Subscription licensing gives you the ability to balance (lower monthly cost) long-term licenses, with (higher monthly cost) short-term licenses for each application. The actual cost effectiveness of yearly subscriptions decreases if the licenses are idle from long periods of disuse. However, the cost-effectiveness of a short-term license increases if used for a maximum of their license period and purchased on an as-needed basis.
The shift to subscription licensing has been driven by three key marketplace trends: customer demand for flexibility (shorter license term commitments); Wall Street for financial transparency; and software development organizations for lower support costs.
2018 is not just another 2017. 2018 is the year organizations realize they need different (and more) data than ever before to make informed application licensing decisions. In this post we’ll briefly touch on two of the major changes happening in the marketplace and what questions you need to ask to prepare your company for success.
Associating application use to projects provides data that generates many benefits (see our Expense-2-Project At-A-Glance HERE). The benefit which resonates most strongly is the positive impact to revenue and margins. Project association’s impact on revenue is not a one-time savings: it’s an ongoing, high margin boost to your bottom line. Below are 2 ways project association brings home the bacon.
A business truism is that competition and margin pressures increase every year. AEC firms need to improve the quality and quantity of their project data, to identify ways to stay competitive and increase profits. Let’s face it, to remain an industry leader you need to find innovative and creative ways to reduce costs and improve your business practices. One source of project-related data (that just recently became available) is file-level application and license use information.
At Autodesk University last week we had some great discussions with Autodesk users. They described an amazing variety of licensing problems and monitoring needs. Needs ranged from simply seeing peak consumption of licenses, to wanting Revit plug-in monitoring. In addition, there was a lot of concern about how to report use as licensing models move to SaaS and cloud pay-per-use.
A common frustration we hear from companies with a mixture of Fixed-Bid and Time & Materials contracts is the difficulty of reporting time to each project accurately. Let’s discuss it! (Comment at the bottom.)
Software is a significant and often growing portion of AEC firm costs. Changes to software costs can have a big impact on profitability. There are 3 main activities that should be part of every Finance and IT leader’s 2018 license planning.
AEC firms bill clients for their professionals’ time. Geotechnical and construction firms bill for the use of physical assets, like bulldozers, ground penetrating radar, and drones. So why not bill for specialty application use?
Topics: Project Management
Every year at renewal time, the question “How many licenses do I need?” drives the beginning of a frustrating data gathering process. For metered applications, the simple answer is to determine how your peak number of users compares to your number of licenses. The reality is that (especially for firms consolidating licenses, using application suites, using several similar versions, or with expensive engineering applications) calculating an optimal answer is much more complicated.