone wolf... and if Dassault really intends to stay true to having no plans to do away with perpetual licenses... I hope they win!.
so 30%... almost 1/3 of PTC users do not want subscription. that's kinda huge. And Autodesk is just mistaken... ~100% maybe...but I have Maya and I do not want it as a subscription... so maintenance until I can no longer do it. c'est la vie