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/

[StefanV_BCP]

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 ?

[Jp1138]

Blender BIM, here I come 😅

[Algimantas Kuprenas]

Will spend time on investigating BlenderBIM, looks interesting well structured software 😉

Software development can be funded by community easily and transparently 😉

[Jp1138]

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...

[Barry Kelly]

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@Jp1138 wrote:

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

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I hope not.

We have already paid for the software.

Barry.

[Jp1138]

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.

[glenn_nz]

You're right, we can choose to stay behind, but this creates its own problems:

1. I will be unable to upgrade my OS beyond a certain point; ArchiCAD will begin to refuse to run beyond a certain point in the OS.
2. If I stop upgrading my OS, my cyber insurance becomes invalid
3. I will also need to stop upgrading every other piece of software we use so that it continues to work on an old OS.

They have us screwed every way.  The proposed SSA price is outrageous given that I've already 'bought' the software.  This makes me want to leave the industry entirely.

[Andy Thomson]

@glenn_nz For small firms, the margins are tight, the burden of keeping up with increasingly complex standards wrt resiliency, climate, energy, IAQ and ecological performance, materials and methods (prefab, mass-timber, wbLCA), not to mention regulatory burdens, continuing education, insurance, increasing taxes and fees and no real appetite for professional fees even approaching the fees of say, realtors, (6% here in Canada) in an environment where 'everyone is an expert' when they are very far from it (see: Tom Nichols book 'The Death of Expertise'), with colleagues that undercut fees (*we'll do it all for 1%!!*) through pretty universally broken procurement processes - we're managing to keep up with all of this and more, and even doing good work in this pressure cooker of an environment, but all that said, these moves by software companies (not just Graphisoft) are felt deeply by the community. It feels like the one thing that was working with us, or that at least made it a little bit fun, is turning on us. You aren't the only one to consider an exit from this profession. 

[Barry Kelly]

@glenn_nz , you don't have to stay behind at all.

You can continue paying your SSA/Forward support fees just as you do now.

You do not have to switch to subscription.

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@glenn_nz wrote:

They have us screwed every way.  The proposed SSA price is outrageous given that I've already 'bought' the software.  This makes me want to leave the industry entirely.

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The proposed SSA price is exactly what you are paying now - there is no change, other than normal yearly increases.

I am sure you will find subscription fees will also increase over time as well.

SSA/Forward should always remain significantly cheaper than the subscription - I wish this would be clarified if it hasn't already (I need to re-read the FAQs).

So you can continue to pay SSA/Forward as you are now - no need to change.

Or you can switch to subscription before the end of this year and you will get a deal where if you pay 3 years up front, you get the subscription for 3 x current SSA/Forward fees, with an option to extend for another 3 years.

Or you can subscribe and pay yearly for SSA/Forward fee + 10% surcharge.

At the end of the reduced fees you will go to the full subscription price or you can opt out and you will still have your permanent license, but locked at that current version.

Only then you will not be able to pick back up on the SSA/Forward support.

It will be either subscription or nothing.

But you can stay with SSA/Forward beyond the 3 + 3 years if you don't switch.

Barry.

[Rex Maximilian]

The point is that the SSA fees have increased overall by 25% as of the first increase just two years ago. This is not. as sustainable model. One has to wonder what their motive is. Add to that the fact that the version 27 roll out timeline-wise and stability-wise was very, very subpar, and they're still increasing the fees without a currently stable version. It was reported during the beta testing phase that the caps lock key on the Mac crashes the app. when editing text. Yet we've had to live with that for months. Also, switching display resolutions between laptops and external monitors causes the cursor not to respond above a line around 1/3 down from the top of the display. All other apps and system works fine, except for ArchiCAD. This is not when a price increase should be instituted for future versions--when the current version is still buggy.

Just to reiterate, a 25% increase with no end-in-sight is not right. They're doing this to dissuade perpetual license holders from maintain it.

[Barry Kelly]

I am not saying I agree with or am happy with the continual price rises.

39% for 3 increases sound like a lot, but that is only 11-12% per year when you break it down - still a lot I agree.

How were the increases before that?

I am pretty sure they were quite low for some time.

Unfortunately prices will always increase, and I will be very surprised if subscription does not increase as well.

Whether it is a sustainable model or not, we may not think it is, but only Graphisoft can decide that.

And I really wish these bug fixes did not take so long either.

The purpose of my reply was simply to say, you do not have to switch to subscription and to point out the options.

