Autodesk 2000 Annual Report Download - page 13

12 FY 00 Autodesk, Inc.
Autodesk’s ability to effectively distribute its products
depends in part upon the financial and business con-
dition of its VAR network. Although Autodesk is not
currently experiencing any material problems with its
VAR network, computer software resellers and distrib-
utors are typically not highly capitalized, have tended
to experience difficulties during times of economic
contraction and during periods of technology-market
price pressure, and may do so in the future. While no
single customer accounted for more than 10 percent
of Autodesk’s consolidated revenues in any of fiscal
years 2000, 1999 or 1998, the loss of, or a significant
reduction in, business with any one of Autodesk’s
major international distributors or large U.S. resellers
could harm Autodesk’s business.
Autodesk intends to continue to make its products
available in foreign languages and expects that for-
eign sales will continue to contribute a significant
portion of its consolidated revenues.
Customer and Reseller Support
Autodesk provides technical support and training to
customers through a leveraged model,augmented by
programs designed to address specific direct needs.
We expect that end users rely primarily on their resellers
and distributors for technical support. Autodesk sup-
port the resellers and distributors through technical
product training,sales training classes and direct tele-
phone support. Support content is also available on
the Product Support portion of the Autodesk Internet
site. There are also a number of user group forums in
which customers are able to share information.
While Autodesk expects the sales channel to provide
the majority of technical support to its customers, it
has developed programs to deliver direct support
to certain customers. The Premier Support program
enables large customers to purchase an annual sup-
port contract, which provides unlimited support for
designated callers. In addition, Autodesk provides
per-incident direct phone support to end users under
the Safety Net Program. This is a fee-based program
that allows customers to contact Autodesk directly.
Customer technical training is also leveraged through
the authorized Autodesk Training Center, or ATC®,
program; there are more than 700 independent ATC’s
throughout the world. These accredited training
centers offer in-depth education and training in
computer-aided design skills on Autodesk products,
as well as on related, independently developed soft-
ware.Autodesk offers training sessions to its sales and
training channels to maintain a professional level of
technical expertise. Learning Assistance programs,
which provide lessons related to design projects
through an interactive multimedia tool, are provided
with select products.
Developer Programs
One of Autodesk’s key strategies is to maintain an
open-architecture design of its software products to
facilitate third-party development of complementary
products and industry-specific software solutions.
This approach enables customers and third parties to
customize Autodesk’s products for a wide variety of
highly specific uses. Autodesk offers several programs
that provide marketing, sales, technical support and
programming tools to developers who develop add-
on applications for Autodesk products.
To support the growth of third-party developers,
whose applications extend and enhance the func-
tionality of Autodesk’s products worldwide, Autodesk
operates the Autodesk Developer Network program,
or ADN. The ADN is a business network comprised of
qualified independent application developers and
customers. This program provides sales, marketing
and programming support, technical training and
consulting.Autodesk believes that the availability and
use of third party add-on products enhance sales
opportunities for Autodesk’s core products.
Under the Autodesk Developer Channel, Autodesk
offers two programs to third-party developers for the
license of Autodesk software and technology. The
Unique Application Reseller program, or UAR, permits
selected software developer partners to sell and sup-
port Autodesk software when bundled with spe-
cifically defined vertical applications. The Original
Equipment Manufacturer program, or OEM, provides
the technology for qualified developers to create and
deliver suites of scaleable products that focus on solv-
ing customer needs in specialized markets.