Any thoughts on PTCs strategy to acquire the next generation of users? Discounted subscriptions for students etc. You discussed the stickiness of CAD software so seems to me that the largest risk of user attrition comes when the baton is passed to a generation where PTCs software isn’t their native choice.
It's an important question and most applicable to the Onshape part of the thesis. CAD has particularly high switching costs, so you have to change the game and turn up with something radically different if you're going to take customers - and Onshape is already doing this with SW albeit from a small base. But, as you allude to, switching costs are low to non-existent in some instances - students, educators and startups. Onshape is aggressively targeting all of these with free access to build habits, loyalty and ultimately switching costs - Onshape is the most natural choice for digital native users too which makes it all easier. It'll all take time to play out though - CAD systems are so ingrained these days (vs 1990s & Pro/E), they can't just be swept aside and something else universally/virally adopted in a short space of time such as we've seen with some other applications. More to come in Part II!
Any thoughts on PTCs strategy to acquire the next generation of users? Discounted subscriptions for students etc. You discussed the stickiness of CAD software so seems to me that the largest risk of user attrition comes when the baton is passed to a generation where PTCs software isn’t their native choice.
It's an important question and most applicable to the Onshape part of the thesis. CAD has particularly high switching costs, so you have to change the game and turn up with something radically different if you're going to take customers - and Onshape is already doing this with SW albeit from a small base. But, as you allude to, switching costs are low to non-existent in some instances - students, educators and startups. Onshape is aggressively targeting all of these with free access to build habits, loyalty and ultimately switching costs - Onshape is the most natural choice for digital native users too which makes it all easier. It'll all take time to play out though - CAD systems are so ingrained these days (vs 1990s & Pro/E), they can't just be swept aside and something else universally/virally adopted in a short space of time such as we've seen with some other applications. More to come in Part II!