Is this the right solution for all customers?

  • This approach has strong benefits for both small deployments requiring broad set of applications or products and for large deployments with many applications / products.
    • The majority of our customers probably fall into the middle where traditional licensing is felt to be best solution.   
  • If a customer has need for a single application like MCD or Mold then it is most likely the most cost effective approach is to sell the specific products.  
  • Looking at each as examples:
    • NX11113 Mechatronics Concept Designer – $35,200 plus $7745 ME&S
  • Using tokens
    • NX11110 Mach 1 Product Design – $16,129 plus $3535 ME&S
    • NX35100 NX Value Based Licensing 100 pack – $16,308 p.a.
  • While year 1 is slightly lower cost, ($43K to $36K) the customer breakeven is approximately 17 months into the contract.
    • NX13200 MoldWizard – $27260 plus $5180 ME&S
  • Using tokens
    • NX11110 Mach 1 Product Design – $16,129 plus $3535 ME&S
    • NX35100 NX Value Based Licensing 100 pack – $16,308 p.a.
    • NX35050 NX Value Based Licensing 50 pack – $8,148 p.a
  • With a base of Mach 1 we do still not have a 100% functionality match, but you can see that the initial cost of the token based approach is more expensive ($32K to $44K)
  • This illustrates the fact that tokens really appeal when there is a need for a wider set of addons.
  • That said, any company looking for new features and capabilities can see the benefit of spending a little more on tokens in order to gain the flexibility of being able to use a much broader product portfolio without further investment.   
    • This would be the case for a customer who has a dedicated pool of licenses but is looking at adding one or two more add-on modules.  
    • Purchasing a token pool on top of the existing licenses is a very cost-effective way of controlling future spend and adding flexibility to the existing capability.  For small deployments start with at least 150 tokens per user, very large deployments with a large number of existing add-ons 50 to 100 tokens per user.