LabVIEW subscription model for 2022

[benjamin-hinrichs]

It's a pretty standard disclaimer: just because we earned X last quarter doesn't guarantee we'll earn X in every future quarter.

[rolfk]

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@benjamin-hinrichs wrote:

It's a pretty standard disclaimer: just because we earned X last quarter doesn't guarantee we'll earn X in every future quarter.

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It is and belongs in the same category as that, unless you want to risk getting sued, you should mention in your microwave manual that it is not suited to dry the soaked cat in it as that poor animal will certainly not survive it! 😁

[crossrulz]

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@rolfk wrote:

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@benjamin-hinrichs wrote:

It's a pretty standard disclaimer: just because we earned X last quarter doesn't guarantee we'll earn X in every future quarter.

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It is and belongs in the same category as that, unless you want to risk getting sued, you should mention in your microwave manual that it is not suited to dry the soaked cat in it as that poor animal will certainly not survive it! 😁

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Or hamsters.

Spoiler

I did play Maniac Mansion on the Commadore 64, but never tried putting the hamster in the microwave.  The NES version, which I eventually beat the game on, removed being able to put the hamster in the microwave.

[beuvink]

As of this chart ~65% of all licenses have shifted to SaaS. By the end of the year this will be ~80%. So we are only ~20%, not a thread to NI future.

This change increase their revenue by 66% so all is fine.

[aputman]

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@beuvink wrote:

As of this chart ~65% of all licenses have shifted to SaaS. By the end of the year this will be ~80%. So we are only ~20%, not a thread to NI future.

This change increase their revenue by 66% so all is fine.

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This all looks great to an investor but investors don't give a "microwaved-hamster's rear end" about us holdouts....as you say, not a threat.  

I guess if you need some help "transitioning", go register for this webinar that they so kindly just sent me.

[Jay14159265]

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I guess if you need some help "transitioning", go register for this webinar that they so kindly just sent me.

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Do you have a link to that one? I have been going to a few developer level ones like this one next week: 

https://event.on24.com/wcc/r/3920991/89B2E9AFF9B82D2166B889249F1196EC

edit: Maybe this is the same one. 

[MichaelBalzer]

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@beuvink wrote:

As of this chart ~65% of all licenses have shifted to SaaS. By the end of the year this will be ~80%. So we are only ~20%, not a thread to NI future.

This change increase their revenue by 66% so all is fine.

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Unless I'm understanding it wrong, those pre-2022 subscription rates (<10%) are completely at odds with what was said in this thread by Eric (emphasis mine):

• At the time NI made this change, a large portion of our users were already using subscription-based software. Some part of this decision also came down to simplifying our portfolio - choosing a single model to offer software through. Between many users already using it, and the other benefits I listed, the subscription model is the right choice.

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In this case I can only assume "subscription-based software" was referring to all of a customer's software, both NI and non-NI. A lot of people probably have Office365 subscriptions or similar, but that's not really comparable to LabVIEW.

I'd be more interested to see the figures as we move into 2023 and beyond. I suspect many customers have paid for the subscritpion for the next 1-3 years to lock in SSP pricing, and in the mean time are actively evaluating options for shifting away from LabVIEW / NI.

That license conversion as a percentage is misleading anyway. Of course it'll continue to increase - those who stop using LabVIEW won't be considered a customer anymore, and so the percentage will naturally increase. Absolute subscription numbers would be more interesting.

[beuvink]

OK, I said I would keep my positive head. If I put on my 'technical negative head'. I can look at these slides in a completly different way..

One target is to reduce their non-growth application buisness so it becomes the same as growth business. So what was 88% needs to be reduced to 12%, so they plan to lose 86% of non-growth business

Another target is to achieve that the tier 1 customers become 50% of their accounts. So the non-tier ones have to be reduced from 71% to 29%, so target is achieved when they lose 60% of non-tier one customers.

I hope it is a good thing I am an engineer.. not an investor.. and my interpretration is completely wrong 😉

(edit: Slide 43 shows that tier 1 are their ~100 high-potential accounts.. don't understand how to match that with the slide above... They only have 300 accounts? Slide 23 shows a slide with 'absolute' numbers for accounts above, their plan is to keep rest 'other' accounts the same and increase the tier 1... hmmm... but then there are more than 100.. hmm.. better not to think about it....)

[Pnt]

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@beuvink wrote:

As of this chart ~65% of all licenses have shifted to SaaS. By the end of the year this will be ~80%.

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This is somehow expected. When you are a big company and you have many projects running,  you will go to SaaS. You have no choice. 

But who new company will trust NI, in the future?

It was NI that said, please move to NXG... then they canceled NXG.

It was NI that said, we want to work with you, to provide you good software, and make LabVIEW even better... then they left many engineers hunged,  by moving to SaaS.

In this business reliability is very important. 

From the other hand, marketing people rule the world,  so maybe NI will improve their financial numbers in the future. 

Someone had said... "the most uncommon think in the world,  is common sense "

[AeroSoul]

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@Pnt wrote:

Someone had said... "the most uncommon think in the world,  is common sense "

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Common sense is for newbs, i have mythic rare sense!

(MTG reference)