The Future of Software Delivery: PTC Introduces New ALM Subscription Options

The simplest and most straightforward way to market just about any technology – including ours -- is to build products that surprise and delight your customers.

Note I said “simplest”, not “easiest”. That’s because building products that consistently surprise and delight is actually exceedingly difficult. It requires mastering the delicate balance between the art of the possible and the art of the practical. We want to drive forward-thinking ideas into the marketplace with products that inspire, gratify, and deliver quantum leaps in value. At the same time, we need to respect the resource, quality and time constraints we all live under.

It’s with this in mind that I am happy to announce a new family of ALM solutions that will keep PTC, as a software vendor, squarely in the cross-hairs of this ongoing quest.

Typically when we announce new offerings, we do so with respect to new features—things that enable our customers to work smarter, save time, reduce risk and improve quality. While we have made significant enhancements to our products over the past six months, this is not that type of announcement.

Instead, we’re announcing a new way to buy our ALM products: through bundles of capabilities (we call them solutions) that simplify the way customers select, manage and administer licensing across PTC’s software and systems engineering portfolio.

Here are the four new solutions, available exclusively through subscription licensing:

Our new solutions were specially designed to provide a significant incentive to acquire our software via subscription licensing, which is familiar to many customers but new to others. As a result, each solution packs a lot of value into one bundle. For example, our new Model-Based Systems Engineering (MBSE) solution delivers systems engineering best practices, SysML modeling, product line engineering, model simulation, automated model reviews and asset management in one bundle, delivering a complete platform for MBSE transformation.

Why are we moving to a subscription model? Customer surveys show that 90% of PTC customers actually prefer subscription over perpetual licenses. Since they can be acquired as part of an annual operating budget, subscription licenses are typically easier to acquire. They can free up capital budgets to invest in innovation. And they help you outfit your teams with the exact mix of software you need on an annual basis.

Yet all of these motivations – while completely true – don’t get to the essential reason we moved to subscription. Because the heart of the matter is this: We are moving to subscription licensing in order to move – with you, our customers – into the future of software delivery.

It’s part of a series of moves that is hurtling us all towards the smart, connected world of the future, in which we will increasingly rent software instead of buying it, deliver services instead of things, and sell experiences and outcomes instead of physical objects.

As we move together into this exciting new realm, we’ll need to partner with customers even more closely to deliver the value they expect from their ALM investments. When companies buy software through perpetual licenses, they buy the right to use our software forever, or in perpetuity. Perpetual licenses are more “sticky” than subscription licensing. The commitment, payback and ROI are typically longer as well.

Subscription licenses, on the other hand, are more flexible. This flexibility means that we as a vendor will have to work even harder to earn our customers’ trust on an annual basis. We will have to think bigger, deliver more reliably, and prioritize more effectively.

And that’s, I hope, where you come in.

As you explore our subscription offerings (which I hope you will!) I also hope you will consider engaging in the type of community participation that help make us a more responsive vendor. Consider joining the ALM Tech Committee, the ALM customer governing body organized through PTC User. Reach out to your PTC account representative to share your joys and challenges. Or share your ALM victories (and challenges!) with customers and our leadership team at one of our many customer events around the world.
Whether or not we are surprised, we are always delighted to hear from you.

For more information on the new subscription packages, please read our press release or visit our solutions Web page, where you will find our solutions brochure and datasheets.