The path you follow for for licensing and upgrading is a personal choice for each user.

Each user needs to weigh up the pros, cons and costs and make a decision for themselves.

When they think the cons and cost start outweighing the pros, then it is time to start looking for an alternative solution.

Barry.

[Rex Maximilian]

First, I was in error on the 39%. I transposed the numbers before dividing. Actually 25%. But still...

Well, before that, it was $600 for those who agreed to a 3-year SSA, or $700 on a year to year basis. Then it went to $800 for a couple of years, then boom... $80, $90 and $80 each year again. It's just not sustainable. I don't understand how they think they won't drive away customers. I guess they're counting on the new blood who aren't used to reasonable prices.

The problem with switching to a subscription model for perpetual license owners, is that your perpetual license is locked to that last version. What would be fair is to say, that if you ever end your subscription service, your perpetual license will be that version for good.

There just has to be some kind of concession for those of use who've paid for upgrades for 20, 25, 30+ years.

It just seems like a gloomy future due to their greed. And like someone else said, of all the other software out there, I've never seen this kind of jump in pricing.

[Barry Kelly]

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@Rex Maximilian wrote:

The problem with switching to a subscription model for perpetual license owners, is that your perpetual license is locked to that last version. What would be fair is to say, that if you ever end your subscription service, your perpetual license will be that version for good.

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If you switch to subscription, your license will actually be locked at version 25, so you can still work with those older versions.

You will be issued a cloud license that will allow you to use 26 +.

You can not (or should not) use both licenses at the same time - not sure how this will be policed.

Cloud licenses can not work with 25 and below versions, that is why your perpetual license will be locked at 25, so you can still work with those old versions.

Of course you can open an old file in a new version with a cloud license, you just can't run the old software.

Should you then leave the subscription in future years, you will be left with a perpetual license for the version you are using when you leave.

But you will no longer have the option to upgrade it.

The only way to then use newer versions is to take out a new subscription (but your perpetual license will remain locked at the version when you left and can never be upgraded).

Barry.

[glenn_nz]

Mine went up 20% this year compared to last year.....

[glenn_nz]

@Barry Kellythis is completely contradictory to what we are being told in NZ.  We are being told the only way forward is with Subscription, and that we get a great deal by having a discounted subscription for the first 3 years.

[Barry Kelly]

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@glenn_nz wrote:

@Barry Kellythis is completely contradictory to what we are being told in NZ.  We are being told the only way forward is with Subscription, and that we get a great deal by having a discounted subscription for the first 3 years.

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Yes, you will get a great deal if you do want to switch to subscription.

3 + 3 years at a reduced price is a good deal if you want subscription.

If you don't want subscription, the it is not such a good deal at the end of the 3 + 3 year offer.

Tell your provider (Central Innovation?) to read FAQ 3.

Barry.

[rm]

GS has aggressively been raising the cost of SSA licenses. Ours went up 25% this year. They clearly started this move several years back with the rapid increase in SSA prices. The goal is to have us all on permanent subscription.

This is not unique to GS, all software companies have moved this direction. But it seems criminal raising prices yearly at a rate that far exceeds cost of living. There are NO architecture firms that observe increase in professional fees on as yearly basis like the software vendors, clients just won't pay those increases. In this regard, we the architects are the problem - by putting up with software pirate pricing. What is the solution? I believe the firms with the greatest leverage with the BIM software vendors need to force a change. STOP buying subscriptions. Force the software companies to adjust to a more reasonable and proportionate pricing structure. It almost seems like that they have no idea that architecture firms do not operate at the 25-35% margins that the software companies continue to harvest from us. This cannot be sustainable for architecture firms.

[StefanV_BCP]

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

[Barry Kelly]

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...

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.

[mthd]

@Barry Kelly wrote: “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.”

I certainly hope you are right about this ? Did you read this in the published information ? I was under the impression that after the 31st of Dec 2025 SSA/Forward perpetual ceases ? Does that just mean that no more perpetual licenses will be issued after that date and that we can continue to upgrade with SSA/Forward perpetual beyond 2026 ?

I think that all of this needs to be clarified by @Akos Pfemeter for all of us to understand what the future holds for the perpetual license holder. I am definitely not going to be forced into a subscription model after 2025. If they would like my business they will need to keep my license perpetual and fully upgraded beyond 2026.

I hope we get clear official clarification from Graphisoft and not our inaccurate interpretation of the FAQ’s ?