Autodesk 2009 Annual Report Download - page 88

develop add-on applications for our products. Over 3,300 developers in the Autodesk Developer Network create
interoperable products that further enhance the range of integrated solutions available to our customers.
BACKLOG
We typically ship products shortly after receipt of an order, which is common in the software industry. Our
aggregate backlog is primarily comprised of deferred revenue. Deferred revenue consists primarily of deferred
maintenance revenue from our maintenance program. To a lesser extent, deferred revenue consists of deferred
license and other revenue derived from collaborative project management services, consulting services and
deferred license sales. Backlog also includes current software license product orders which have not yet shipped.
The category of current software license product orders which we have not yet shipped consists of orders from
customers with approved credit status for currently available license software products and may include both
orders with current ship dates and orders with ship dates beyond the current fiscal period.
Aggregate backlog was $569.5 million at January 31, 2009, of which $552.1 million was deferred revenue
and $17.4 million related to current software license product orders which had not yet shipped at the end of the
fiscal year. Aggregate backlog was $521.5 million at January 31, 2008, of which $506.1 million was deferred
revenue and $15.4 million related to current software license product orders which had not yet shipped at the end
of the fiscal year. Deferred revenue increased over the prior year primarily due to an increase in deferred
maintenance revenue. We do not believe that aggregate backlog as of any particular date is necessarily indicative
of future results.
COMPETITION
The markets for our products are highly competitive and subject to rapid change. We strive to increase our
competitive separation by investing in research and development, allowing us to bring new products to market
and create exciting new versions of existing products that offer compelling efficiencies for our customers. We
also compete through investments in marketing and sales.
Our PSEB, AEC and MSD segments compete with vendors that specialize primarily in one of the three
industry segments in which we compete. Our competitors range from large, global, publicly traded companies to
small, geographically focused firms. Our primary global competitors in these segments include Adobe Systems
Incorporated, Bentley Systems, Incorporated, Dassault Systèmes S.A. and its subsidiary SolidWorks Corporation,
Environmental Systems Research Institute, Inc. (ESRI), Google Inc., Intergraph Corporation, Nemetschek AG,
Parametric Technology Corporation, and Siemens AG PLM software division.
Our M&E segment competes with a wide range of different companies from large global publicly-traded
companies to small private entities. Large organizations that produce products that compete in some or all of our
markets include Adobe Systems Incorporated, Apple Inc., Avid Technology, Inc., SONY Corporation and
Thomson. The media and entertainment market is highly fragmented with complex interdependencies between
many of the larger corporations. As a result, some of our competitors also own subsidiaries that are our
customers or our partners in developing or bringing to market some of our solutions.
The software industry has limited barriers to entry, and the availability of computing power with continually
expanding performance at progressively lower prices contributes to the ease of market entry. The design software
market is characterized by vigorous competition in each of the vertical markets in which we compete, both from
existing competitors and by entry of competitors with innovative technologies. Competition is increasingly
enhanced by consolidation of companies with complementary products and technologies. In addition, some of
our competitors in certain markets have greater financial, technical, sales and marketing and other resources than
we do. See Item 1A, “Risk Factors,” for further discussion of risks regarding competition.
10