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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

297 REPLIES 297

Aside from the unanswered technical questions in this thread, which are material to a decision, they could have made this a lot simpler.

 

They know how many licenses we have, so... "Here's your SSA-Forward renewal cost, but you can take advantage of AC Collaborate for $$$$ [enter appropriate cost] or if you give us loads of money to cover the next 3 years you can have Collaborate for $$$$$. P.S. You can keep your perpetual licence, but we are phasing out SSA-Forward renewals in three years".

 

I honestly think the misinformation is here to confuse users as Graphisoft are frightened of putting the numbers in black & white because they know the likely reaction if it is made clear.

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

Comparing it to the FAQ released by Allplan for their conversion (available by google search) is like night and day. Allplan presents a simple offer that gives a 2-year price freeze on a 1+1 year contract with 3 months notice for giving up the perpetual right of usage (no fallback). At the same time they clearly state that the SSA cost is expected to increase year over year and that future improvements to some standalone products (management/collaboration) now available for perpetual licence will be limited to subscription and while they consider the offer to be a significant economic advantage to many costumers - existing contracts will remain unaffected.  They managed to present this in one PDF from which I - not even being a Allplan costumer - can get a clear picture of the situation. Perhaps there is some difference in the licencing model of which I'm ignorant but I can't really see any reason for this GS mess.

This has echoes of that whole 'Publication of a Public Roadmap' saga, written all over it.

 

We all remember how it was like pulling teeth getting them to publish some semblance of a useful, informative Roadmap somewhat in keeping with what is now effectively the Industry standard in customer interaction.

And also how stark in difference between that joke of a first draft RoadMap they threw out, particularly in comparison to what was already available and public from their Nemetschek "sister" companies in Allplan and Vectorworks Roadmaps that were (And still remain) Lightyears ahead of what they were supposedly giving us.

 

I even remember some of us practically BEGGING them to just copy whatever template the Vectorworks folks were using and just replace "Vectorworks" references with "ArchiCAD" references instead, and in lieu of reinventing the wheel from scratch if it was too much work to do one from the ground up on their end.

 

Now we're right back here again and they can't even seem to handle this shift to 'Subscription-only' as smoothly as those other guys seem to have done on their ends.

It's like they live on an entirely other planet completely.

It shouldnt be that difficult, but confusing language today allows for denial of responsibility later.   

Eduardo Rolon
Moderator

I still don't get the decision to remove SSA as an option since the main conceptual difference is that with subscription if you stop paying you lose access to the software and with SSA if you stop paying you get to keep the last version you paid for.

If the issue are the users that upgrade their SSA every 4-5 years then just add a price that adds more $$$$ for those users for the next time that they upgrade.

Right now they are penalising their most loyal users, the ones that keep their SSA current and that have paid upfront for the specific licenses and this is not the most intelligent thing to do.

My ideal scenario:

  1. Keep SSA for those user that upgrade yearly.
    1. The subscription option that has the benefit of keeping the last version running.
    2. You can charge more for this yearly than switching to subscription.
  2. 3 version old users that want to get back on SSA should pay 2-3X the yearly subscription.
  3. Subscription users can pay $$$ extra to keep their current subscribed version as permanent, the retiring from practice option. This permanent version is not upgradable.
  4. There should be pricing options for AC only and AC+BimCloud and you can add or remove BC as necessary.

-----

There are 2 easy to understand advantages/difference in AC, it runs in macOS and you can buy permanent options. Removing either one will make users either go to Revit (the "standard") or go to VW (cheaper and macOS compatible).

Eduardo Rolón AIA NCARB
AC27 US/INT -> AC08

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

Have you considered VW may be part of the strategy? Or maybe I'm giving GS too much credit on the intelligence front...

 

"Sorry, but AC with BIMcloud is for the big earners, the rest of you can go find an alternative. Oh by the way, on your way out have a look at VW!"

 

VW could offer a transfer deal and from the Nemetschek shareholder's perspective they would retain their customer head count. You would still need your perpetual AC licence though if you wanted to access your old files.

