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Wednesday, March 25, 2009

Major Change to Autodesk Pricing Format - You have until 3/15/10 to take action

Before you read this, if you're on subscription, you have nothing to worry about. If you're not, please pay very close attention to the following as you have one year to act.

On March 24, 2009, Autodesk will announce important changes to our upgrade pricing model.

After March 16, 2010, Autodesk will eliminate the current, multi-step upgrade pricing model and replace it with a new, one-step upgrade model and a two-step crossgrade model.

In the new upgrade model, upgrades, crossgrades, and retroactive Autodesk® Subscription fees from the three previous software releases will be priced at 50% of a full license. Autodesk will continue to offer current release (0X) crossgrades, priced at the difference between the full license price of the customer’s current software and the full license price of the new software.

In simple terms, AutoCAD subscription is $450/year. Upgrades were $595/version. Retail price of AutoCAD is $3995 and 50% of that is $1998. Let's say you have AutoCAD 2008 and want to upgrade to AutoCAD 2010. It used to be $1195 ($595/version x 2 versions back) but now it's $1998 flat fee. Even if you went three versions back a $1795 ($595 x 3), you'd still pay $1998 to do the upgrade. Subscription over those 3 years would be $450 x 3) $1350. No matter what, subscription is really now the only option. Subscription is cheaper than upgrading anyhow, so this only affects those who wanted to upgrade every 3 or 4 years. If you wanted to manually upgrade each year, you'd pay $1998 every single year. $450 vs $1998. Big difference.
If you're already on subscription, you have nothing to worry about. If you have Autodesk 2007 products, it's time to start upgrading or planning to by 3/15/2010. Bad news for laggards. Great news for everyone on the latest version of their software. You may hate this new pricing, but everyone will now be on the same platform version and that should considerably help the design and construction workflow and coordination between disciplines. No more haggling with your reseller for their best price and shopping around for cheaper software pricing from various Autodesk dealers. It's now about training, implementation, services and product knowledge and all of those things make me very happy because we have the best in Florida and among the top in the nation.

Key Dates

  • March 24, 2009 – Upgrade and Retirement landing page live on Autodesk.com.
  • March 15, 2010 – Last day to upgrade from Autodesk® 2007, 2008, and 2009 products under the current pricing model.

How the Pricing Model Change Fits with Autodesk Retirement
Also on March 24, 2009, Autodesk will announce the retirement of upgrades, crossgrades, and retroactive subscription from the Autodesk® 2007 family of products. The last day to upgrade from Autodesk 2007 products to the current release is March 15, 2010.

Beginning March 24, customers can visit the Upgrade and Retirement landing page using the following URL: www.autodesk.com/upgradeandretirement.

After the 2007-based product retirement on March 13, 2010, Autodesk will stop selling upgrades and crossgrades from Autodesk 2007-based products and will no longer provide technical support, except for existing maintenance patches, which are downloadable from www.autodesk.com.

Legacy Program
Even after the 2007-based product retirement, you still have the opportunity to purchase specially discounted licenses of current Autodesk products. If your customers have questions about the Autodesk Legacy Program, please visit www.autodesk.com/ready. The Legacy landing page contains details on the Autodesk Legacy Program.

Last tidbit. Autodesk 2006 products were officially retired 3/16/09. Miracle of miracles....if you have Revit Architecture 8 (2006 version) you can still Retroactively start/renew subscription before the 2010 version ships in a week or two. It's a lot cheaper to do that and get current on subscription in lieu of the software going into legacy the day 2010 ships. It's probably 35% cheaper to do it now. You can also finance it over 3 years if you don't have all the money now. Things are picking up. The pipeline is starting again. Try to do this if you can. You'll thank us later for the recommendation.

1 comments:

ralphg March 27, 2009 at 12:21 PM  

Once Autodesk has "everyone" on subscription, they will start increasing subscription fees. Count on it.

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