Subscription software set to rise, following CAD model

Analyst IDC says that while currently 75% of vendors’ revenues come from licences, 43% of software vendors and 26% of users believe that the majority will shift to subscription by the end of 2010. Autodesk subscriptions manager Patrik Durvik believes that will happen as more users understand the value to them of being able to budget ahead and get upgrades as they become available – lowering total cost of ownership and improving competitiveness. He cites a version of AutoCAD, which currently costs around 60% more than subscribing. “If a company intends to keep up to date with annual upgrades it is obviously sensible to consider the latter option,” he says. Rolls-Royce Marine Electrical Systems in Portsmouth, an Autodesk customer for around eight years, has been on subscription for half that time, and is now a strong advocate. It has five seats of Autodesk Inventor, five of AutoCAD, two of AutoCAD Electrical and two Autodesk Raster Design. IT manager Steve Buxey says he finds it: “less worry, far cheaper and more efficient.” Specifically, he adds: “All our software renews at the same time each year, allowing easy budgeting and scheduled upgrade installations, and new licences can be added to the existing contract on a pro-rata basis. “It’s difficult to quantify how much we save but it’s substantial. There are always special offers for subscription customers: overall it must have saved us at least 50% and I particularly like the fact that there are no nasty surprises.” And another point: Durvik notes that most software vendors offer a package of benefits for subscription holders. “It is worth looking at these carefully as they often include privileges that can smooth day-to-day working, offering help with practical issues that can affect productivity.” He and others like him believe the turning point will be very soon, driven as much by fast Internet access as anything else. “As broadband increases, subscriptions may evolve so that users pay to access applications held on a vendor’s server, and this will give instant access to any new enhancements available.”