Shift to a subscription model - your questions are welcome

[Akos Pfemeter]

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.
----------------------

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/

[Lingwisyer]

Less revenue lost following year on year lackluster releases on a subscription model... And by the sounds of it, after AC28, SSA sounds like it is just a loyalty discounted subscription, one that I expect to no longer be discounted in the long term. I doubt migration back to AC28 would be viable for any firm a version or two beyond if they decide to drop SSA. Even at the current time, migration between some adjacent versions that have tool changes is a nightmare... OS compatability on top of that compiles that the longer you go beyond AC28.

Ling.

[Eduardo Rolon]

and the press release went live without any answers or updates on this thread:

https://architosh.com/2024/04/graphisoft-announces-full-subscription-model-shift/

[Bricklyne Clarence]

Yeah, but Eduardo it's the weekend.

Can't these hard-working diligent Graphisoft 'Experts' just be allowed to enjoy their weekend in peace without 'disgruntled'  perpetual complainers constantly ruining their weekend demanding answers (......that they promised ........at the literal start of this thread. If only someone had previously quoted them and bolded it to emphasis it.....)?

Can't they just have a moment of peace in the weeke.....

Oh wait,.....

(**checks calendar and day of the week**)

Never mind.

/s

[Karl Ottenstein]

---

@Eduardo Rolon wrote:

and the press release went live without any answers or updates on this thread:

https://architosh.com/2024/04/graphisoft-announces-full-subscription-model-shift/

---

But that article in architosh is pure speculation by the author.  Don’t know that I would trust anything published there after the unfounded speculation about people being stuck on 28 which is not what the press release or FAQ says at all.   I’m still (somewhat) patiently waiting for (enforceable) answers in writing from GS…

[Mjules]

It seems that Nemetschek is trying to fairly establish the same principle for all its daughter or subsidiary companies. This would show to others that the same subscription principle will also be applied to ArchiCAD while Graphisoft knows this is not true. If that is the case, this intentional communication issue must be resolved.

[Akos Pfemeter]

Dear Archicad Customers,

In response to your feedback, we've made revisions to questions #8 and #15, ensuring that they provide clearer and more comprehensive answers. Additionally, we’ve also introduced additional topics under questions #16, #17 and #18 to clarify other important issues you raised.

We greatly value your feedback as it guides us in refining our services. Please continue sharing your questions, and thank you for collaborating with us.

Many thanks,

Akos

[DGSketcher]

For those who haven't bookmarked the FAQ here's the link...

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

[Mjules]

8. The conversion discount coupon will expire, and the converted subscriptions will be renewed at the standard subscription list price. Alternatively, customers may fall back onto the perpetual path with their licenses. In such cases, their perpetual licenses will be upgraded to the most up-to-date perpetual software – that is, to the version accessible at the time to SSA/Forward customers – albeit without the SSA/Forward coverage going forward.

15. Later in 2024, Graphisoft will offer the opportunity to convert SSA/Forward licenses mid-term as well. In such a case, the parties will reach a financial settlement, whose process and mechanics may vary depending on the market. Further information will be shared locally once this option is available in a certain geography. Mid-term changes in SSA/Forward contracts will require the mutual agreement of all parties – so such conversion will only happen upon the customer’s request and with the support of the involved partner.

16. Perpetual license in software means that you have a perpetual right to use the software for which you purchased it (i.e. the version that you purchased it for). This means any perpetual license of Archicad purchased before December 31, 2025, gives you the right to use the software “as is” for as long as you have compatible hardware and operating system to run them on. The counterpart to “perpetual” is not “cloud” licensing (that’s a technical solution – see next question), but rather “subscription” licensing, which gives you the right to use the software (the most up-to-date version of it) as long as you have an active subscription.

