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Posts Tagged ‘subscription’

Push for better Subscription options

February 3rd, 2009 No comments

jeffray

richwelch

Are you going to SolidWorks World? See these two faces? If you see either of these fellows in Orlando, stop them in the hall and tell them you want meaningful subscription options. Tell them the one-size-fits-all / all-or-nothing “option” is not worth paying for. Print this url on your business card and give it to them:  http://dezignstuff.com/blog/?p=342 Make sure that they know that you know that they made a promise 6 months ago which they have not yet made any move to satisfy. 

Last August, folks on this blog made a huge stink about lack of subscription value and options. SolidWorks World is your chance to do something more concrete: confront these two people face to face and ask them what their plan is. So far the plan has been to just get the mob quiet and let it blow over, then back to business as usual.

Categories: CAD Biz, subscription Tags:

The complete (and corrected) lapsed version penalty story

August 26th, 2008 5 comments

 A reseller friend of mine set me straight on the entire lapsed version penalty story. Thanks, I appreciate it. I was making it a lot worse than it was. I have to apologize to jiminmpls for mistakenly laying into him. 

Regardless, it’s still throwing money away. The penalty was the catalyst for the whole discussion, but it turns out to be a footnote in what people are most upset about. Anyway, here is the straight scoop: 

With the new policy, effective October 15, 2008, a customer who purchases SolidWorks without subscription and decides to add subscription:

 * Purchase subscription 1-2 months after SolidWorks purchase: total cost $100 + annual subscription

 * Purchase subscription 2-4 months after SolidWorks purchase: total cost $500 + annual subscription

 For lapsed SolidWorks maintenance contracts:

 * Renew subscription 0-1 month late: total cost $100 + annual subscription

 * Renew subscription 1-3 months late: total cost $500 + annual subscription

 * Renew subscription between >4 months and within 1 year late: total cost $850 + annual subscription

* After 1 year: total cost is total years missed x $850 + annual subscription

Categories: subscription Tags:

Suscription model voting

August 26th, 2008 9 comments

Ok, you pushed me to it. This is the closest thing I will do to a petition on this site. Ben may set one up on his. 

I’ve got 3 polls. Descriptions of the subscription models for the first one are below:

Subscription Model 1

Keep things exactly the way they are.

Subscription Model 2

Keep things the way they are but get rid of penalties for old versions. Come and go from subscription as you please.

Subscription Model 3

Split subscription into:
- reseller support annual contract ~$800/yr, with some discount for quantity
- new versions purchased separately, cost depends on how many versions you have skipped
- access to customer portal until you stop buying new versions
- service packs are free
- web forum free

Subscription Model 4

Split subscription into:
- reseller support per incident or hourly
- new versions purchased separately, cost depends on how many versions you have skipped
- access to customer portal until you stop buying new versions
- service packs are free
- web forum free

Subscription Model 5

Split subscription into:
- reseller support either per incident or annual contract
- new versions on an 18 month cycle
- purchased separately, cost depends on how many versions you have skipped, ranging from $700 – $3000 max
- access to customer portal until you stop buying new versions
- service packs are free
- web forum free

Subscription Model 6

- reseller support either per incident or annual contract
- annual contract for new versions, delivered in incremental releases that add specific functionality rather than massive service packs that affect the whole software

Subscription Model 7

- SW direct support annual or per incident
- new versions purchased separately, cost depends on how many versions you have skipped


Categories: subscription Tags:

Commenters recommend subscription changes

August 25th, 2008 20 comments

This post is mainly my summary and commentary based on comments from the last 5 posts. I’ll start by summarizing what has already happened. It is hugely long because there are so many facets to the problem.

Goal

The goal here is to propose a model for revamping SolidWorks subscription (maintenance, support and new versions) offerings. SolidWorks says they are a customer driven company, and this will put that assertion to the test. My guess is that when they run the numbers they have more to lose by allowing people to choose what they need instead of forcing them to buy what they don’t need or want than they have to gain by perceived good will toward all customers. So we will see if this is a customer driven company or a bean counter driven company. Time to put your money where your mouth is, SolidWorks.

