Imagine your company, YourCADShop, wants to expand with a new engineering wing. You can already envision the new carpets, polished glass desks, and computers loaded with up-to-date versions of all the essential software design engineers use.
Outfitted with seats of the best tools on the market, you can expect your team to crush it no time, right?
Sure, as long as money is no object. But the truth is that all that new design software can cost a lot up front. It can also introduce complications you may not have anticipated—all of which need even more money to solve. Think about these scenarios:
The new wing is working with a newer CAD software than the rest of the shop. Maybe you can’t help it, as the newest version is the only one offered by the software vendor. So what do you do? Run more than one version in house, leading to training and compatibility problems? Or do you update your entire office? Cha-ching!
The number of engineers on your team isn’t fixed. A growing company needs help today when a big project comes through. But you may not need that same help next year. So, you bring in contractors. So your talent pool is flexible, but is your software? Buying a seat for everyone who might need to work on the project means you pay for more software up front than you’ll need in the long run. It doesn’t seem fair. You’re stuck over-buying and ultimately leaving unused software on a shelf (we call that shelfware).
Capital expenses are much harder to justify than operational expenses. A big investment in software traditionally counts as a capital expense that your accountants will treat as an asset and depreciate over years. Compare capital expenses to operational expenses—budget that’s used to pay rents and buy office supplies. Operational expenses show up on the expense report, while capital expenses show up on the balance sheet.
Got all that? No? Let me rephrase. Usually, it’s easier to get money from the “operational” budget than the “capital” budget. Traditional, expensive software generally comes from the capital budget.
But there’s good news. PTC Subscription can overcome all these challenges when you expand. With PTC Subscription, yourCADShop gets the newest software, user licenses, and support at a much lower upfront cost. You choose the software you want to use, and whether you want any extras, like extensions or add ons. Subscribe to your PTC Creo software a la carte, or as part of scalable packages. And consider this: