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Shift to a subscription model - your questions are welcome

Akos Pfemeter
Graphisoft
Graphisoft

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/faq

Akos Pfemeter

VP Global Cross-Brand Sales, Graphisoft

314 REPLIES 314

The logic for posting elsewhere, ie LinkedIn, potential new ArchiCAD clients are likely to be reading about the competition as well. The last thing GS needs right now, giving they recently ousted Huw Roberts, is a sentiment that GS is not listening to its loyal long term clients.

 

But a bigger picture point, how can they continue with year over year increases of over 20% for SSA members when that exceeds cost of living increases 3-5x depending on your location. That to me is one of the most important issue here.

Robert Mariani
MARIANI design studio, PLLC
Architecture / Architectural Photography
www.robertmariani.com

Mac OSX 13.1
AC 24 / 25 / 26

@rm wrote:

The logic for posting elsewhere, ie LinkedIn, potential new ArchiCAD clients are likely to be reading about the competition as well. The last thing GS needs right now, giving they recently ousted Huw Roberts, is a sentiment that GS is not listening to its loyal long term clients.

 

But a bigger picture point, how can they continue with year over year increases of over 20% for SSA members when that exceeds cost of living increases 3-5x depending on your location. That to me is one of the most important issue here.


 

Methinks it's hard to maintain that facade when the every people they've long-relied on to perpetuate the perception that they do listen,...(i.e. those same long-term loyal customers), -.,.....through word-of-mouth and direct contact with industry colleagues - are the same ones they're busy giving the short shrift to right now with this episode.

 

With regards to your second point, I believe others deduced that the whole reasoning behind that would be to (eventually) force SSA folks into switching over to subscription of their own volition eventually.

 

Basically a  de facto forced subscription without them having to actually do the forcing directly.

Eduardo Rolon
Moderator

Heard from another source that SSA will stay for current perpetual users.

No forced subscription as of today April 09, 2024…

Eduardo Rolón AIA NCARB
AC27 US/INT -> AC08

Macbook Pro M1 Max 64GB ram, OS X 10.XX latest
another Moderator

I heard it too yesterday from a source in Canada. This hybrid option will be the only one on the market and will allow the company to differentiate itself from the others.

Martin Luther Jules
AC 10-27 (Full)
Asus | 64 GB RAM | Windows 11

So "The differentiation does not come from a pricing model but being the frontrunner in technology." no longer holds 🤔

 

But that perpetual + SSA will be unilaterally terminated by GS has never been an issue (how would that be done legally?). The primary issue is how much and how fast the cost will increase and if there will be a difference in basic functionality between it and subscription. And a secondary issue is why they are trying to get already committed and invested costumers to renew their commitment and investment by a 3-year contract with up front payment?

The marketing mix still exists: price, product, distribution (placement), and communication (promotion). Differentiation can be done based on either one or all of these variables. 

Martin Luther Jules
AC 10-27 (Full)
Asus | 64 GB RAM | Windows 11

The point was that GS has clearly stated (quote from the FAQ) that pricing/licensing won't be a variable by which they aim to be differentiated - in addition to rejecting the perpetual model as obsolete. So if they will continue to supply a viable "hybrid option" then there seem to have been a turnaround and they should update the FAQ (again?).

 

Or perhaps they are just making it all up as they go and telling people what they think anyone listening want to hear...

But with year-over-year 20+% increases on SSA fees, aren't they still going to be de facto "forcing" people to subscription, anyway.

 

I'm not really sure I'm aware of any small-to-medium firms that can sustain that sort of annual cost increase on any of their line expenditure items on a yearly basis over a long-term.

Everyone keeps talking about the large increases in SSA/Forward support.

However, I bet you will find that the subscription fees will also increase year on year.

Subscription is only relatively new so we have no records to evaluate.

Maybe the level of increase will be different - I don't know.

But it makes sense, no matter what option we choose, there will be future price increases.

