topic Re: Shift to a subscription model - your questions are welcome in General discussions

Shift to a subscription model - your questions are welcome

Akos Pfemeter — Mon, 27 May 2024 15:20:50 GMT

Dear Community,

You may have already read the press release or the Insights post about our strategic shift to a subscription model.

Here is a quick summary of the news:

BUDAPEST, April 2, 2024—Graphisoft, the leading Building Information Modeling (BIM) software solution developer for architecture and multidisciplinary design, today announced that, as part of its strategic shift to a sustainable subscription software delivery model, perpetual licenses will be gradually phased out by the end of 2025. This change does not affect the delivery of Software Service Agreement (SSA)/Forward subscription services to existing customers.

Archicad perpetual and SSA/Forward licenses will be available for new customers through December 31, 2024, and to existing customers through December 31, 2025. Starting in 2026, Archicad will be available only through subscription. Active SSA/Forward contracts will continue to be serviced beyond 2025. Alternatively, SSA/Forward customers can convert to Archicad Collaborate subscriptions at the same price as SSA/Forward. This offer is designed to help existing SSA/Forward subscribers take full advantage of the Archicad Collaborate subscription, which combines award-winning Archicad for architectural design with BIMx and BIMcloud SaaS for fast, efficient, secure, real-time access to shared projects.

Please ask your questions and share your thoughts here -- Graphisoft's expert team will try and provide answer to all sorts of questions you may have!
Thank you.
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Edit by Moderator: here is the link to the evolving information/FAQ page about this announcement:

https://graphisoft.com/convert-ssa-forward-to-archicad-collaborate/

Re: Shift to a subscription model - your questions are welcome

StefanV_BCP — Wed, 03 Apr 2024 11:11:38 GMT

With the new press release Press Relations – Graphisoft

Personally having the possibility to choose between perpetual or subscription was a smart move.

But now with this decision, I see one big step in Graphisoft's downfall.

Using this kind of payment model, I as a user expect to have a full bug-free version, with no more room for half-baked solutions.

What is preventing me from using then the "leading industry standard" instead of Archicad? Loyalty? Price? Better features?

But enough of my train thoughts I am wondering what you guys think? Should we start adding new BIM authoring tools to our skillset, like for example open source let me give an hint it starts with B and ends with ER ? 🙂

Cheers

Re: Shift to a subscription model - your questions are welcome

StefanV_BCP — Wed, 03 Apr 2024 07:51:09 GMT

This is one of the moves that I really detest.

Why you don't leave the hybrid system? Leave the user the choice if they want a perpetual license with SSA, or if they want subscription-based licensing ?

Re: Shift to a subscription model - your questions are welcome

Jp1138 — Wed, 03 Apr 2024 08:12:49 GMT

Blender BIM, here I come 😅

Re: Shift to a subscription model - your questions are welcome

Jp1138 — Wed, 03 Apr 2024 08:43:09 GMT

Does Active SSA/Forward contracts will continue to be serviced beyond 2025 mean that those with SSA can continue with their perpetual licenses and updates paying SSA/Forward? I suppose SSA price will be increased so it matches the suscription, though...

Re: Future where everything is Subscription only. Thoughts anyone?

Barry Kelly — Wed, 03 Apr 2024 08:30:12 GMT

I am glad existing perpetual license holders will be able to keep them and maintain their SSA/Forward agreements beyond 2025 - or at least that seems to be how it is for now.

It was only in March of last year, @Marton Kiss said ... "we can't predict the future, but at this time we have no plans or expectations to remove the perpetual option from our offering. "

https://community.graphisoft.com/t5/Licensing/Start-strong-with-archicad-Collaboration-questions/m-p/374192/highlight/true#M85

So it seems the future can not be seen beyond 12 months!

I guess a lot of software is becoming pay as you use now.

I am not sure I like that - in fact I know I don't.

I much rather prefer to buy the software, knowing that I can use it when I want.

Let's hope that starting and stopping the subscription will be quick and easy and we do not get locked into 12 month minimums.

Although I am sure we will pay a premium for shorter monthly subscriptions.

Barry.

Re: Shift to a subscription model - your questions are welcome

Barry Kelly — Wed, 03 Apr 2024 08:44:55 GMT

@Jp1138 wrote:

I suppose SSA price will be increased so it matches the suscription, though...

I hope not.

We have already paid for the software.

Barry.

Re: Shift to a subscription model - your questions are welcome

DGSketcher — Wed, 03 Apr 2024 11:44:58 GMT

I see three problems...

