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Why This Software Firm Is Moving Toward a Subscription Business Model

Subscription services have taken an increasingly larger position within the footwear ecosystem. Just look to Under Armour or to startup EasyKicks for examples of firms that have experimented with the business model.

But it’s not just brands and retailers that have caught on.

Software firm PTC has jumped on the bandwagon, too. A spokesman for PTC revealed that as of 2019, “new software licenses for PTC’s core solutions and ThingWorx Industrial Innovation Platform” will be accessible only via subscription worldwide.

“Subscription licensing has quickly become the new industry standard, and the accelerated adoption we have already seen throughout the world shows that our customers have embraced this change. As a result, we will continue to expand subscription licensing to all remaining countries in early 2019,” said Jim Heppelmann, president and CEO of PTC. “The ability to license enterprise software by subscription aligns with industry best practices and delivers the value and flexibility customers demand to enable them to achieve success in today’s highly competitive landscape.”

PTC’s move comes as a part of its “global transition to a subscription business model.”

According to the spokesman, the shift will allow customers to “benefit from faster PTC software innovation cycles … and increased flexibility in product license mix.”

The spokesman noted that customers can keep using perpetual licenses already in place and renew relevant support on active ones. The spokesman added that PTC’s new subscription policy comes with some exceptions. (Its Kepware product suite, for example, will still be available through both subscription and perpetual licensing.)

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