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Monday, May 7, 2012

News Flash - Autodesk to remove upgrade pricing next March - Older customers screwed! Subscription customers laugh

I'll start with my favorite line in this marketing piece:
      Autodesk currently anticipates changes to its upgrade options next year

What it really means:  If you're not on subscription, shut your doors now as you'll be giving all of your money to Autodesk if the recession happens to end for you.

Heres the most important piece if you don't want to read all of this below:

Current Pricing:

  • 2013 - Current release  - Price 100% of new seat
  • 2012-2010 (3 releases) - Prior version upgrade - Price 50% of new seat
  • 2009-R14 (11 releases)- Legacy/Get Current - Price 70% of new seat
  • R13-Older - No upgrade/Purchase new seat - Price 100% of new seat 
Next Year's Pricing:
  • 2014 - Current release - Price 100% of new seat
  • 2013-2008 (6 releases) - Legacy/Get Current - Price 70% of new seat
  • 2007-Older (8+ releases)- No upgrade path / Must purchase new seat - Price 100% of new seat

Here's the scoop on what is really happening to Autodesk's customers: 
  1. As of May 1st, Autodesk stopped 5% discounts on 2 year subscription contracts and 10% discounts on 3 year subscription contracts.
  2. Autodesk raised new subscription prices on many products this past March on the 2013 products
  3. You can no longer purchase Revit Architecture Suite.  You can buy the standalone Revit product or you must buy Building Design Suite Premium which carries a subscription price of $975 ($250 more than the Revit Suite $725 price)
  4. Autodesk will be raising prices on subscription renewals next year.
Here's the big announcement on the "anticipates changes" line.
  • Upgrades at the 50% price for 1 to 3 year previous year upgrades are going away
  • 1 to 6 year prior versions can be upgraded at 70% of new seat pricing
  • (This is currently the pricing for 4+ years prior - Knowns as Legacy or Get Current)
  • Products 7+ years back (2007 and earlier) are no longer eligible for upgrades.
  • You must buy a new seat for 2007 and earlier.  Currently, products older than Release 14 fall under that category.

There you have it.  Autodesk is majorly restructuring their pricing. For those of you on subscription, expect price increases.  If you need Revit or a Revit Suite, expect to pay an extra $500 for the license and $250 more per year for subscription.  

Who's getting screwed?  Finally, all of the laggards who haven't upgraded their licenses in years and mess you up with older file types.  The biggest piece of this is that the 1 - 3 year upgrade pricing is going away and it's Legacy pricing or new seat pricing.

If you aren't on subscription and upgrade once every 3 years, it's going to cost you a lot more money to upgrade.  

Bottom line:  You're being forced to go on subscription.  
Simple math.  If you waited 3 years to upgrade Revit, it was $2997 + $725 for subscription.
Next year, it's $4547 + $975 for subscription for Building Design Suite Premium.
If you paid subscription for 3 years it was $725 x 3 = $2175.
You paid $2175 Your competitors will pay $5522 to upgrade a license that's just one year old.

Source: http://usa.autodesk.com/adsk/servlet/pc/index?id=19221634&siteID=123112

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Upgrade now to help protect your software investment, and help maximize your return with the many benefits offered through Autodesk® Subscription and Autodesk® 360 cloud-based services. Autodesk currently anticipates changes to its upgrade options next year, so take advantage of existing upgrade pricing and paths today to move to the current release—and you could additionally save up to 20%* off SRP when you act before July 13, 2012.
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