Despite the "by mutual agreement" departure of Huw Roberts there is absolutely no acceptance by Graphisoft that our last five years investment has failed to materially benefit the architectural users of the software and there doesn't appear to be any intent to change that position or compensate users. All I see in that press release is a company desperate to boost its profits by forcing users onto subscription contrary to the assurances of Marton Kiss.

If you want to charge a premium for software it should at least be fit for purpose and be seen to be delivering upgrades users want. Nobody asked for the disruption of the UI with the Structural Analytic Model. The MEP27 release was & still is a gross breach of trust and has left users stuck on AC26 despite paying for the upgrade to AC27. A negative ROI due to collapsing productivity is not an appropriate position to encourage users to maintain a subscription.

The subscription model removes the obligation of the developer to do anything more than maintain the software as-is, and let's be honest it isn't in a good place. With the perpetual model the developer needs to engage with users to keep them upgrading. Subscription isn't for the user benefit, it is the legitimised face of RANSOMWARE.

No doubt this release is there to pre-empt the coming perpetual user SSA/Forward price hike.

Re: Shift to a subscription model - your questions are welcome

Jp1138 — Wed, 03 Apr 2024 12:09:09 GMT

Well, you are free to stay behind. That´s the way it´s going to work, no doubt. Or after the transition period of 3+3 years they are offering, you are not elegible for SSA anymore, so you are stuck behind also if you revert to perpetual.

There are signs of suscription fatigue in other parts of the industry. I think the timing couldn´t be worse. And the price should be significantly lower to chose the Archicad subscription against a Revit one, and right now it doesnt seem to be the case.

I don´t really know what we are going to do, but we are going to look around for other options and prepare a escape plan just in case, no doubt.

Re: Shift to a subscription model - your questions are welcome

hevi — Wed, 03 Apr 2024 14:02:48 GMT

As always with GS the marketing is ridiculous to the degree of being unclear - even when the subject is of great importance to users and without the benefit of the doubt it's hard not to see it as intentional.

I'm sure that there are a lot of small scale users that would like to keep the perpetual licensing (less the rampant and seemingly unjustified price increases) and thus I'm equally sure that GS will give a lot of reassurances of "continued support". But looking at the subscription conversion program it's obvious that that the future path has a divergence with the perpetual path coming to a stop sooner or later (although that might still be preferable to running of a cliff!?)

Or how is the marketing below compatible with assurances that perpetual licences will be a viable path forward? Or has marketing just created a false dilemma?

Re: Shift to a subscription model - your questions are welcome

DGSketcher — Wed, 03 Apr 2024 13:46:13 GMT

In context of MEP 27, I am concerned by the "Built-in updater". There have been a number of occasions recently where updates have caused disruption for the user, MEP 27 being the worst example. So what happens if AC runs the built in updater and the impacts of the update are problematic to your office? Can you rewind? I assume you don't get to download an installer file anymore, which previously would allow you to recover your position to an earlier version. What happens if AC changes / breaks Objects without notification, can I reload the old version? At the end of the day it's about autonomy and trust and that has been broken too many times recently.

Re: Shift to a subscription model - your questions are welcome

Martin Jules — Wed, 03 Apr 2024 14:35:01 GMT

I consider the perpetual license as one of the ArchiCAD's features, and it's the only one that still keeps me as a customer at Graphisoft since our recommendations for the software have not been heard. To me, it would be more beneficial for the company to follow the advice of its existing customers instead of following what Autodesk is doing.

Re: Shift to a subscription model - your questions are welcome

jl_lt — Sun, 09 Jun 2024 01:59:57 GMT

It's all right Akos!

with this move, You only:

A) lose one of your biggest remaining perceived advantages over revit. Now you become undistinguishable from it, minus a trully functional structural and mep modules, vast resources and third party support and an industry-wide acceptance (a little bit forced, yes, but acceptance nontheless).

B) lose your perceived status as "underdog that could", which now becomes "the Wannabe that couldnt". Not cool.

C) get endless dissapointment from your instaled user base which is also your main marketing machine, many of which are small practices or solo practices. It Will be interesting to know how many users accept this new model with a smile. My guess is not many. Since You have been toying with this idea for some time now (You know You did!), You can be assured that many of us have already explored and researched other options in case You choose to follow this route.

D) in relation to point a), You greatly reduce your ability to attract new users in emerging markets, because now that conditions will be the same, there is little incentive for new users to take a risk with you; most new users will choose Revit, unless You either significantly (i mean significantly) drop the price or make Archicad a competing product to all the features Revit offers, but i don't see any of it happening. Anyway, i don't know if You actually want to catter to this market.

E)Will see a Boost in revenue... For 2 or 3 years max. Then it will drop abruptly, once more competition emerges, which is inevitable. Maybe You already know this.