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

I don't think they are playing 3dmentional chess…

Eduardo Rolón AIA NCARB
AC27 US/INT -> AC08

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

Just a clarification as I understand it.

Existing perpetual license owners are not being forced to change to subscription.

They can carry on paying the SSA/Forward fees into the future and as I understand it there is no time limit.

Yes, the fees for SSA/Forward will probably increase each year, but probably subscription fees will increase also.

SSA/Forward should remain cheaper than subscription seeing we already have paid for the software - I do not know if this will be the case, but I am assuming so.

 

There is an offer to change to subscription (with a 3 year same as SSA price that must be accepted by the end of this year to get the fixed price).

But this is only worth it if you want to have the additional BIMCloud licensing, or maybe you already have BIMCloud that you are paying additional license fees for.

Again my understanding is, if you accept this subscription, but then decide to stop it, you will still have your perpetual Archicad license - unclear what version this will be though.

 

Only from the end of this year, will it not be possible to by a new perpetual license.

Unless you already own one, and then you will have until the end of 2025.

After that there will be no more perpetual licenses for anyone.

 

I agree that there should be 2 subscription levels.

One that includes BIMCloud and one that doesn't.

Why pay for BIMCloud licenses that will not be needed - some of us don't need to use it.

 

And now the legal disclaimer.

This is just my understanding of what has been said by Graphisoft so far.

I am yet to confirm with my local distributor, because the offer is not yet in place in Australia.

 

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
rm
Advisor

I believe it’s naive to think GS is going to take the comments of a few very concerned users here on this forum about this topic. Me and perhaps some of you are small 1 - 3 person practices. Though GS was built by this loyal base up to the late 1990’s, GS now caters to the big firms and their needs.

 

If you wish to be heard, I would suggest posting calm, well reasoned concerns on LinkedIn. This is where a much broader architectural community will read these messages. I believe it would force a response - good or bad - from GS.

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

Mac OSX 13.1
AC 24 / 25 / 26

@rm wrote:

I believe it’s naive to think GS is going to take the comments of a few very concerned users here on this forum about this topic. Me and perhaps some of you are small 1 - 3 person practices. Though GS was built by this loyal base up to the late 1990’s, GS now caters to the big firms and their needs.

 

If you wish to be heard, I would suggest posting calm, well reasoned concerns on LinkedIn. This is where a much broader architectural community will read these messages. I believe it would force a response - good or bad - from GS.


 

Why post this thread then if they really feel that way about us and our concerns, and why bother presenting the opportunity to ask questions and present yourself as available to address them?

 

And by the way, I'm not saying you're wrong at all.

Quite the opposite.

 

You're almost certainly absolutely correct in that assessment if any of our dealings with Graphisoft over the  last 2 decades plus with them has taught us where their priorities now lie nowadays.

 

I'm just amazed at the cynicism on their part. in choosing to do so, knowing well they don't really intend nor care to address anything or engage in any form.

 

The only part I differ with you is in the belief that expressing any concerns in any other manner elsewhere, like on LinkedIn or some other forum is likely to be any more effective.

 

We now know that even the much vaunted "Insiders" user groups, the (originally) closed Beta-Testing groups and the "Key Client"-type gatherings where likewise pretty ineffective and ineffectual in ever getting them to hear things from the customer side and our point of view, so what difference would another forum and another tone of expression make?

 

The decision for this shift was already set in stone way prior to this announcement.

 

Everything else is just padding to soften the landing.

It's just a question of, "for whom?"

It doesn't seem to be for us.

 

Once upon a time, not that long long ago, we were assured that Graphisoft do indeed read user concerns and questions on this forum - even though it might not be directly but through a collated form, and  even though they may not respond to them in real time or otherwise......or at all...... (......sort of like we used to be taught how God hears prayers in in sunday school at church growing up. Fitting really, if you think about it).

So if those oldheads were not lying to us, then Graphisoft have read each and every one of these comments, and their silence should be answer enough for anyone still concerned.

 

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)