Did You Know...

reprinted by permission of Ralph Grabowski, editor
WorldCAD Access
July 5, 2004

Investor's Daily Digest reports on the current release of AutoCAD and the company's finances:

"The latest version, AutoCAD 2005, includes lots of new 3-D features."

... except that it doesn't.

In the article, Autodesk CFO Al Castino says: "We believe in the next 10 years that our entire user base will move from 2-D to 3-D."

... another decade to complete the transition! Except that I don't think that will ever happen.

Castino also says: "[3D] makes the customer much more productive, so we can charge more per user-seat."

... so don't expect to be paying less for software from Autodesk.

"... the change [to subscriptions and annual releases] ... generates 30% more revenue per user over time, says Castino. That's because most buyers would only renew their licenses every two to three years under the old model, if that."

... but more.

The article states that to cut costs, "Some Autodesk facilities were combined, hundreds of jobs were moved offshore, and 125 staff positions were cut."

The company is not worried about competitors, according to Sue Pirri, head of investor relations, who says: "Short of a big interest rate hike or terrorist attacks, we don't see a real risk to the company right now."

Read the full report at Yahoo.

About the Author

Ralph Grabowski is an editor at upFront.eZine Publishing, Ltd. (previously known as XYZ Publishing, Ltd.). Ralph is the author of 60 books and several hundred articles for dozens magazines and newsletters about CAD, graphics, and the Internet.

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