17. Cloud licensing is a specific technical solution to software licensing. It is called “cloud” because the license is hosted by the vendor (Graphisoft) in the cloud, and the customer can manage access through a web interface. By default, cloud licenses are “named” licenses, meaning they are each connected to a specific user. As mentioned above, Graphisoft is also working on offering a network/floating type licensing (ETA in Q3 2024).

18. Licensing is about access to software and not access to content created by the software, which means Archicads running with cloud licenses can open projects created with Archicads running physical key-based licenses and vice versa. The same is true for for Archicads running with perpetual vs. subscription licenses.

[Jp1138]

8. The conversion discount coupon will expire, and the converted subscriptions will be renewed at the standard subscription list price. Alternatively, customers may fall back onto the perpetual path with their licenses. In such cases, their perpetual licenses will be upgraded to the most up-to-date perpetual software – that is, to the version accessible at the time to SSA/Forward customers – albeit without the SSA/Forward coverage going forward. 😥😥

No way we are taking the "offer", then.

[DGSketcher]

8. The conversion discount coupon will expire, and the converted subscriptions will be renewed at the standard subscription list price. Alternatively, customers may fall back onto the perpetual path with their licenses. In such cases, their perpetual licenses will be upgraded to the most up-to-date perpetual software – that is, to the version accessible at the time to SSA/Forward customers – albeit without the SSA/Forward coverage going forward.

Reading between the lines it looks to me that in 3 years time SSA/Forward will be terminated. You will be stuck on AC30 or paying the full rate for AC 

[Jp1138]

You maybe be right, but it contradicts with

Graphisoft’s “SSA/Forward to Subscription” conversion program is optional for customers. That is, Graphisoft will continue to support Archicad licenses with active SSA/Forward contracts.

Maybe they will mantain it a bit longer for those who have refused to make the trade in the first place 🙄 This should be clearly stated before taking any decision.

[DGSketcher]

---

@Jp1138 wrote:

Maybe they will mantain it a bit longer for those who have refused to make the trade in the first place 🙄 This should be clearly stated before taking any decision.

---

Fair question, but don't forget to factor in the inevitable price hikes & compromised service that will make SSA/Forward unattractive. I don't believe there is any commitment to hold down SSA/Forward pricing, this has been confirmed by some of our latest above inflation renewals.

If they wanted to retain a two tier AC subscription with an option on adding BIMcloud they would have offered it by now.

[DGSketcher]

Licensing is about access to software and not access to content created by the software, which means Archicads running with cloud licenses can open projects created with Archicads running physical key-based licenses and vice versa. The same is true for for Archicads running with perpetual vs. subscription licenses.

Not sure if this really answers the compatibility question honestly. I don't doubt the subscription licences will open earlier projects**, but stuck perpetual licensing will I assume struggle to cope with all the new feature that MIGHT be added to future subscription versions.

** Some of us haven't yet forgotten the release of MEP27 and the advice MEP26 model data would be effectively frozen without a redraw using software that is still in development! 

[vlahtinen]

The whole compatibility issue stemmed from Graphisoft's own communication, where a clear difference was made in how updating method differs between perceptual and subscription licensing. This suggested that there will also be some kind of version difference between the softwares with the two licensing methods resulting in compatibility issues especially in teamwork projects.

Yet despite the condescending tone of the answer provided, it fails to assure that there will not be a version difference and thus compatibility issues between the licensing methods. The very reason that licensing isn't about content is why we users have to be on alert for the compatibility. If a file created with some software version is not compatible with another and one doesn't have a license to the other, there's nothing one can do.

So clarification is still needed on how the updating methods actually differ between perceptual and subscription licensing and how it's ensured that they are compatible. It might be, for example, that the perceptual upgrades catch up the continuous subscription updates every year, but it has not been made clear yet. This is also an important factor to consider when weighting the options.

[thesleepofreason]

15. Later in 2024, Graphisoft will offer the opportunity to convert SSA/Forward licenses mid-term as well. In such a case, the parties will reach a financial settlement, whose process and mechanics may vary depending on the market. Further information will be shared locally once this option is available in a certain geography. Mid-term changes in SSA/Forward contracts will require the mutual agreement of all parties – so such conversion will only happen upon the customer’s request and with the support of the involved partner.

