Tag: Autodesk

Autodesk slumps thanks to cloudy subscription model

grandpa_simpson_yelling_at_cloudThe software subscription model is taking a beating after the maker of computer-aided design (CAD) software, Autodesk cut its full-year profit and revenue forecast for the second time this year, sending its shares down seven percent.

Autodesk also reported lower than expected quarterly revenue as its licensing revenue declined because of the company’s shift to a cloud based subscription model.

The company said it expects revenue of $2.47 billion-$2.50 billion for the year. In May, the company forecast 2016 revenue growth of two to four percent, compared with fiscal 2015, implying revenue of $2.56 billion to $2.61 billion.

Analysts on average were expecting revenue of $2.59 billion.

Chief Executive Carl Bass said during a conference call said that the company had updated its revenue outlook based on a greater than expected portion of its sales shifting from perpetual licences to new subscription types.

Subscriptions bring in less money upfront as payment is spread over the entire period of use unlike traditional packaged software, but typically ensure more predictable recurring revenue.

However, the company maintained its full-year forecast for billing growth and net subscription additions.

The company’s licensing and subscription revenue, which accounts for nearly half of its total revenue, fell 17 percent in the second quarter ending July 31, from a year earlier.

The company reported a net loss of $235.5 million, or $1.04 per share, for the second quarter, compared with a profit of $31.3 million, or 13 cents per share, a year earlier.

Revenues fell 4.3 percent to $609.5 million, missing the average analyst estimate of $612.4 million.

 

Box pushes, with force, into EMEA channel

boxfactoryEnterprise cloud and collaboration company Box is launching a channel partner programme packed with incentives and organised by industry veterans to boost growth in the UK and EMEA.

The Silicon Valley firm posted an impressive end of fiscal year in 2012 with its technology in roughly 150,000 enterprises and with about 15 million users, channel director Chris Penner told ChannelEye, along with over 17,000 developers actively building custom apps for the platform. Pre-partner programme, the company has been busy boosting its roster of seasoned executives and went on a poaching spree over a six month period, bringing on staff with experience at Salesforce, VMware, HP, NetApp, Cisco and more to make sure it gets the channel strategy right on the first try.

One such hire is David Quantrell, who joined Box in September 2012 to run Box’s channel strategy in EMEA. Prior to this role he was President, EMEA for McAfee, and also has experience at HP and Nortel.

Wayne Cook, another hire, was previously at McAfee and is now a VP for channel and alliances at Box.

Penner told us that for the poached staff, moving over to Box presented an opportunity “of a lifetime” in a company that is well positioned with proper venture backing, a tremendous install base, and $40 billion pre-IPO. “A lot of ingredients that don’t come along every day,” Penner said. “We are building a really fundamental industry leading channel”.

Box Partner Network will create an “ecosystem of strategic alliance, channel and platform partners” that will bring Box’s content into new markets and, it hopes, drive further lofty aims of expansion. In a press release, the company boasted that, although in relative infancy, the company already had tons of big business clients signed up, including EA, NBC, Nationwide, Discovery Communications, Sony Music, and Netflix.

Starting partners include Autodesk, AtTask, Fonality, Marketo, CollabNet, Clarizen, TIBCO, Tidemark, and Xero – while five new partners, CollabNet, Clarizen, Fonality, tibbr, and Tidemark, will be tasked with leveraging the Box Embed HTML5 framework introduced late last year.

50 resellers have been signed up on a global basis over the last four months, including big hitters such as Ingroam Micro.

Interested channel players should head here.

As for Box’s position in the tech industry, Penner is optimistic: he tells us that end users love the service for its collaboration tools and simplicity, while IT likes Box because they know exactly what technology is going to be on premises and can control and manage every level of content in a secure manner – which is not the case for consumer alternatives, Penner said.