Background

This started as a simple notice that a late fee that few people ever actually pay is being increased almost 50%. It turns out that if you want to skip a year of maintenance (support and new versions), it winds up costing you more money than if you stay on maintenance. This late fee is clearly meant as a deterrent, not an additional fund raising scheme. SolidWorks uses the threat of assessing the fee to keep you from lapsing on maintenance payments. My guess is that once weened from that maintenance teat, former customers tend to not go back.

I’m guessing that what prompted SW to increase this fee is that people are not re-upping for subscription after the 2008 release. I still believe that the overall average perception of SW08 is that it was among the worst releases ever - full of half completed changes, the most extreme changes used as defaults, miscalculated new features, too much visual fluff, obsoleted not-so-old hardware at an alarming rate, required too much retraining, and overall shows that the SolidWorks Corporation is not in touch with the majority of real users.

My opinion here is that SolidWorks should not charge its users for its own mistakes. SW08 was a mistake. I think it’s a mistake big enough for someone to lose their job over, although I’m not in a position to say who. They took a risk, and were bitten by the downside. I don’t think charging customers for the failed attempt is the right thing to do.

Rewarding loyal customers 

Last SolidWorks World, I started asking people (Wilkinson, Hiss) in interviews what SolidWorks was doing to reward loyalty from long time users. I don’t think I got any clear answers. Between the new late fee and the interface changes that erased many of the gains SW has made over the years, I think we have our answer. I need to say that some of the 2008 interface changes were positive, but I can show quantitatively for most of the  so-called improvements, there are mitigating factors that offset their effectiveness. Two steps forward, two steps back. In several cases, the new functionality is unquestionably inferior to the old functionality (removing CommandManager options, removing slider and splitter bars, removing the ability to remove face colors, the entire 2008 colors/appearances scheme, using left click context bars from the FeatureManager, removing interface images from the documentation, and I’m sure there are many more).

Hit a nerve

I knew when I decided to write this short post that it was going to create a stir. Some people like Rob Rodriguez and Devon Sowell have subscription as a bit of a pet peeve. I wasn’t really prepared for what happened, though. I had 75 comments over the course of 3 days. My average is probably 3 comments per post, and I post 2-3 x per week. I was getting 1200 hits a day for a couple of posts and the main page. My usual is 300 – 400 hits per day for the main page. I got 6 notices about new forums that people wanted me to contribute to. Usually, this doesn’t happen at all. I’ve never had a SW VP comment on my blog before. I had a couple of SW employees contact me about the blog, which only has happened a couple of times before. A couple of people who are upbeat about almost everything commented that they didn’t like the looks of this one (Ricky J and SolidSmack).

So yes, I hit a nerve. Subscription is the 800 lb gorilla at most user group meetings. People want to express outrage, but they don’t do it because it feels futile, and because it has been done so many times before. This is how a stupid fee that no one ever pays turned into the biggest train wreck Matt Writes has ever seen.

Lipstick on the pig

So SolidWorks is trying to attract new users through a sexy consumer product-ish “lipstick on the pig” approach, and yanking the rug out from under loyal customers. The sexy new colors, visual effects, backgrounds, shadows, reflections, Appearances, RealView and what not combine I’m sure to look spell binding in demos to Inventor users, but in practice for existing users are very much a distraction. Why have resources been squandered on this kind of thing instead of improving functionality? These issues are cosmetic, and treat the SolidWorks software as if it is a new way to package Barbie dolls instead of an engineering tool. To me, this is incredibly misguided, a waste of time and resources, and displays an out of touch mentality. Of course you can find people who find things like this useful, but you can say the same for Toolbox, Deform Surface Push and the Undercut Detection.

The match

When I was told that Rich Welch was going to make a public statement that would clear up the misconceptions about the late fees, I was momentarily appeased, but kind of wondered what misconceptions there were. The notice that went out was pretty clear except that it allows for first a $500 fee to be charged, and then an additional $850 fee. 

