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.
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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/

[mthd]

Anything like this is possible with the cost of living crisis or just use your latest version of AC that you still have as a “Perpetual License”. 

[mthd]

The problem I have with a future that eventually transitions to subscriptions only, if that actually eventuates. With all on subscriptions, you would have to take what you get with upgrades and quit complaining about the new features or better functionality. If you don’t like the latest versions just use something else and spend time learning other CAD software. That will only take more time and effort on our part to adapt to a change like that.

Subscriptions only are not really suitable for a small practice. In a big firm they can employ students or employees who know how to use a certain software so they will just get a subscription that suites that new employee. The big firms are having a big impact on the shift to a subscription only policy.

Graphisoft needs to have two options, one for the small firm ie PL and SL for big firms.

[MinhNguyen]

Hmm, with the latest development of the FAQ, it clarified some of the questions around terminologies being thrown around (even by myself), but it creates additional questions as well:

1. License access: it looks like we need to focus on the term "perpetual" vs "subscription". This strictly concerns your rights to use the software, but not the delivery method (how it looks like/behaves - which is down below).

2. Licensing method: based on the last 2 questions in the FAQ

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
...
Archicads running with cloud licenses can open projects created with Archicads running physical key-based licenses and vice versa

it seems like "cloud" license is the replacement term for "software key". Which means, we now have only 2 types of delivery: "cloud" key and "physical" key - this definitely needs more clarification and updated articles on licensing

Which brings me to my questions:

1. Will "subscription" model still offer physical-based keys, or is that strictly for perpetual? EDIT: found the answer in the FAQ: Graphisoft’s subscription products run using modern “cloud licensing” technology. Seriously, the FAQ makes it even more confusing...So I guess subscription = cloud license, but what about perpetual and physical?

2. How will the current software keys get migrated to the new "cloud" system, or it's just a new terminology?

3. Can we get a detailed technical comparison of "perpetual" vs "subscription" model? Here I emphasize on "technical comparison"

4. Still no answer on whether subscription model offers compatibility between different language versions - or there's no longer language version restriction with subscription?

5. Where BIMcloud Basic/BIMcloud will end up? It gets little attention from GS so far.

I feel very sad that GS decides to end the conversion program in 2024, while technical and financial details are still unclear to many people - partners included, which means we have little time to decide. Even the mid-term conversion details are vague, which offers no confidence to anyone who wants to jump into the subscription model early

[Jp1138]

I think they have gone too far trying to convince us about the advantages of the subscription.

Everything is probably more simple: as long as SSA exists, perpetual and subscription programs will be the same: the fact that you have a subscription has nothing to do with the capaticy to deliver updates. We have some other programs with perpetual licenceses where the license is stored online (not downloaded each time as the GS software license), and it has no influence in the way the program is updated (this program has also a hardware license option). It is just a different way to know if you have paid for the software, but the software itself is exactly the same, it is installed in your computer and only checks your license online when you run it. If internet is down you have some courtesy days it will work without the connection, exactly as GS is telling it will do. It has the advantage of accesing your license from any computer and not having to upload-download. That´s it, and GS could make every software license work this way if they wanted, it´s not related to being on susbcription or on perpetual.

[artktecture]

Graphisoft is really putting smaller firms in a tough position.

I was previously self-employed as a sole proprietor and had a subscription to Archicad. Business was good and the software costs were manageable based on the number of clients I had per year. Then the covid pandemic hit and my business dried up within a few months. Luckily, I managed to find employment with a local home builder, so after my last project was finished, I let my subscription expire with the thought that I'd keep my design business as a side job and buy a perpetual license when the next paying client came around. I don't need the latest and greatest version of Archicad and AC27 would suit me just fine until I retire. Unfortunately, with the deadline for new licenses now imposed by Graphisoft, I may have to buy the software before the next client rolls around.

Or do I??? There are other options around... it's going to be a tough decision, and one that may not favor Graphisoft in the end.

[thesleepofreason]

Perhaps a bit tangential but apparently Autodesk is testing out changes to their business model by taking over order processing and payments from local distributors potentially diminishing their role and harmonising price levels in the process. Given the notion of shift to industry standard and especially "the differentiation does not come from a pricing model" - should we expect GS to follow suit? Or are they already there - is it possible to buy subscription from local distributors? Either way, it is already uncertain what what the effect of a shift to subscription will be on local distributors and with them their costumers SSAs and news like that adds to it - I guess local distributors aren't too confident in a future with GS either.

[Mjules]

More options from Autodesk are coming. The intent is to offer a personalized service to every customer. This company is in both proactive and reactive modes. 

[Akos Pfemeter]

All, numbering to the FAQ added for easer referencing and Question #2 updated to remove ambiguity about timeline... 

Have a great weekend!

