Autodesk shift draws VAR fire

Embattled software vendor Autodesk has attracted more criticism from its channel partners, who are unhappy with the company's latest plans to realign its business and focus on specific markets.

Embattled software vendor Autodesk has attracted more criticism from its channel partners, who are unhappy with the company's latest plans to realign its business and focus on specific markets.

Following several disputes with channel partners, after the launch of an online store (CRN, 8 December 1999) and cuts in product discounts, Autodesk has changed its business structure to focus on the manufacturing, construction, government and utilities sectors.

In a letter to VARs, Autodesk explained why it had made the changes and the possible implications. The letter warned partners that Autodesk's own sales force will be increased to allow the vendor to "develop a closer relationship with customers".

The letter, which was signed by Najeeb Khan, territory sales manager at Autodesk, continued: "In the past five years, we have successfully diversified our product range. The company sees an opportunity to substantially increase its turnover by focusing more on selected new industries. These leading customers want to work more closely with us, as well as our high-value-added partners."

Autodesk-authorised resellers were unimpressed by the manufacturer's plans and continued to attack its channel record. One VAR, who asked not to be named, claimed selling AutoCAD had "no financial benefit". He said: "AutoCAD has become a commodity and it is dying on price. Customers no longer see the benefit of up-grading, and I do not know how Autodesk is surviving. I expect margin to slump drastically year on year."

Jason Ewen, technical product director at Yorkshire CAD Systems, said: "It has become a real nightmare dealing with Autodesk.

"Smaller partners will fall by the wayside as resellers undercut each other and Autodesk stands by. Realigning will not make the least bit of difference. The AutoCAD product is dead."

Tim Taylor, managing director of Autodesk, described the channel as very important to the vendor, but he insisted that VARs had to evolve their businesses.

Taylor said: "All Autodesk dealers are important to it."

"However, some of the partners of this company have not moved on beyond the AutoCAD product, so we are encouraging them to move into specific markets.

"Autodesk has to evolve and so do its partners."