Pricing Transformation: From Perpetual License to Hybrid Subscriptions

Hybrid Subscription

Jeff emphasizes the importance of providing value via usage data, which fosters transparency, trust, and increased purchases. Autodesk offers two purchasing options: a traditional subscription model and Autodesk Flex (PAYG model), allowing users to buy tokens for product access, promoting lower costs and faster growth. The focus is also on monetizing AI services, prioritizing measurable outcomes over mere productivity.

Challenges to Customer Value

Autodesk highlights the critical first 90 days for realizing customer value and the need to monitor usage patterns, exploring outcome-based pricing models despite CFO concerns about revenue risks. As the industry navigates this transitional phase, effective collaboration is needed to monetize AI and report growth, relying on organized data for implementing usage-based pricing. Challenges during the transition include impacts on marketing, revenue recognition, sales compensation, and scaling, particularly in data management during mergers and acquisitions.

Customer Experience

The text underscores the importance of accurate data for creating a cohesive customer experience, noting that differences in experiences between larger and smaller businesses stem more from IT infrastructure than licensing models. It clarifies that leftover tokens cannot be exchanged for subscription credits, supported by billing systems that enhance tracking and management through a cloud-based admin console.

AI Monetization

Volume discounts are tied to token purchases, facilitated by Salesforce CPQ for quote generation. Data analytics improve forecasting by monitoring key metrics, with detailed usage reports informing trend analysis and future developments. Jeff highlights the challenges in cost estimation for AI monetization, suggesting extensive beta programs based on insights from large customers. He compares the current AI development phase to early baseball, illustrating Autodesk’s evolving strategy from distributors and physical shipments to direct sales for small businesses, leading to changes in customer engagement.

Change Management

The discussion addresses common challenges in change management, advocating regular executive communication and careful consideration of data and automation strategies. It recommends gradual implementation and experimentation, emphasizing a cultural approach to experimentation with risk assessment to minimize financial impacts while enabling learning and adjustments.