Why CAD Software Shifts From License-Based to Subscription-Based Model
The computer-aided design (CAD) software market is very well developed. In the US alone, it stood at $2,458 million, in 2020. Many industries use CADs in their operations, primarily in the packaging and automotive fields.
The packaging industry has experienced a surge because systems needed for its operations are becoming increasingly complex. This, in turn, makes designers use more CAD software to get along with the demand.
And the amount of money spent on the software is only expected to grow up to $4,271 million by 2030. The COVID-19 pandemic has slowed the progress down a bit, but the growth will continue. Today when everything gets digitalized daily, many CAD software producers turn away from selling licenses and use subscription pricing instead. Let’s see why they do that and what benefits are there for designers and customers.
The design world is changing, and the software has to change too
New technologies like 3D printers are changing the way of manufacturing things. By now, the times when a company linearly designed a product and produced thousands of copies are gone. Today, companies that orient their users’ needs and customize their designs win. Also, producers are aware that the age of the Internet of Things (IoT) is coming and design their products in the new framework.
Despite all these changes, desktop applications for CAD software are here to stay for a long time. But even they are bound to become constantly cloud-connected to facilitate information exchange. Keeping things in a cloud also helps to centralize data in a single node, resulting in increased spending on security measures, but is a handful in organizing data. And also, 3D modeling requires a lot of resources which even top-tier PC can’t provide. Subscription-based cloud computing services can help solve this issue.
And since companies don’t usually need all cloud services at once, a subscription is a way better option.
Subscriptions add more flexibility to design
No matter how successful, a business model can’t withstand changes forever. Sooner or later, a new thing will change how people run a business in a particular sector, and the old ways will stop working. And the needs of customers are constantly evolving as well.
Subscriptions make it possible for businesses to adapt to changes in real-time in accordance with the changing market. You can add up and cancel subscriptions and regulate your workflow based on your needs. You may notice that you have taken too many projects and projections indicate a potential risk of skipping deadlines, then slow down a bit. And if the business is booming and you can take more, then scale up.
Licensing in the software doesn’t provide this kind of flexibility. If you bought a premium, you get the entire package whether you need all the parts or not. Clients tend to grow used to just upgrading a license on a product since there is usually a discount. But transparency, freedom, and flexibility of the subscription model are bound to win in the long run.
Subscriptions cost less and make it easier to plan a budget
A company needs to buy a license each time a new update emerges. It may be very costly and hard for a small business, resulting in less predictable budgeting. Subscriptions allow users to change what parts of the software they want to buy. Should you not require a license, then you don’t have to renew it. This means that your funds can be allocated elsewhere, like research, development, and manufacturing.
Subscriptions simplify the workload
A cloud-based IT environment helps engineers stay focused on the product instead of looking for ways to increase computing power or compromise on some features. You can manage your software resources in the way you see fit. Also, you don’t have to adjust the number of employees to the demands of a license. When peak demand comes, just get a more comprehensive subscription option, and remove it when you don’t need it.
This allows managers to lower administration costs and respond quickly to changes in supply and demand.
Subscription-based infrastructure is easy to manage
When an update to specific software comes, it is deployed automatically. This serves greater efficiency and accuracy and allows you to adapt to market demands more quickly.
The number of digital solutions in CAD data grows almost daily. And buying a license for everything is hardly possible, even for a large corporation. In today’s world of easy, centralized, and mobile-friendly solutions, subscriptions make it possible to adjust the software to any needs. Many software providers have already changed their business models in this way. Autodesk is the best example.
We encourage you to check the service for a subscription option before spending all your money on a license. No one can save your money better than you.
