Autodesk 2006 Annual Report Download - page 53

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benefit from unified, object-oriented platforms, customizable real-time interfaces, multiple-processor support
and 3D graphics acceleration capabilities, as well as support for a wide range of third party plug-ins. We intend
to continue development of both Autodesk 3ds Max and Autodesk Maya and to improve the workflow integration
of the two products as these products address different customer needs in the design workflow.
Discreet Flame, Discreet Flint and Discreet Inferno
Discreet Flame, Discreet Flint and Discreet Inferno systems are our scalable line of interactive real-time
visual effects and graphics design solutions. They offer scalable performance to service a wide range of client
workflows from interactive broadcast design to real-time high resolution film work. They offer the ability to
interactively create, composite and edit highly challenging sequences that merge live action with computer-
generated imagery using 3D graphics and mixed resolutions. Post-production facilities and broadcasters
integrate these turnkey systems within their production pipelines as either dedicated suites or as networked
production environments.
Discreet Smoke and Discreet Fire
Discreet Smoke and Discreet Fire systems are our scalable line of interactive real-time non-linear editing
and finishing systems that enable editors to edit, conform and finish television commercials, broadcast
programming, film trailers and feature films as well as other high value media content.
Discreet Lustre
Discreet Lustre is a highly scaleable and modular solution for high-end Digital Intermediate film and
commercial color grading. It can be configured to scale to meet a wide range of different production requirements
and productivity needs.
Autodesk VIZ
Autodesk VIZ software is a professional 3D modeling, animation and rendering application. It is designed
to provide product designers, architects and design visualization artists with advanced tools for testing and
communicating their projects and ideas. Autodesk VIZ provides compatibility with other Autodesk design
products including AutoCAD and the Autodesk DWG format enabling customers to leverage seamless
interoperability between the design and visualization phases of their projects.
Autodesk Subscription Program and Autodesk Upgrade Program
In addition to sales of new software licenses, we offer our customers two ways to migrate to the most recent
version of our products: the AutodeskSubscription Program and the AutodeskUpgrade Program. These programs
are available for a majority of our Design Solution products as well as Media and Entertainment’s 3ds Max and
Autodesk Maya. Under the Autodesk Subscription Program, customers who own the most recent version of the
underlying product participate in a simplified upgrade process, feature-enhancing extensions, downloadable
e-Learning courses and optional on-line support. Users benefit from incremental and new releases of the
underlying product and extensions over one year and multi-year contract periods. Subscription program revenues
are reported separately on our Consolidated Statements of Income as Maintenance revenue.
Under the current Autodesk Upgrade Program, a customer who is on a currently supported version of a
product, which is generally the prior three versions, can upgrade to the latest release of the product. Typically,
the cost to upgrade is based on a multiple of the number of versions the customer is upgrading.
PRODUCT DEVELOPMENT AND INTRODUCTION
We continue to enhance our product offerings and develop new products to meet changing customer
demands. Research and development expenditures were $301.6 million or 20% of fiscal 2006 net revenues,
$239.4 million or 19% of fiscal 2005 net revenues and $209.4 million or 22% of fiscal 2004 net revenues. Our
software is primarily developed internally; however we do contract services from software development firms,
2006 Annual Report
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