This does not clarify the issue of ongoing SSAs but rather makes it seem that GS consider it an issue to be settled between the parties of the SSA i.e. the costumer and the local distributor. So what if the local distributor doesn't support the conversion or isn't willing/able to reach a financial settlement with the costumer? The simple and clear (for the costumer) "process and mechanics" would be for GS to offer a prorate credit to be used for any subscription payment but it seems like that is too much of a burden for GS.

[Karl Ottenstein]

Agree... GS should "eat" any financial issue related to the distributors... a network that they created with vastly varying compensation policies for their own benefit - not the benefit of the customer.  All customers should be treated equally... and if a distributor is a problem due to their legal agreement with Graphisoft, that is not anything customers were ever a party to - it is all Graphisoft's own doing and they should do whatever it takes (e.g., losing money) to guarantee that all customers are given the same offer.

[thesleepofreason]

Another consequence of the fact that GS aren't part of the SSA to consider is what happens if the distributor ceases to distribute Archicad? A possible case is that the distributor ceases due to decreased profitability caused by the change (or other reasons). Another is that GS terminates their agreement with the distributor for whatever reason. This would seemingly leave the costumer stranded however much GS "continue to suppport SSA". This has of course always been a risk taken by the costumer but has become pertinent given GS decision and language.

[thesleepofreason]

16. ... The counterpart to “perpetual” is not “cloud” licensing (that’s a technical solution – see next question), but rather “subscription” licensing ...

17. Cloud licensing is a specific technical solution to software licensing. It is called “cloud” because the license is hosted by the vendor (Graphisoft) in the cloud, and the customer can manage access through a web interface. ...

18. Licensing is about access to software and not access to content created by the software...

If "perpetual" and "cloud" aren't counterparts and "cloud" is a technical solution to software licensing which in turn is about (right of) access to software - then why provide the amalgam infographic which clearly conflate type of license and technical solution and even introduces additional terms (maintenance subscription and flexible cloud licence) and software functionality. Do GS even know what they are talking about here?

But more importantly - we need clear and proper information about the difference between perpetual license and subscription license when it comes to software updates/releases and cloud based software functionality (not licence functionality).

[Karl Ottenstein]

---

@thesleepofreason wrote:

...
But more importantly - we need a clear and proper information about the difference between perpetual license and subscription license when it comes to software updates/releases and cloud based software functionality (not licence functionality).

---

Yes, the question originally asked by @vlahtinen ... has not been answered.  Will perpetual license holders (under SSA) and subscription license holders be running the same BUILD of Archicad so that TeamWork will function normally with a mixture of licenses?  (And will BIMCloud basic,  hosted by the customer, still be available?) Or, will Subscription customers receive updates (builds) that are not available for Perpetual customers and thus Teamwork would break?

[jl_lt]

The key for Graphisoft to navigate this conundrum is FLEXIBILITY and OPTIONS.  i dont think people are oposed to the concept of suscription per se. What we are opossed to is the arbitrary termination of a perpetual license or price increase in SSA in order to transition it to suscription, which is a very low blow and cause of many a revolutions. Its not like we want to buy a License now and expect premium service 20 years later without any kind of pay.

There are many many options you could offer GS. Most of which already have been discussed here.  There should be ways of retaining you current user base while getting new users. Will the new users be on suscription? probably. There should be ways you can encourage people to keep their license perpetual but keep paying SSA or RENT licences as needed (and as said, the rent price is fair).  There should be ways to promote Archicad in schools.  There should be ways to make bigger offices use your software.  At the end you could end up gaining more, than just follow the competition into this most despicable form of manipulation, but as i have said before, most people here know how to draw by hand or in 2d cad: really dont think for a second we cannot go back to it. 

[rm]

Well said.