AutoCAD 2000i: i for Irony?
San Rafael, California, July 19, 2000 - When Wall Street
analysts from USB Piper Jaffray and Goldman Sachs recently
downgraded Autodesk stock, shareholders staged a version of the
headless chicken dance, running every direction in a panic.
Their collective clucking was not totally mindless—they knew
they wanted out, and fast. Autodesk stock plummeted 21 percent
in a matter of days. It has since settled into a nervous holding
pattern at about $23-$24 a share.
This was not what Autodesk had in mind when it began
trumpeting its new AutoCAD 2000i. In fact, the stock debacle
occurred just after the company released numerous products with a
host of Internet-enhanced features. The response seemed to
indicate that the luster has worn off the Internet, at the worst
possible time for Autodesk.
Ironically, Autodesk had been chided, even criticized, for
not “webbifying” their products. Several other companies
reacted sooner and promoted online and Internet-related
enhancements for their products. For example, IMSI’s TurboCAD
v6 (introduced in early 1999) integrated an Internet browser
into its opening screen, CoCreate innovated with online
collaboration features and MicroStation/J incorporated Java.
Autodesk's efforts were seen as too little, too late.
No doubt, this criticism served to motivate Autodesk to
release AutoCAD 2000i, has as its opening screen an online
version of AutoCAD today. Clearly, having the “i” in the
product name was a way to tell all doubters, especially those in
the financial community, that the Internet version of AutoCAD
had finally arrived. The downgrading of the stock probably has
more than one Autodesker scratching their head and wondering if
the “i” stands for Internet or irony.
While it is apparent that Autodesk has failed to charm Wall
Street, it still remains to be seen how the end users of AutoCAD
will react. Many AutoCAD have felt that the online capabilities
of CAD software far exceeded what they needed in their
day-to-day use. While browsing the Web and email have been
generally accepted as useful tools for designers, architects and
engineers, the rush to add Internet-related features has been
dismissed by insiders, many of whom are grappling with the
prospect of a CAD vendor turning to another direction.
Some sources note that industry analysts are pessimistic
about Autodesk’s future earnings, as they believe the user
response in upgrading to 2000 has been somewhat frostier than to
the R14. They’re also waiting to see the long-term effects of
Dassault Systemes’ purchase of ACIS. Overnight, an archrival
suddenly owned a product of which Autodesk is the biggest
licensee.
Autodesk is not commenting on the situation, preferring to
maintain its emphasis on 2000i and products from its
subsidiaries. And in truth, its Wall Street standing is not
horrible; during the week of July 17, analysts primarily rated
the company as a moderate buy with some calling it a hold; none
were advising stockholders to sell. It’s possible that even in
the rapid-paced technological world, too many things happened
too fast surrounding Autodesk. Users figure to have the most
important impact during the coming weeks as they assess the new
products. Their measure of acceptance looms large.
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