Akos

[DGSketcher]

Well clearly Akos is professionally handling the Licensing / Sales aspect of Collaborate, however much we may not like the trajectory, but one glaring fact remains and that is all the technical questions remain unanswered. And that takes us to the other fundamental issue after cost... Are Graphisoft actually still technically competent to manage the lumbering beast they have created. If they are, then where is the "Expert Team" with answers to all the critical technical questions that have been asked to enable decisions to be made on renewals?

[Mjules]

Graphisoft will force us to “collaborate” even though ArchiCAD Collaborate doesn't meet our needs. Hopefully this matter will not end up before the courts of competent jurisdiction. 

[Mjules]

@Akos Pfemeter, do you care about these kinds of facts and/or concerns?

"Uff.

After hurricane María we were without internet service for 3 months.

Usually we take 2 week "work-cations" in a place with no internet service without driving down for around 45 mins.

---

What am I supposed to do in these cases? Close the office down and tell my clients that sorry I have no access to the software that I pay for to design your project please indicate to your lending institution that they are not allowed to charge you interests on your construction loan because your file is locked until the internet service provider fixes their infrastructure…"

"Second part:

Hurricane season starts in June and goes to November. This means that for every storm warning we get (23 predicted for this year) I need a backup plan that hopefully will connect to the internet to use my legally paid software.

This kill switch is unacceptable."

I am really disappointed by Graphisoft. The original thread is available here.

[mthd]

It might be good to have a perpetual license up your sleeve just in case a disaster strikes. We have till the end of this year to get one if we haven’t already got one.

I got no problem with subscriptions being the preferred option by GS but not for me. As long as I can afford to keep my perpetual license active I will keep upgrading it.

I don’t know what the implications are for the Solo license holders because there is hardly any official information about it from GS. Maybe they could make that information clearer to us so we can consider our future options.

Not all of us need to use teamwork so I hope we are not all herded into that type of collaboration model with no other options ???

[Kevin Lee]

I apologise if this question has already been addressed in a previous thread, but I'd like to ask about the following:

Currently, we possess more than few licenses (lets say 100 +- SSA licenses) and using BIMcloud manager services (a paid BIM server, also known as a CAL license).

I'm uncertain about the annual cost of each SSA subscription(AFAIK, it varies based on where you are and when you’ve purchased the license). However, I understand that there is a discount available for subscriptions if you have a certain number of "net" licenses.

Question 1: If I opt to continue with our current SSA subscription system, will we still be eligible for the same discount scheme in the future?

Question 2: In the event that we transition to "subscription products," will larger accounts be eligible for a discount scheme?

Question 3: Are there any changes for SSA license holders who are currently utilising Graphisoft BIMcloud server (the paid version)?

[Kevin Lee]

Additionally, If we are going with "subscription" option, what happen to the local support and services? If global support is available for subscription customers, will GSHQ provide a direct support channel for any support issues?

[Anita_Slocombe]

@Akos Pfemeter, @GRAPHISOFT 

For Graphisoft/Archicad to become the market leader (which it is not), You need to provide the following: being more in line with other providers and general software, or most of us WILL JUMP SHIP 🚢 Countries like Australia have consumer Laws/ Fairtrade that you must abide by. ConsumerGuaranteesAustralia.pdf 

1. TRANSPARENCY & CLARITY

alignment with industry norms and consumer expectations is crucial. In today's landscape, offering greater transparency and clarity about Archicad's future trajectory is paramount. This includes providing a roadmap for the next year and beyond, akin to what other companies have successfully implemented during transitions to subscription models. Additionally, addressing concerns regarding the transition process, such as the fate of physical keys and subscription pricing adjustments, is essential to maintaining trust and compliance with consumer laws.

For example, other businesses gave the option to transition to the subscription at their current Forward/ssa agreement for the first year and subsequently had a set 10% percentage increase per year till they reached the subscription fees. Providing multiple payment options not just upfront 

2. FEATURES

ensuring that each Archicad release delivers on promised features is imperative. Compliance with consumer laws mandates that all included features in a new version, like Archicad 27, must be thoroughly debugged and functional. Moreover, fostering transparency in the feature development process by engaging users through feature request platforms similar to competitors can enhance customer satisfaction and trust. (Not sent into a black void, never to be heard of again) this forum is a perfect example of what not to do!

3. SUPPORT & CUSTOMER CARE

Providing robust support services is non-negotiable. Priority customer care and support should be accessible to all users, irrespective of their licensing model, and should meet industry standards across all regions where Archicad is available.

4. SECURITY

Larger firms/companies will have even more of a problem with cloud-based GS being the only product on offer due to government security issues ⚠️  they legally require BIM servers/cloud to be within the local area/country. Software needs to also be able to be used offline when there are outages.