Unfortunately, Welch simply threw a match into the building with some incredibly poorly chosen words, and then attempted to put out the fire by dousing it with gasoline. This self immolation was an incredible thing to behold. Here we have a guy at VP level who aparently has never seen a real user before, and doesn’t stay in touch with what real users have to say about anything. I personally don’t think Mr. Welch can effectively continue at a job in Customer Services at SolidWorks Corp after this train wreck. Really, I mean I can’t avoid laughing out loud thinking about the situation. Not the fact that he could and should lose his job, which would be personally tragic for him, but just exactly how naively stupid could he be, talking in a condescending fashion to users during a minor crisis? The Vice President of User Services?!?!? Who could possibly have any confidence left in a guy like that in such an important leadership role? If you haven’t read it, you owe it to yourself to do so. Read the 5 posts immediately preceding this one.

What users want

I took a poll that suggests that most users who answered the poll are paying their subscription, but that they don’t think they get good value for that money. Most users find their resellers are not all that they should be. People seem to be split on the service pack issue, whether the SPs are of much value, if they should be free, or if they should not exist at all.

A previous poll seems to suggest that people on average think that a new version every 18 months is about right. This would mean that a yearly subscription in many cases would not allow a user to get a new version of the software. Users are not thinking in terms of annual subscription because it is an artificial model forced on them by accountants, not something that naturally suggests itself from the practical realities of using, supporting and maintaining software. You can build a building while ignoring the realities of gravity, but that story will have a bad ending. I think SolidWorks needs to pay more attention to natural forces than imposed goals achieved by any means available.

Users want options. Many users expressed a distaste for paying for service from a reseller who simply is not capable of providing the service. Others expressed distaste for paying for bug fixes which should be free anyway. Some users think the software should be closer to actually complete when it is released.

SolidWorks is in the business of forcing customers to buy stuff they don’t need. This is the only believable explanation for eliminating SW Office several years ago. You can’t get Photoworks without also buying PDMWorks. Your choices are stripped down SW or the Office suite with PDMW.

I think the days of the one-size-fits-all, all-or-nothing subscription are long past its usefulness. These days there is a wider range of SW users than ever before. Some users are far more sophisticated than even the best resellers. Some are new or part time users, late comers to parametrics, 3D and the entire concept. You cannot use the same model to support the entire range.

Users want SW to test their software more thoroughly, rather than forcing customers to actually pay to help debug released software. Its PREPOSTEROUS! All software has bugs, sure, but SolidWorks releases software with maybe thousands of known bugs. Why do we pay to do beta testing if you aren’t even gonna fix the freaking bugs we find in beta?  Why do we volunteer to do alpha testing if you don’t fix the conceptual errors in the software?

Divide and conquer

Overall, most of the comments from users were well thought out, and only a few qualify as emotional rants. The same themes keep appearing again and again. The one thing that has happened here is that users see that even though they may use the software differently, we have very similar needs on the business side of things. Once people start talking and realizing that they have ideas in common, it became a common cause.

I’m sure this is why SolidWorks uses the “divide and conquer” psychology in their enhancement request process. They can conquer each of us individually, but if we ever banded together, we could beat them. Throwing data down a black hole on the SolidWorks site never results in a community reaction like what has happened here. It just results in frustration and resignation.

I did have a couple of reseller employees comment, and interestingly enough they waited until the very end to say anything.

The problem of resellers

Resellers can be good or bad. In fact, within a single organization you can have individuals that do a good job and individuals tht do a bad job. So it’s not always a simple thing to say that “resellers suck” because it’s not always true. And even in a sucky reseller organization, there are usually good individuals.

Anyway, I’m not so concerned with whether resellers suck or not. They either do or do not. I’m more concerned that SW can not do business without resellers. So while I may agree with some of the reasons for users wanting to eliminate resellers, it’s just not a realistic part of the solution.

On the other hand, resellers get fat on the SW subscription money, and if I were a betting sort, I would bet on that several resellers saw their subscription money going down after 2008 and complained to SW Corp to do something about it. I’ve seen good resellers hit rock bottom when it comes to the quality of technical support they provide. There is no incentive to provide good support because in order to do that, they would have to hire top notch users instead of beginners to do tech support. Many…(most?)… resellers hire people who don’t even know the software to do tech support. Again, this is not universal, because some resellers do provide quality service that is worth paying for.