 

Barry.

One of the forum moderators.
Versions 6.5 to 27
Dell XPS- i7-6700 @ 3.4Ghz, 16GB ram, GeForce GTX 960 (2GB), Windows 10
Lenovo Thinkpad - i7-1270P 2.20 GHz, 32GB RAM, Nvidia T550, Windows 11

I suppose suscription price will remain relatively stable during the first years, as SSA price increases, so it seems a better deal to go to the subscription model. At the same time, pieces of the software will begin to be subscription exclusive for no aparent reason (they have already started doing this tying some things to the SSA). And once SSA is basically gone, because lots of people have jumped off a each year worse SSA, subscriptions can begin to ramp up prices with everyone being trapped on them - as not paying a month means you have no software that month. That´s the way this kind of thing always works.

ARCHICAD 27 SPA
Windows 10
DGSketcher
Legend

I think from some posts here and on the VW site there is probably a balancing up exercise in progress to arrive at a single price point with maximum user gullibility sorry, I meant customer retention. (Bleed them but don't let them die!) GS will like VW move to buy on line and there will be a single price traded in primary currencies e.g. $US, £GB or Euros. SSA will be eradicated by price hikes that deliver a stay or go option.

 

If you want an idea of what is coming, then go sniff round the VW forum where you will find a parallel universe of software problems (despite the subscription model's promise of better software) & price hiking. VW has a head start on AC, it was possibly Nemetschek's testing ground for the changes to AC.

Apple iMac Intel i9 / macOS Sonoma / AC27UKI (most recent builds.. if they work)
mthd
Ace

Interesting comments made here by longstanding users of AC.

 

I think some are worried that the SSA/FPL will increase much more than a subscription will.

 

The USA market is definitely driving the change to the subscription model becoming the new norm for the future. I think the CAD/BIM tool vendors in the USA are happy with charging a PAYG system “Pay As You Go”. I see this with home design framing and building quantifying tools like Chief Architect & SoftPlan that are now also subscription only for new users.

 

I know that some past CA users are still on SSA but will loose that privilege if they default on the yearly SSA payment. Last year they were paying $595.00 USD and this year it is $695.00 for SSA. The subscription fee for CA is $1995.00 USD per year (BTW that is very steep for that type of software). And if you upgrade from an old SSA/PL you get the first year for $995.00 USD. These CAD programs are not in the same league as the ones Nemetschek holds and not worth as much as AC or VW are.

I don’t see the logic in a purely subscription model for all CAD/BIM products but I think these big corporations see the dollars mainly. Nemetschek could choose to sell all their products with both options and they would probably gain a greater market share from the Autodesk subscription only customers who want freedom of choice ??? Maybe they don’t see the wisdom in this because they are not looking too far ahead. Market forces are driven by competition and it seems that this would be a better strategy to me at least ?


I don’t know what the legal implications of selling software in the USA market are, or what is having an impact on subscription being the preferred method of sale ? Does it have something to do with fair trading or preventing monopoly, I dont know ?

 

AC8.1 - AC27 ARM AUS + CI Tools
Apple Mac Studio M1 Max Chip 10C CPU
24C GPU 7.8TF 32GB RAM OS Ventura

I imagine the intent of these "big corporations" is to become too big to fail. There is a new battle looming fuelled by the confrontation of National Governments & the likes of Google and Apple. It's all about brand, leverage & profits. In a new world order driven by globalisation the self interested businesses are the ones aiming to be at the top of the tree and untouchable by governments challenging their monopoly position. You, dear reader are the most powerful weapon they have while you continue to pay in the belief that things will eventually get better.

