Customers Benefit from PTC's Faster Innovation Cycles, Shared
Commitment to Success, and Flexibility to Compete in Today's Rapidly
NEEDHAM, Mass.--(BUSINESS WIRE)--
(NASDAQ: PTC) today announced that, based on customer adoption of its
subscription licensing model, effective January 1, 2018, new software
licenses for its core solutions and ThingWorx platform will be available
only by subscription in the Americas and Western Europe. Customers in
these regions may continue to use their existing perpetual licenses and
renew support on active licenses. For customers outside of the Americas
and Western Europe, PTC plans to continue offering both perpetual and
subscription licenses after January 1, 2018, while continuing to analyze
subscription adoption trends in those regions.
"Customer adoption of our subscription offerings in the Americas and
Western Europe has been so positive that we are accelerating our
evolution to a subscription-only business in those regions," said Jim
Heppelmann, president and CEO, PTC. "In our most recent quarter, over
75% of new software bookings were sold as subscription in the Americas
and Western Europe, again validating the value customers ascribe to
consuming enterprise software as a subscription."
Customers purchasing subscriptions benefit from PTC's faster innovation
cycles, a shared commitment to success, cloud deployment options, and
increased flexibility with lower upfront costs. In addition, PTC will
offer additional incentive programs to enable customers to convert
existing perpetual licenses to subscription, affording them access to
all the benefits of the subscription model across their entire PTC
"KTM Group recently expanded its usage of PTC offerings across the
enterprise, procuring additional licenses under subscription," said
Philipp Habsburg, vice president, research & development, KTM Group.
"The low up-front cost, ability to pay-as-you-go, and flexibility to
adjust our software configuration were compelling business
justifications for us to embrace subscription."
"PTC is modernizing itself by embracing the subscription business
model," said Amy Konary, program vice president, IDC. "This approach
provides a foundation for the delivery of continuous innovation to
customers that can help fuel their constantly changing environments."
For more information, visit http://www.ptc.com/subscription.
Note: PTC's Kepware product suite will continue to be available in
both perpetual and subscription business models.
About PTC (NASDAQ: PTC)
PTC has the most robust Internet of
Things technology in the world. In 1986 we revolutionized digital 3D
design, and in 1998 were first to market with Internet-based PLM. Now
our leading IoT and AR platform and field-proven solutions bring
together the physical and digital worlds to reinvent the way you create,
operate, and service products. With PTC, global manufacturers and an
ecosystem of partners and developers can capitalize on the promise of
the IoT today and drive the future of innovation.
About our Bookings Measure and Forward-Looking Statements
software bookings measure is the annualized contract value of new
subscription bookings multiplied by a conversion factor of 2 plus
perpetual license bookings for the period.
Past adoption of subscription licensing by PTC customers is not
necessarily indicative of future rates of customer subscription adoption
and the effect of the transition to a subscription only model in certain
geographic regions may not have the effect on revenue that we expect.
PTC and the PTC logo are trademarks or registered trademarks of PTC Inc.
or its subsidiaries in the United States and other countries.
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Jack McAvoy, 781-370-6143
News Provided by Acquire Media