Autodesk 2010 Annual Report Download - page 101

ŠAutodesk Maya
Autodesk Maya software provides 3D modeling, animation, effects, rendering and compositing solutions
that enable film and video artists, game developers and design visualization professionals to digitally create
engaging, lifelike images, realistic animations and simulations, and extraordinary visual effects.
Advanced Systems
ŠAutodesk Flame, Autodesk Inferno, Autodesk Flint and Autodesk Smoke
Autodesk Flame, Autodesk Inferno and Autodesk Flint systems are our scalable line of interactive real-time
visual effects design and finishing solutions. These products service a wide range of client workflows from
interactive broadcast design to real-time high-resolution film work. The Autodesk Smoke system is an interactive,
real-time, non-linear and non-compressed online editing and finishing system that enables editors to edit, conform
and finish television commercials, broadcast programming, film trailers and feature films, as well as other high-
value media content in mixed resolutions. In fiscal 2010, we introduced Autodesk Flare, a software-only version of
the Flame compositing environment, available as a creative companion to Flame and Inferno seats.
ŠAutodesk Lustre
Autodesk Lustre system is an award winning, high-performance color-grading solution used by artists for
creative look development, final color and lighting effects for both television and film projects.
PRODUCT DEVELOPMENT AND INTRODUCTION
The technology industry is characterized by rapid technological change in computer hardware, operating
systems and software. In addition, our customer’s requirements and preferences rapidly evolve, as do their
expectations of our software. To keep pace with these changes, we maintain a vigorous program of new product
development to address demands in the marketplace for our products. We dedicate considerable technical and
financial resources to research and development to further enhance our existing products and to create new
products and technologies. Research and development expenditures were $457.5 million or 27% of fiscal 2010
net revenue, $576.1 million or 25% of fiscal 2009 net revenue and $490.5 million or 23% of fiscal 2008 net
revenue. Our software is primarily developed internally; however, we also use independent firms and contractors
to perform some of our product development activities. Additionally, we acquire products or technology
developed by others by purchasing or licensing products and technology from third parties. We continually
review these investments in an effort to ensure that we are generating sufficient revenue or gaining a competitive
advantage to justify their costs.
The majority of our basic research and product development is performed in the United States, China,
Singapore and Canada. However, we employ experienced software developers in all of our locations. Translation
and localization of our products is performed in a number of local markets, principally Singapore and
Switzerland. We generally localize and translate our products into German, French, Italian, Spanish, Russian,
Japanese, Korean and simplified and traditional Chinese.
We plan to continue to manage significant product development operations internationally over the next
several years. We believe that our ability to conduct research and development at various locations throughout
the world allows us to optimize product development, lower costs, and integrate local market knowledge into our
development activities. We continually assess the significant costs and challenges, including intellectual property
protection, against the benefits of our international development activities.
In addition, our business strategy has historically depended in part on our relationships with a network of
over 3,400 third-party developers who develop and sell their own products that further enhance the range of
integrated solutions available to our customers.
For further discussion regarding risks from our product development and introduction efforts, see Item 1A,
“Risk Factors.”
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