Autodesk 2008 Annual Report Download - page 99

We cannot accurately predict customer subscription attach and renewal rates and the impact these attach and
renewal rates will have on our future revenue or operating results.
Our maintenance customers have no obligation to attach maintenance to their initial license or renew their
maintenance subscriptions after the expiration of their initial subscription period, which is typically one year. Our
customers’ attachment and renewal rates may decline or fluctuate as a result of a number of factors. If our
customers do not attach maintenance to their initial license or renew their subscriptions for our products, then our
maintenance revenue will decline and our business will suffer.
We rely on third party technologies and if we are unable to use or integrate these technologies, our product
and service development may be delayed.
We rely on certain software that we license from third parties, including software that is integrated with
internally developed software and used in our products to perform key functions. These third-party software
licenses may not continue to be available on commercially reasonable terms, and the software may not be
appropriately supported, maintained or enhanced by the licensors. The loss of licenses to, or inability to support,
maintain and enhance any such software could result in increased costs, or in delays or reductions in product
shipments until equivalent software could be developed, identified, licensed and integrated, which would likely
harm our business.
We are investing resources in updating and improving our internal information technology systems. Should
our investments not succeed, or if delays or other issues with a new internal technology system disrupt our
operations, our business would be harmed.
We rely on our network and data center infrastructure, internal technology systems and our websites for our
development, marketing, operational, support and sales activities. We are continually investing resources to
update and improve these systems and environments in order to meet the growing requirements of our business
and customers. For example, in November 2007, we converted from two order entry systems to a single order
entry system. The objectives of this conversion were to improve the efficiency of operations for Autodesk and
our resellers. Unsuccessful implementation of hardware or software updates and improvements could result in
disruption in our business operations, loss of revenue or damage to our reputation.
Disruptions with licensing relationships and third party developers could adversely impact our business.
We license certain key technologies from third parties. Licenses may be restricted in the term or the use of
such technology in ways that negatively affect our business. Similarly, we may not be able to obtain or renew
license agreements for key technology on favorable terms, if at all, and any failure to do so could harm our
business.
Our business strategy has historically depended in part on our relationships with third-party developers who
provide products that expand the functionality of our design software. Some developers may elect to support
other products or may experience disruption in product development and delivery cycles or financial pressure
during periods of economic downturn. In particular markets, such disruption would likely negatively impact
these third-party developers and end users, which could harm our business.
Additionally, technology created by outsourced product development, whether outsourced to third parties or
developed externally and transferred to us through business or technology acquisitions have certain additional
risks. These risks including potential difficulties with effective integration into existing products, adequate
transfer of technology know-how and ownership and protection of transferred intellectual property.
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2008 Annua
l Report