New SOLIDWORKS Subscription Late Policy

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This from TPM. Confirming with SolidWorks. Reward or punishment?


What is the new Subscription late policy?
Since its inception, SOLIDWORKS has offered users the ability to renew expired licenses for an established and nominal fee. For example, $500 in NA, or a similar fee across other price lists, regardless of how long the licenses have been off subscription. Additionally, license repurchase was required for expired EPDM licenses.

Beginning January 1, 2016 the current Subscription late fee and repurchase requirement will be replaced with full Subscription backdating. As a result, users with an expired Subscription will be subject to all missed Subscription charges (up to the cost of a new license) plus the current year charge to renew the expired license and obtain the current release with full support. This policy applies to all SOLIDWORKS product offerings and includes licenses that were never on Subscription.

When will the change on into effect?
The new late policy will be effective beginning January 1, 2016 when all orders must be compliant with the new policy. The existing late policy for renewing licenses will remain intact through the end of business December 31, 2015.

Why change the Subscription late policy?
The new Subscription late policy rewards our best customers and affects only a small percentage of our user base. It is more fair and respectful to approximately 95% of the SOLIDWORKS users, those customers who renew on time and annually. These customers consistently make the investment necessary to gain access to the most current intellectual property the SOLIDWORKS product suite provides and the world class support our Channel Partners offer. While the current late policy that allows users to renew expired licenses for a nominal fee regardless of the expired duration is the most lenient in the industry, it actually encourages and supports users to reduce their overall investment while allowing the same benefits and competitive advantages as Subscription customers who remain current year-to-year.

Summary
This change is a policy shift. We will remain the most customer focused team in the industry and we will listen to our customers.


Update 8/3: I have confirmation from some VARs, but no official word, statement or reply (on this SolidWorks forum thread) from Dassault. An earlier conversation on Twitter.

Update 8/4: The TPM post with information on the new policy has been removed from their website.

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Nail in the coffin. I am officially done with SolidWorks.

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Yeah, there’s seems to be quite a few people unhappy with this change. Twitter and the SolidWorks forums were both active regarding it.
The thing that really chaps my hide is the whole “fair and respectful” line. Just rubs me the wrong way.
BTW - Hawk Ridge (my VAR) confirms the change.

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I recently canceled my personal Solid Edge subscription. That licensing model is obsolete, which is basically what I told my VAR. Part of the cancellation paperwork required by Siemens is agreeing to the terms and conditions regarding becoming current on maintenance should I later decide to return to Solid Edge. I crossed out the entire paragraph before signing.

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“rewards” how is making others pay a reward towards anyone!? this is Redonkyulous…

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Yes, I can totally see an Onshape/Fusion360 migration on the horizon now.

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“rewards our best customers”

i.e. forces them to stay on subscription, so we don’t screw them like we’re screwing you.

“supports users to reduce their overall investment”

i.e. stops them from giving us money.

“we will listen to our customers”

i.e. we will not listen to our customers.

How about this for rewarding best customers? Reduce the cost of subscription, the longer you’re on it. Incentivize with features not fees. VARs take note. Priority support for 2+ years without lapsing, special training discount, etc.

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At this point I just feel sorry for the VARs, DS is gonna put them out of business… or maybe their master plan is to eliminate the VAR all together and that’s why they are making it imposible for them to compete with Fusion and Onshape :poop: , OK no…

I’m still hoping for tiered support:

Level A - service packs and major releases, pay-as-you-go support.
Level B - service packs and major releases, full support.

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Yeah right, it sounds more like a protection racket than a reward system!

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Some more info on this…

This is a snippet taken from an email that was sent to all SolidWorks resellers. (We have yet to see the original email.) Allegedly, Dassault instructed resellers not to broadcast this change to the public, leaving users to find out when January 1, 2016 hits, or rather, when they pursue upgrading.

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Are we sure at this point DS doesn’t stand for Death Star?

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This is from @ml13ml on the SolidWorks forum post:

Have been waiting for my phone call from my VAR since I heard about this!

