AVEVA to Transition to a Subscription Model for Industrial Software

AVEVA has announced that it will be switching to a subscription-based software model instead of an individual software licensing model. The new model, AVEVA Flex, will keep industrial customers up-to-date with the latest software and help drive innovation. Many other major software companies, such as Microsoft and Adobe, have already made this switch. 

 

AVEVA will begin switching clients to a subscription-based software model. Image used courtesy of AVEVA

 

Existing Licenses

The process of switching to a subscription model will begin immediately, with a target of 80% of all clients switched by 2025. In this transition, existing licenses can be traded for subscriptions on a variety of on-site and cloud-based software. All new software will be sold on a subscription basis only. 

 

AVEVA Portfolio

AVEVA, acquired by Schneider Electric back in January, has been in the design and automation implementation business since 1967. Currently, AVEVA develops automation control systems, data acquisition, analysis and storage solutions, simulation and training software, human-machine interfaces, and a variety of other technologies required by the modern manufacturing facility. They provide solutions for local, intranet, or cloud-based data management. 

In the automation control realm, AVEVA has served a number of industries, such as petrochemical, infrastructure, power generation and distribution, mining, manufacturing, and many others. 

The AVEVA Flex subscription program. Image used courtesy of AVEVA

Advantages of a Subscription Model

Customers that use a subscription-based model may see a 65% reduction in first-year costs, according to the AVEVA press release, with a return on investment (ROI) of around six months. Instead of having to purchase a new software package periodically or limp along obsolete software, customers are guaranteed the latest version.

At first glance, it is tempting to keep the old software running. However, with the rise in cyberattacks on industrial facilities, this is a major liability. Unsupported and obsolete software is the most vulnerable to attacks, and thus software should be updated frequently. Instead of buying the latest version frequently, the subscription-based model supplies the customer with the latest version, complete with all security patches required with the ever-advancing sophistication of cyberattacks.

 

When it comes to software, “good enough” for 2018 may not be “good enough” for 2023. Image used courtesy of Adobe Stock

 

Furthermore, software products are constantly improving, making them easier to integrate, adding new sensor and controller support, and making them more intuitive to program. With this in mind, using legacy software puts the manufacturing plant at a disadvantage compared to its competitors, who adopted the latest version. “Good enough” for 2018 may not be “good enough” for 2023.

A subscription-based model also ensures that technical support will be available for customers. How often has an engineer run into a software difficulty and called technical support, only to find that the software is no longer supported? The subscription includes technical support for the latest packages, meaning upgrades are pain-free and help is always available.

 

Subscription-based Software

Many people have mixed feelings about subscription-based software packages. Owning the software and having a seemingly-fixed cost of purchase is appealing. However, in a world where new updates improve security, fix bugs, and add features, a subscription-based business model can save money in the long run.