Autodesk 2013 Annual Report Download - page 104

customers, educational institutions and students has been developed over our thirty year history. We believe it is an enduring
competitive advantage that is difficult for others to replicate.
We continually strive to increase the business value of our design tools to our customers in a number of ways. First, we
seek to address an increasing portion of our customers' workflow with products that extend the value of our customers' digital
design information into visualization, analysis and simulation. Second, we seek to improve our product interoperability and
usability, thus improving our customers' productivity and effectiveness. Third, we continue to develop new ways to deliver
capability and value to our customers, such as product suites, cloud and social-based services, and delivery of our solutions on
mobile devices and new hardware platforms. Fourth, we extend our customers' workflow with products for adjacent users and
for the “customers of our customers,” thus increasing the value of the design information our customers produce. Finally, we
continue to develop new lines of consumer products and services that are delivered and experienced through the Web, tablets,
and other mobile devices providing our advanced visualization technologies to consumers—a whole new category of Autodesk
customer.
Autodesk was founded during the platform transition from mainframes and engineering workstations to personal
computers. We developed and sustained a compelling value proposition based upon desktop software for the personal
computer. Just as the transition from mainframes to personal computers transformed the industry thirty years ago, we believe
our industry is undergoing a similar transition from the personal computer to cloud, social, and mobile computing. To address
this shift, our major business initiatives include our desire to accelerate the business' move to the cloud, transform our
customers' experience, increase industry focus to meet customer demands, and develop more effective marketing.
During the first quarter of fiscal year 2013, we undertook a number of important organizational changes to drive the
success of our business. The reorganization included changes to the structure and alignment of our product development and
marketing teams and re-organization of our sales teams. While these changes were intended to better serve our customers and
drive future growth, we have encountered challenges in the execution of these efforts which have impacted our financial results
in the short term. In order to achieve these organizational changes and to further our strategy, including our continuing shift to
cloud and mobile computing, in the third quarter of fiscal year 2013, we commenced a company-wide restructuring plan. The
plan included a reduction of approximately 500 positions and the consolidation of eight leased facilities with a total cost of up
to $52.0 million ("Fiscal 2013 Plan"), of which $43.9 million was incurred during fiscal 2013. The termination benefits and
facility related liabilities have been substantially paid as of fiscal year ended January 31, 2013. Autodesk expects to pay the
remainder of the termination benefits and facility related liabilities through the fourth quarter of fiscal 2019. For further
discussion see Note 15, “ Restructuring Reserves,” in the Notes to the Consolidated Financial Statements.
Our growth strategy is predicated upon leading the transition in the industries we serve into the cloud in three ways:
• Grow. We believe sufficient opportunity remains in our PC-based software business, and we intend to continue to
grow this business. In particular, we are offering product suites with improved interoperability and usability to
enhance our customers' productivity. We are continuing to drive maintenance and new licensing models to better
match the business needs of our customers. We will continue to emphasize developing direct relationships with large,
global customers and pursuing opportunities in emerging economies.
• Transform. At the same time we grow our desktop software business, we are migrating many of our products to the
cloud. This entails development of new cloud computing infrastructure and redesigning our applications to leverage
the cloud. We are also developing new capabilities that are enabled by the cloud such as collaborative Product
Lifecycle Management ("PLM") and on line simulation. Our goal is to lead our industry in transitioning to the cloud.
• Expand. We believe that the combination of cloud, social and mobile computing affords us the opportunity to expand
our business into new markets. For example, we have added new customers through our consumer products. We
intend to continue to develop our business to both add new customers and find new capabilities to incorporate in our
core business.
We believe that expanding our customers' portfolios to include our suites presents a meaningful growth opportunity and is
an important part of our overall strategy. As our customers in all industries adopt our design suites, we believe they will
experience an increase in their productivity and the value of their design data. For fiscal 2013, revenue from suites increased
16%, as compared to the prior fiscal year. As a percentage of revenue, suites increased to 30% in fiscal 2013 as compared to
27% in fiscal 2012.
Expanding our geographic coverage is another key element of our growth strategy. Much of the growth in the world’s
construction and manufacturing is happening in emerging economies. Further, emerging economies face many of the
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