Quite honestly, the best support comes from other users on the forums. Rarely a reseller will have insight into a problem that other do not. SolidWorks could hardly insulate its users from any more technical information than they do now, but users find a way, and the information gets out. Yes, I am implying that SolidWorks holds information hostage trying to prop up the value of the reseller chain in general.

Does this mean hard times for the resellers instead of just milking that ol’ cash cow and never feeding it? For some, yes. Evolve or perish. You can’t keep working off of the old PTC model to constantly bilk customers.

Answer?

To me it seems clear. In order to incentivize resellers to provide great support, we should stop subsidizing bad support. People who don’t want support still want new versions and service packs. So what’s happening is that SW is subsidizing resellers by forcing users to pay for support that in many cases doesn’t exist, and the customer doesn’t want or can’t use.

Separate goods from services. If you want technical support from your reseller, pay for it. If you don’t, don’t. Could anything make any more sense? If you want new versions, pay for them. If you don’t, don’t.

Service packs should be free.  I will stick to that one. You can’t bundle new functionality with bug fixes and act like that justifies forcing people to pay for bug fixes. Common work ethic demands that you are responsible for fixing your own mistakes, especially if your customers are the ones who identify them for you.

How much?

Say the software is $4000, because you can still get a version for that price. If you want full boat support, you can get it for $1295, just like now. If you want just tech support, that’s at a rate you can negotiate with your reseller, say $500 annually per license with a 30% progressive discount for each additional license, or on a per incident or hourly basis, say $50-100 per incident depending on how involved it is.

If you want just upgrades, say that’s fixed at $800 for the next consecutive version, $1200 to upgrade after skipping a version, until maybe after skipping 5 versions the upgrade fee caps out at maybe $3000. You always get some benefit from having been a customer, instead of the current plan, where they have a fair price for new customers but rape old customers.

Service packs are free. Do you hear me? So if people don’t want to upgrade until SP5, that’s fine.

You also have to determine what kind of support is expected just from buying the software:

- help with getting a serial number and whatever it takes to activate the license

- bug reports

Resellers should not be responsible for answering “how to” questions for people who are not on support. Anything beyond that is paid support, training or consulting. We have to stop subsidizing resellers who don’t provide good support. If a reseller offers tech support, training, and consulting, where does he put his top people? Of course, in consulting. That is the one area where competence matters. Tech support is a throw away, because, what if your support sucks? There are no consequences. If your training sucks, well, at least you still have the corporate manuals, which are worth something. But even with training, SW keeps info from users so well that they almost have to go to official training to learn how to use the software. So that is half subsidized as well.

If you stop subsidizing bad support and mediocre training, those areas will improve. Stop subsidizing by allowing users to choose which they want to pay for.

One of the favorite reseller tricks about tech support is to say “this is beyond the scope of technical support, may I suggest Advanced Assemblies training class next month?” What really is tech support? Is it for stupid “how to” questions? Is it for new release stuff? Are hardware, OS or network problems in the realm of tech support? Is it only for bugs or workarounds? Should it cover complex solutions that might be considered consulting? It’s a tough question to answer, and I don’t think this is really defined anywhere.

And here’s one that just from me personally. SolidWorks does not MAKE me productive. I make myself productive. Rich talks about the software as if you could set a toilet in front of the computer and it would be productive if the computer had SolidWorks on it. I really resent this stupid attitude. It is only the combination of a user with know how and a particular project need that makes productivity. And frankly, I think the user is a better judge of productivity than someone sitting in an office in Concord contemplating navel fuzz.

And another one from me personally. Long time users and advanced users are almost completely overlooked by SW. SW seems to be focussed on converting new users rather than keeping old ones. I read somewhere that it costs 8X as much to regain a former customer as to retain an existing customer.

If SW tries to charge for its forums, they will die and everyone will go to Eng-Tips or somewhere else. The forums are currently the best place for support, as comp.cad.solidworks was for many years before.

Product Quality

This topic is a perennial favorite. The last time it was addressed formally was with Richard Welch, and of course there were all of these assertions that SW was doing everything humanly possible to make sure the product was the best it could be. Of course nothing really improved.

My biggest gripe about the quality of the SW software is that it is perpetually half done. The biggest problems are the little things that never get fixed. You have to be on subscription because if you aren’t you’re going to have a big hassle getting service packs, and you need service packs because the software has so many bugs and there is such a rabid inclination to upgrade as soon as the software is released.

