Revisiting Software Costs

I saw this recent article speculating on Autodesk CEO Andrew Anagnost’s claim that his bullshit license costs for Revit did not represent a significant portion of revenues for the firms in the now-famous open letter to Autodesk. Not that we needed any analysis to know that Autodesk is full of shit, but it helps.

We know that architecture firms are too chicken to switch BIM authoring tools, which is why it doesn’t matter what Andy or the angry architects say to each other, but I thought it would be fun to see how low we could go with annual costs and see if we could match Andy’s claim that licensing fees equate to only 0.63% of revenues for the complaining firms (in this exercise it won’t be Revit’s fees though as we’re not going to get the math to work with their insanely high costs).

I’ll base my math on the same fictitious firm as the other article, which requires five licenses of everything. I’ll align my software selections as best I can to these categories which were created by the author of the other article:

Here’s my visual representing the annual software costs:

Everything here is US pricing in US dollars, excluding tax. Here’s my breakouts and footnotes for those costs:

  • Archicad: $800 x 5 = $4,000 2
  • Affinity Designer, Affinity Photo, Affinity Publisher: $0 3
  • Freshbooks: ($20 x 12) x 5 = $1,200
  • Twinmotion: $0 (included with Archicad)
  • Linea Sketch: $29.99 x 5 = $149.95
  • Google Drive: $0 (included with G Suite)
  • G Suite: ($6 x 12) x 5 = $360
  • Smartsheet: ($25 x 12) x 6 = $1,800
  • Freshbooks: (see above)
  • Google Chat: $0 (included with G Suite)
  • Google Meet: $0 (included with G Suite)

The annual costs related solely to the firm’s BIM authoring tool licenses (Archicad) come out to 0.62% of revenues (you’ll recall from the original article that annual revenues were $650K), slightly ahead of Andy’s claim for Revit. I was able to get the total software licensing costs down to 1.2% of the fictitious firm’s annual revenues. Maybe Andy was talking about his competition’s costs instead of Revit??? 😉


Footnotes:

  1. I was truly baffled by the inclusion of this category and especially SketchUp in the original article, so I put in my favorite sketching app figuring this is kind of what they meant with this category 🤷🏻‍♂️
  2. Archicad has an initial cost per perpetual license around $5K which represents one-time up front costs
  3. The Affinity apps have initial costs of $49.99 each app, per perpetual license that are one-time up front costs

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