We get the full triple whammy! Not only are our subscription costs around $500 more expensive than the USA (just because we are in Australia) BUT I was informed that our costs are going to rise because of the exchange rate!

I’m waiting for the quote to come in but I’m guessing $2300 per Professional License! For a small company with two licenses that’s going to hurt to miss a year!

UPDATE:
Just received quote $2739AUD - $1997US per License …ouch

UPDATE:
If nothing else it has given Marketing opportunity to others. This in my inbox this morning!

"Michael - not sure exactly what sort of crack Dassault is smoking, but I am willing to work with you to see if Onshape could replace one (if not both) of your SolidWorks licenses.

Some things to think about;

You have already paid full purchase price for SolidWorks - its yours. Not being on their subscription does not stop you using it. What will you not be able to do? Well, exchange files with the few people that will stay current after this debacle. Onshape reads and writes SolidWorks 2015 files (bodies only).

You can still use SolidWorks for the short list of things that you need but Onshape doesn’t do yet.

AND by using Onshape, you get all the things that SolidWorks doesn’t do;

Built in CATIA (and other) file translator
Collboration and sharing built in
Design Reviews (follow mode)
Supplier management - secure sharing and un sharing and the ability to write out whatever file they need.

If for no other reason than to have a vent - lets have a quick chat to see what we can do for you. I will make myself available at your convenience"

Josh you are too quick! I was just heading over here to post that!

Love the opening … not sure exactly what sort of crack Dassault is smoking. You just don’t see enough of that in Marketing!

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Yeah, I laughed at that one :laughing:

This is getting good.

http://imgur.com/DR70aCO

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The TPM and ModernTech posts have both been pulled - 404’d, if you will. Seems odd.

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From the Dassault Systemes 2015 Q2 Earnings Call:

Jay Vleeschhouwer
Okay. Next, for Thibault, it’s our understanding that, starting next January of 2016, you are going to be changing the pricing for customers who have gone off of maintenance or subscription and wish to resume or reinstate the subscription and, in effect, making them – making it less desirable for them to go off maintenance and making it more expensive for them to come back onto maintenance after some period of time. Could you verify that that is in fact something that you mean to do? And given your normal churn rate of customers go on and off maintenance, what do you think the incremental revenue opportunity might be from putting in that kind of new subscription reinstatement for pricing?

Thibault de Tersant [Dassault Systemes, Senior EVP, Chief Financial Officer]
Thank you, Jay. Well, in fact the policy we have for reinstatement across all our process and rules portfolio has been the same for the past well, I prefer not to say but probably 20 years, which is essentially that when you stop paying for maintenance and you want to go back and pay again, and be under maintenance again you need to catch up for the period of time in which you have not renewed maintenance and the reason for that is because we have continued to do R&D and the improvement in functionalities and they are brought when you get back under maintenance, so we need to be fair with all our customers.

And there wasn’t one exception actually to this rule. And the one exception was that we had a fixed amount for SOLIDWORKS users when they were returning under maintenance. And frankly, we don’t believe I mean this rule was the one which was at the beginning of SOLIDWORKS. And we really don’t see a reason why, we would do things differently for SOLIDWORKS than for all of our brands, because we have the exact same rationale. And of course, the more we go, the more the SOLIDWORKS product portfolio will be based upon this 3DEXPERIENCE platform and we’ll share applications, so very important to be a consistent across of users. So that is the rationale.

Now, to be honest with you, I have not measured in terms of dollar revenue, incremental dollar revenue what is going to be brought by this changing of rules. I expect maybe a small improvement in renewal rates. That would be my expectation. But it is not planned exactly yet.

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Stealing this. Hope you don’t mind.Proper credit will be given.

Have to say that while I can see their reasoning, to some extent, I don’t think Dassault is seeing the whole picture. How many 1-, 2-, 5-seat companies are there that have CATIA or SIMULIA or some other high-end package? While their subscription policy may work for those companies that have high-end products, and can always afford the fees, there are plenty of small SolidWorks shops who may not be able to. Any sort of minor downturn can be major for small players.

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