This is a post by Al Dean on PTC site.
There’s been a distinct shift in the last couple of years in the engineering and design production software technology industry. For many years, the technology vendors have relied on the steady, predictable nature of permanent licensing.
When you adopt a tool set, the theory is that you acquire the number of licenses you need, then pay annually for the maintenance and support of those tools – on an on-going basis. This, of course, keeps Wall Street and all those analysts and shareholders very happy – a continual revenue stream that’s very predictable on a quarter to quarter or year to year basis. So what’s changed?
The answer is that the world in which engineering and manufacturing is conducted is much more fluid and elastic than it has ever been before. Consider the human resourcing changes. Shorter term contracts are now the vogue. This allows companies to manage their resource in a manner that much closer follows the peaks and troughs of product development effort.