Sales revenue was 2.31 Billion in 2013, and gross income 2.07 Billion.

The "funny" thing is that while I read on the list the reason for shutting SI down is that they believe they can focus more on innovation this way.

But AD spent only 600 million of that money on R&D, and 2.83 Billion on "sales and administration". They spend way more money on selling the idea they are innovative, then they spend on actually trying to innovate. And when you consider how little innovation they have been able to squeeze out of a budget that is still humongous to smaller, much more innovative shops, it's simply embarrassing.

http://www.marketwatch.com/investing/stock/adsk/financials#

You can sell customers, or sheep as they are called in some business models, heaps of crap as long as you spend enough dough on convincing them it really doesn't stink, it's the sweet smell of innovation.

I suspect the peeps that pull the strings at AD really couldn't care less about clients or innovation as long as this attitude brings in higher profits. They wouldn't smell innovation even if it sat on their face. Softimage with ICE is one of the most innovative DCC packages they have on their hands, and even though they seem to understand that you need to spend at least some money to sell innovation, they couldn't be bothered to lift a single finger to sell SI.

but I'm rambling on..

-Ronald

On 3/15/2014 9:46, Matt Lind wrote:
I'm not throwing the baby out with the bathwater. What you have to understand is Autodesk doesn't want customers running concurrent sessions off a single license as in a Maya/Max and a Softimage session running in parallel. that would effectively allow double the users to work while paying only half the price. eg; if a customer has 50 licenses it would allow 50 maya + 50 softimage users to run concurrently, but pay for only 50 licenses. Some studios are ethical and wouldn't do something like that, but as someone mentioned just the other day, other studios in lesser affluent places might not be so ethical. Even if Softimage were included for free, it still consumes some amount of resources to ensure it still installs and runs as advertised.

I agree in principle Autodesk should continue Softimage until one of their other products can replace the functionality. If anything, that's the ball that was dropped in this whole debacle. Of all companies on the planet, you'd think the one with all the accumulated experience of all the products that went through this process in the 1990's would know better and be more prepared than anyone else. But what's done is done.

The problem with the theory of disgruntled users leaving and hurting Autodesk is that the Softimage user base isn't large enough to really be missed on Autodesk's bottom line. think about it. Only 8% of Autodesk's revenue comes from media and entertainment. Of that 8%, about 5% of it is from Softimage (0.4% total) - and that might be a generous number. For every $100 Autodesk earns in revenue, 40 cents comes from Softimage. Take out expenses and you're looking at much less.

I don't remember the actual number, but I thought somebody recently reported Autodesk earned $392 million last year. So, let's run that through the calculator:

   $392,000,000 USD * 0.004 = $1,568,000 Softimage gross revenue

I don't know what 10 developers in Singapore get paid, so I'll use conservative values based on USA rates:

   10 * $100,000 = $1,000,000

subtract expenses from revenue:

   $1,568,000 - $1,000,000 = $568,000

I don't know what marketing of Softimage costs, but I'm willing to bet $568,000 USD doesn't go very far for a product that needs a lot of attention to survive. Even if tripled, that's still lean. See the problem?

One item of note that probably hasn't been brought up in discussion yet is that Softimage has been included in the Max and Maya suites the past few years, so some sales of Max and Maya may actually be Softimage sales in a certain light - I know of at least one studio where that is the case. In that scenario Softimage is getting the short end of the stick when it comes to accounting.

I mourn the loss of Softimage as much as anybody having dedicated 21+ years of my life to it both as professional user and former owner of a Softimage certified training center. Sometimes life sucks.

Matt



--
Ronald van Vemden
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3D Graphics & Animation
Cyberfish Laboratories | www.cyberfish.nl
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