F)are trying to offset what have now become years of lagging behind in features and make a quick buck. If You had fixed and addressed the problems that have been presented in these forum for years now, maybe You could have been more prepared for a move in this directon. That way You could have said "look guys, we put in the work! we fixed the issues and we have an up to date product with which you can actually compete with the neighbors. This new revenue model will help us grow into the future. No one here loves it, but its necesary- Come along with us!". You had half a decade now to do this. Many of us would have understood and hopped aboard without much complain.

But instead of that, with what You are doing right now it sounds more like this: "hey! We charged You for years but we actually didnt fix any of the Main issues You constantly requested and now we are going to charge You even more! by the way, no checks please, just hard cold cash. Thanks, bye".

other than that, it's all right!

Re: Shift to a subscription model - your questions are welcome

Martin Jules — Wed, 03 Apr 2024 14:53:56 GMT

From my opinion, it's too late to compete with Revit.

Re: Shift to a subscription model - your questions are welcome

vlahtinen — Wed, 03 Apr 2024 14:54:52 GMT

What plans do you have in store for BIMcloud in the future? Will it still be provided for on-premise installations going forward?

Also, is it possible and advisable to use Archicad with both licensing types (Perpetual and Cloud Subscription) in the same teamwork project? If licensing type affects how Archicad is updated (yearly upgrades vs. continuous updates), how is it ensured that differing versions maintain compatibility in teamwork projects?

Re: Shift to a subscription model - your questions are welcome

jl_lt — Wed, 03 Apr 2024 15:32:25 GMT

Yes, but they think they can

Re: Shift to a subscription model - your questions are welcome

Jp1138 — Wed, 03 Apr 2024 15:37:53 GMT

Competing by becoming worse... Maybe they know something we don´t, but I don´t get it 🤔

Re: Shift to a subscription model - your questions are welcome

Karl Ottenstein — Wed, 03 Apr 2024 15:44:01 GMT

@hevi Could you give a link to where you found the Perpetual vs Cloud Subscription graphic? I'd comment on the apparant major issues to we users in that graphic if I knew where it came from and the context in which Graphisoft published it. Thanks!

Re: Shift to a subscription model - your questions are welcome

Mathias Jonathan — Wed, 03 Apr 2024 15:47:27 GMT

@Karl Ottenstein Here: https://graphisoft.com/convert-ssa-forward-to-archicad-collaborate

Re: Shift to a subscription model - your questions are welcome

Francois Swanepoel — Wed, 03 Apr 2024 17:04:20 GMT

Hi @Akos Pfemeter

I have not yet read & explored all the info about the cloud licensing and the shift to a subscription model...

But right now I have mixed feelings:

I recognize & understand Graphisoft is bringing this method of licensing to no doubt, answer the needs of a section of the existing user base & new markets.
On the other hand, most users have opted for Archicad explicitly for it's distinct perpetual license + SSA/Forward offer.
Many practices have been built on this principle.

Before diving into the details of the impact of these pending changes, I am acutely aware how all tech & infrastructure is not accessible on equal basis in all regions of the world (and want Graphisoft to also consider this?).

I am based in South Africa and we are definitely not alone with this issue:
The world have become "one place" via the internet, we all know that have even accelerated since the Covid lockdowns. So we do work for global clients & with global partners.

But many of these people we speak with can not believe / grasp the realities we face as direct result of extremely low quality & persistent intermittent internet connectivity in Africa as a whole.

In South Africa this is further aggravate by our "loadshedding" = relentless electricity blackouts 2-3 times daily 2.5/4hours at a time (by our national government grid supplier Eskom) ongoing for the past 5+years & getting worse.

(just think about this for a minute)

128 days of load shedding in 2023 — in the 1st four months alone – compared with 206 days of blackouts in the whole of 2022!

One of numerous sources: https://techcentral.co.za/this-years-load-shedding-is-about-to-top-2022s-and-its-only-may/225399/

Also read: 283 days! total electricity blackouts by December 2023

THIS IS NO JOKE.

All alternative electricity solutions, city scale, corporate scale & household scale, are imported. Needless to say, self sufficient electricity supply is not affordable to many businesses & households. Even our internet service providers & mobile network suppliers do not manage to keep all infrastructure running during repeated electricity blackouts. All this excludes the impact of subsequent breakdowns of equipment, further extending blackouts.

No electricity, nation wide means... no internet or mobile coverage for extended periods.

Our practices & communities & households are strained under the impact of lowered productivity and no real means to compensate for these resource losses.

For us in particular, it could mean that licenses with the total dependence of internet access is going to be further detrimental (unless Graphisoft will continue to build the system & options in such a way that we can continue to work offline?).