SW should at least provide what has become known as SP3 quality at initial release. SP3 is the “best practice” adoption date that  many companies go by. You should be able to use released software right out of the box. Common work ethic, guys. Have a little pride in what you do. You don’t even bother fixing beta bugs that you know about. This is inexcusable, especially if you want to charge people extra for support.

Moving forward with Subscription overhaul

August 20th, 2008 25 comments

It seems self evident to me that the only thing we are going to get from Rich Welch is a lecture on how wrong we are and why we are so wrong. Let’s just assume that we can still accomplish something without him. Change like what most of you have been suggesting will extend far beyond his authority anyway.

So, let’s do this. Let’s just assume (delusional or not) that SolidWorks users can overhaul the subscription service model to something that works for us and is fair to both sides. Let’s assume that we can do whatever we want. Some people have already been submitting new models for subscription plan via comments. Let’s do more of this. After a few days of submitting plans, I will try to summarize a dozen or so options, and put together another poll to let you all vote for the subscription plans that you think are most realistic.

Let’s try to be realistic. Ideally, I’d like to get perfect software for free, and have SW do my work for me, but that’s not gonna happen. On the other end, what we have now, when seen objectively is equally unrealistic. Let’s throw all assumptions on the table. We need CAD software. Some of us need support. Some of us need training. Some of us need consultation. Some of us need service packs. Some of us only want finished software. None of us want to pay for stuff we don’t need. None of us want buggy software, but we all have different tolerance levels for what “buggy” means. Try to incorporate resellers into your scenario.

 

Start the ideas rolling in as comments. Read through the comments on this thread as well.

Categories: subscription Tags:

Don’t take my word for it

August 20th, 2008 7 comments

Everybody knows I’ve got a little of the troublemaker about me, so this kind of train wreck can be expected here. But I’m not the only one writing about this. Other well respected SolidWorks users are talking too. We’re not all exactly on the same page, Mike Puckett seems to be trying to deflate what ever is happening here, not sure I really understand what he is saying. Still, you should read all points of view and make your mind up for yourself.

Rob Rodriguez:

http://www.robrodriguezblog.com/2008/08/time-to-push-ba.html#comments

Devon Sowell:

http://designsmarter.typepad.com/devonsowell/2008/08/solidworks-show.html

Ralph Grabowski:

http://worldcadaccess.typepad.com/blog/2008/08/subs-will-become-more-expensive-get-used-to-it.html

Mike Puckett:

http://www.mikescadblog.com/2008/08/over-the-past-f.html

A couple of people are trying to come up with some sort of an appropriate response to this. Something smarter than what Mr. Welch did (running into a burning building and pouring gasoline on himself). As I have done with previous events like this such as the documentation furor (which by the way is not yet showing much in terms of results in SW09), I’ll try to moderate some sort of discussion with SW. I’m sure I’ll get some help from the rest of the user community. I can’t guarantee a change, but I think I can guarantee a discussion.

I will start to collect user comments on specific issues. My goal is to redirect the energy of an angry mob into some concrete recommendations that make sense from both sides of the fence.

Part of the difficulty here is the reseller model. While the reseller model has been a good portion of the reason for SW’s success, it is also its greatest weakness. Users find that they really don’t need or want the services that resellers provide, but the resellers survive on the subscription money. I think the reseller model needs to adapt, but I’m not sure how big a tail needs to be to wag a dog that big.

Categories: subscription Tags:

Response from Richard Welch, SW VP Customer Services

August 19th, 2008 13 comments

Mr. Welch added a comment to the discussion, but I thought what he has to say warrants a new post:

Hey guys
Let’s address the two issues raised here individually. First, the issue of the late fees.
There is a very small handful of customers who let their subscription support lapse, but continue to take advantage of the benefits of paid support for weeks, months, or even years before renewing their service. These late fees have existed since SolidWorks was founded in 1995 as a way to recoup some of the money that we lose by providing ongoing support to these customers while the vast majority of customers continue to pay for support on schedule. Again, these late fees are nothing new—they’ve existed since the subscription support program began, and have historically been applied only to those very few customers who opt to stay on a specific version of software for an extended period of time. If you take a look at the document Matt posted, you’ll notice that it’s not discussing a new policy, but that the late fee is simply increasing by $350 for people who go past a new time threshold. Like Matt has said himself, this only affects people who have been using subscription support but have not paid for it for more than 120 days/3 months.

