Autodesk 2015 Annual Report Download - page 100

2015 Form 10-K 8
• Autodesk 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, extraordinary visual effects, and full length animated feature films.
Creative Finishing
• Autodesk Flame, Autodesk Smoke, and Autodesk Lustre
Autodesk Flame software is an interactive real-time design, finishing, grading, and visual effects solution for supervised
post-production. Autodesk Smoke software is a non-linear and non-compressed online editing, effects, and finishing software
application and is used in commercials, music videos, corporate video, film as well as broadcast design projects. Autodesk
Lustre software is a high-performance color grading solution used by artists for creative look development and final color and
lighting effects for both film and television.
PRODUCT DEVELOPMENT AND INTRODUCTION
The technology industry is characterized by rapid technological change in computer hardware, operating systems, and
software. In addition, our customers’ requirements and preferences rapidly evolve, as do their expectations of the performance
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.
The software industry is undergoing a transition from the personal computer to cloud, social, and mobile computing. In
fiscal 2015, we continued to successfully implement a strategic transition of our business model announced in fiscal 2014. We
accelerated our move to the cloud and expanded our flexible product license offerings. We introduced Desktop Subscription
(formerly known as rental) for a broader range of our product portfolio, expanded our new token-based licensing program to
more enterprise customers, and continued to expand our industry leading cloud based offerings. These offerings are designed to
give our customers even more value and flexibility to use our products, and also to attract new types of customers, such as
project-based users and small businesses that have more variable needs. Further, to support our transition, we have discontinued
licensing upgrades effective March 6, 2015 and, on February 4, 2015, we also announced that new commercial seats of most
standalone software products will be available only by desktop subscription beginning February 1, 2016. Collectively, these
measures helped increase many of our performance metrics including billings, deferred revenue, and subscriptions, which will
result in more predictable and ratable revenue over time.
We dedicate considerable technical and financial resources to research and development to further enhance our existing
products and to create new products and technologies. For example, in fiscal 2015, we announced that we would create Spark,
a 3D printing software platform for developers to facilitate the advancement of 3D printing technology and begin
manufacturing and selling Ember, an Autodesk-branded 3D printer. The Ember 3D printer became available for consumer
purchase in February 2015.
Research and development expenditures were $725.2 million or 29% of fiscal 2015 net revenue, $611.1 million or 27% of
fiscal 2014 net revenue and $600.0 million or 26% of fiscal 2013 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 research and product development is performed in the United States, China, Singapore, and Canada.
However, we employ experienced software developers in many of our other locations. Translation and localization of our
products are 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
2015 Annual Report