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For Autodesk Customers, Subscription Licensing Increasingly the Way of Choice

By Steve Anderson, Contributing TMCnet Writer

When it comes to software licensing these days, there are so  many options that it can be difficult to spot the best one before a sub-optimal one is actually decided upon. But a new report from Flexera Software suggests that, when it comes to Autodesk (News - Alert), customers are increasingly turning to a subscription model for licensing software. That development may well end up changing how a lot of companies look at software licensing.

The Flexera Software blog went on to note that, in July 2016, Autodesk would no longer offer perpetual licensing, mainly because most of the new customers were going in on a subscription basis. Autodesk's CEO, Carl Bess, in turn referred to the new concept as a “more sustainable, less volatile business model,” and Bess was scarcely alone in singing its praises. Those like IDC (News - Alert)'s Amy Konary were calling it a means to “...build a strong relationship with...customers,” and that's certainly a valuable move. But with that change means the need for companies to likewise change.

There are companies out there who fear the idea of a subscription licensing model, if for no other reason than it means customers can cancel that subscription. That means a big potential for lost revenue, and one that Flexera actually addresses. Flexera notes that, if subscription licensing is added to currently-available options, it can be a revenue boost in the end. Basically, subscription options should just be another option, not a replacement; those who have other licenses already in place should remain on those licenses. But with this addition comes the need to make other changes, like to compensation practices—sales reps will need pay shifted accordingly—and to the corporate culture as a whole to accommodate this new measure.

There are plenty of other points to consider as well, including the way pricing is handled, how co-termination will work, even changes to the product itself among several others. But all of these changes pale in comparison to one critical point: this is what potential buyers want to see happen.

That last is the key that will likely systematically unlock the door of subscription licensing throughout the industry: “that's what the buyers want.” Not giving the buyers what is desired, at least within the realm of possibility, is a fairly sure way to hand over business to those who are willing to provide that which is desired. The rise of cloud-based technologies and similar matters have given companies the option to get just about everything from voice over Internet protocol (VoIP) service to big data analytics technology available on a subscription basis, able to expand and restrict the concept as needs required. So why wouldn't companies want access to that same pricing structure when it came to software licensing as well? What better way to avoid over-buying licenses, or having to pay extra when a true-up came around, than to buy one subscription for the users?

The idea of subscription-based software licensing may be new to a lot of firms out there, and may be too unnerving to consider lightly, but the demands of the market will likely force firms to start putting it into place. When businesses so clearly want a service—as demonstrated with Autodesk—it's worth it to start looking into providing that same service elsewhere...or risk being left behind.