As to the second issue regarding the increase in the fees themselves, there are a few reasons why the new tier and price was added. There are major improvements in the product itself that warrant ongoing investment in both core functionality (performance and quality) as well as new functions.  These new functions require more support in order to make our customers as productive as possible.  And, all of the revenue generated from these subscription program fees is 100% dedicated to improving and enhancing the software’s functionality so that our customers can be more productive and efficient.  It costs SolidWorks money to continue to provide subscription-level support to people who aren’t paying for it. There’s also the fact that things just cost more over time.  And again, this late fee increase doesn’t affect the overwhelming majority of our customers—only those who continue to take advantage of support past that 120-day/3 month period.
Does that make sense to everyone?

If not, let me know.

Rich Welch – VP Customer Services SolidWorks

I’m kind of flattered that a SW vp took the time to try to clarify a few things, or at least to adjust the spin. I have a couple comments on Mr. Welch’s comment:

According to the email I got, the first penalty of $500 shows up at 61 days after renewal date. If you buy the software without subscription and after 120 days want to get subscription, or allow your subscription to lapse more than 120 days, that costs whatever the subscription was plus $850. If you lapse for 2 years you have to pay 2*$850 + 2*(annual subscription). As Grabowski says, you are paying for more for not being on subscription than you would pay for being on it. The clear intention here is as a deterrent. Recouping costs? Really? hmmm.

My impression is that most people want to go the other way. This is why I think people who this doesn’t apply to are upset. If you look at the poll from the last post, most people subscribe even though they don’t think they are getting much value for that money. I think people want the option to drop the support, and  have an economical plan for just buying upgrades.

Plus, frankly, I don’t buy the explanation that resellers want to recoup money for supporting people who don’t pay for it. I worked for resellers, and I know how many non-support people get support. Very few. Besides, there are much better places to get support than resellers.

I think this is an intimidation tactic to prevent people from allowing support payments to lapse. It is not a way to raise money from the fees. So few people will pay the fees that the additional income won’t offset the grief of making the decree. The main goal of the fees is to make sure that people never pay them, but they pay the subscription religiously. It’s a deterrent.

I think it was necessary because 2008 was a disaster and has cost SW and its resellers a lot of maintenance contracts.

Categories: CAD admin, subscription Tags:

Change to Subscription terms: What do you think?

August 18th, 2008 35 comments

If you haven’t heard from your friendly neighborhood SolidWorks reseller yet, you will. The terms of SolidWorks subscription services are changing. It seems the main force of the change is that the penalties for missing a year of subscription are going up. Here is a screen shot of the letter from my reseller:

This is a dangerous gauntlet for SW to throw down. They are betting that this is just going to scare people into never letting their subscription lapse. But what if it confirms that the subscription is simply not worth the check you have to write? For me personally, the reseller provides nothing of value whatsoever, not to say that this is everyone’s experience, it’s just mine. The service packs are of dubious value. In 2008, how many *.1 releases did we have? 0.1, 1.1, 2.1, 3.1? *.1 releases mean that there were errors that no one counted on. Too many sloppy mistakes.

It’s a little maddening to me, because I pay the subscription mainly as a formality. I have a license by virtue of being a partner (in the Publishing category) and a commercial license for which I have to pay maintenance. I still do commercial work alongside my writing activities, so technically I need a commercial license for that work. Of course I haven’t had the commercial license installed for a couple of years.

With the SW08 release, I’m sure more than a few companies have bailed out of the subscription treadmill. This new policy may be aimed at intimidating these customers or former customers into hopping back on. With such a junk release (08) immediately after a reasonably usable release (07), its easy to see why people would just freeze at 07 and choose to forego updates.

What do you think of the “subscription treadmill”? Does this new policy look like corporate bullying to you? Do you think you get your money’s worth out of your subscription money?


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