Like many, I took the risk with a perpetual licence despite the above not being addressed because the cost was substantially less over a few years, but if you're offering a subscription model with precisely the same service at three times the price of REVIT, then it's not worth the risk and again breaks many consumer laws

[tkrepler_fjc]

I haven't read all the comments on the topic, so I expect I might repeat some of the posts before me, but so be it: at least one more voice...

It seems to me that the price of the subscription, at least for mid/large organisations (and I am part of one of them with 100+ Archicad licenses and 100 CAL for BIMcloud Paid on Premises - let me call it as "Pro" for now) is not clear at this point. The change to the subscription model is hurting the mid/large businesses too, not just the small ones.

The price is a crucial point, but it is not everything.

With the change to the subscription model, Graphisoft has stepped into dangerous territory, as one of the clear differentiation (marketing) factors for Archicad was the perpetual license. I understand this change is a business decision for Graphisoft, as they see this as a better way to run their business.

But it forces us to rethink our business decision to go for / stay with Archicad. And please excuse the simplifications that follow.

For small practices, it is the sheer running cost of Archicad versus the benefits of using it.

For mid/large businesses it is just a tiny bit more — can you win/deliver enough projects for your business with Archicad? If the running costs of Archicad are on par with the running costs with Revit (or AEC Collection), the choice is a no-brainer: you get more business with Revit and get around easier in the project. Graphisoft doesn’t seem to appreciate, that architects also need to make business considerations, not just love and stay with a (ounce so clever) design software, that speaks their language. There are ways to change, and unfortunately, I have seen too many companies making the switch.

Also, I am deeply resentful of the concept of forcing people to BIMcloud SaaS. The functionality and the free nature of BIMcloud, when it appeared in Archicad 15 years ago was mind-blowing and one of the key reasons to draw people towards Archicad or keep them around. And yes, we were afraid of the time when it becomes payable.

When BIMcloud (Pro) stemmed from BIMcloud Basic, the argument was, that it is payable because future development would go into that. We saw potential in that and bought 80 CALs, however, I have to say, that according to our analysis back then, the price of the Pro version outweighed the business benefits of it vs Basic. Nevertheless, we have invested in the Pro version, trusting Graphisoft, that future developments will pay for that. Looking back, I can’t say there were many visible developments — perhaps I am wrong…?
Now, Graphisoft says that the main direction of development for BIMcloud is SaaS and BIMcloud (Pro) is a platform no longer supported. So, what were/are we paying for?

It is a very painful thread. It hurts a lot, as I love Archicad despite its problems — and have, for almost 35 years now.

As someone suggested, we should move on, as I don't believe our rant makes a tiny difference — well, it should not, as I am sure Graphisoft has tested the market, and carefully considered and calculated everything.

@Kevin Lee has great questions, I am waiting for the answers from Graphisoft with huge anticipation.

[jl_lt]

Based on some previous threads, i don't think they have carefully tested or calculated anything. They just saw a saturated blue jeans market (or was it Bim software with suscription scheme market??) and said "me too!!"

[tkrepler_fjc]

Well, "I am sure" was meant in a (sarcastic) British way. (No, I am not British, but I've picked up some stuff from them. For those who've never heard of it: https://www.angmohdan.com/48-things-british-people-say-and-what-they-actually-mean/ - there are multiple versions of it...)
Nevertheless, I trust, that once Graphisoft clears it up (you might say "if and when" but I am a tad more hopeful, I'd just say: please Graphisoft, please), we will think more calmly about the whole scenario.

At this point @jl_lt you are absolutely right.

[jl_lt]

Well, i'm not british either, but whenever I have to speak english I do imagine myself talking in a nice London accent

[Bricklyne Clarence]

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@jl_lt wrote:

Based on some previous threads, i don't think they have carefulley tested or calculated anything. They just saw a saturated blue jeans market (or was it Bim software with suscripción schemesarket??) and said "me too?!!"

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Oh, I'm sure they did calculate some things,......

(***read to the sound of a slot machine cashing out,....**

$$$$$$$$$$$$$$$$$$$$$$$$$$$$.....

......or, to be more region specific.....

......

€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€.....)

[jl_lt]

It reminds me of a scene of a late 90's movie (i dont know if i can say movie titles here... but there is a club... and they fight), where the protagonist is telling a lady on the plane how he calculated if the company would do a car recall or not:  "A times B times C equals X. if X is less than the cost of a recall, we dont do one." 

In this case, the amount of big offices who would convert to suscription (A), minus the amount of small or solo office you are going to alienate with your negligence and spite (B), times the sparkling new monthly subscription  fee (C), times the estimated number of years left before AI takes over (D) minus the cost of implementing a paying system and getting some interns writing some PR panflets exalting the virtues of suscription (E), equals X.  If X (revenue) is more than amount received for keeping things like they are minus the cost of actually inovating and fixing long time problems, guess what?  We will go to suscription