Apple iMac Intel i9 / macOS Sonoma / AC27UKI (most recent builds.. if they work)

There's no legal requirement in the US. My finger-in-the-wind guess would be that they are chasing Venture Capital funding for investment or expansion. To secure it, they have to show that they run a tight ship, squeezing every possible dollar of income out of each invested dollar. No VC is going to be convinced that perpetual licensing is a way to grab market share from Autodesk, but I'm sure they are convinced that Autodesk are stale, ripe for disruption, and Nemetschek could develop the next big thing and monetize it faster and more efficiently than a ground-up startup.

Miha_M
Advisor

The price increase on SSA/Forward and foggy subscription swich with uncertain pricing has two big problems. Value and Trust. 

In the last 5 years there has been very little added value in Archicad for Architects, based on the official new features guides:

Architectural Design in v22:

Curtain Wall Renewal

Stair Tool – Further Enhancements

Railing Tool – Further Enhancements

Custom Geometry Modifiers in Profiles

Architectural Design in v23:

Beam and Column Tool Renewal

New Opening Tool

2D Representation of Connected Slabs on Floor Plan

Architectural Integrated Design in v24:

Integrated Structural Analytical Model

Integrated MEP Modeler

Model Checking

Architectural Design in v25:

New Commands for Better 2D-3D Navigation

Expanded Design Freedom with Polygonal Openings

Stair Improvements

PARAM-O Improvements

Architectural Design in v26:

Improved Attribute Management with Hierarchically Structured Attributes

Search in the Navigator

Opening Tool - Surface Overrides

Library Part Maker Now in All Localized Archicad Versions

Enhanced Documentation and Modeling Capabilities for Kitchen Cabinets

Create a Copy When Stretching Circles

Architectural Design in v27:

Enhanced Design Exploration with Design Options

Improved Project Management – Enhancements to Attribute Management

Tool and Workflow Improvements

Modern GDL Editor

 

I filtered out just the Design related descriptions, as there have been many more, but most of these are non-essential for what architects need and want. I could also include everything related to Productivity and Documenting, as this is an important part of our workflow and there have been a few notable additions, but I will not. As you can see, the list is not very long and many entries are enhanced, improved only. From Archicad 22 (2018)  up to Archicad 27 (2023) everybody on SSA has invested in Archicad a lot but got little. With every SSA payment we trusted in GS that the next version will be better, but wasn't or it was only to a fraction of our expectations. So, again, Graphisoft, you need to solve these two main problems before bullying us into a new and higher pricing policy on SSA/Forward, subscription or anything else you might think about. 

SSA/forward was (is?) a community investment, funding of further community aligned (!) software development. Subscription isn't.

| Archicad 4.55 - 27
| HP Z840 | 2× E5-2643 v4 | 64 GB RAM | Quadro M5000 | Windows 10 Pro x64
| HP Z4 G4 | W-2245 | 64 GB RAM | RTX A4000 | Windows 11

I wish I could upvote this comment 10 more times for so neatly and plainly laying out what a miserable record it's been over the last 4-5 versions.

 

We usually just say it, but to see it laid out like that in black and white just......takes your breathe away.

And not in a good way.

 

I'm still cringing in second-hand embarrassment for them for the time they literally announced the 'copy-and-stretch' circles as a "new" feature tool in v26.

 

Good.

Freakin'

Grief!

.....Charlie Brown.

 

Lingwisyer
Guru

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.

AC22-23 AUS 7000Help Those Help You - Add a Signature
Self-taught, bend it till it breaksCreating a Thread
Win11 | i9 10850K | 64GB | RX6600 Win10 | R5 2600 | 16GB | GTX1660
Eduardo Rolon
Moderator

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/

Eduardo Rolón AIA NCARB
AC27 US/INT -> AC08

Macbook Pro M1 Max 64GB ram, OS X 10.XX latest
another Moderator

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


@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…

One of the forum moderators
AC 27 USA and earlier   •   macOS Ventura 13.6.7, MacBook Pro M2 Max 12CPU/30GPU cores, 32GB

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.

Martin Luther Jules
AC 10-27 (Full)
Asus | 64 GB RAM | Windows 11