Why Autodesk spent $60 million on give-away software

Here's the money quote from Susan Smith's article in this morning's AECWeekly e-newsletter on why Autodesk is spending millions acquiring software that it will be selling for free:

Socialcam introduces the Autodesk name to millions of users in a casual way...  This means Autodesk can increase their audience from a finite design community to the entire world [through social  media].

It's not an acquisition; it's a marketing move, no different than spending a half-million for a full-page ad in Wall Street Journal. Autodesk paid $60 million forSocialcam's software that records videos with an Instragram look on Android and iOS devices -- about the same amount it would pay for running that ad for just four months. So, cheap, when looked from the marketing perspective.

Autodesk is no longer content with being finite. Interesting thing is, Dassault Systemes is also starting to express its discontent at being finite. It's gonna be a battle of the CAD titans for the mindshare of consumers.

Source:
www10.aeccafe.com/nbc/articles/view_weekly.php?articleid=1113286 

Image source: Socialcam.com Web page

 

Comments

[Tony Tanzillo]

I wonder why this happened:

http://news.investors.com/technology/090512-624623-social-video-app-users-take-nose-dive-on-facebook.htm

[Ralph Grabowski]

Ouch!

To summarize, Autodesk-owned SocialCAM's user count careened from 70 million in early August to 17 million a month later.

[Tony Tanzillo]

Could it be that Autodesk was bushwhacked?

[Ralph Grabowski]

Not necessarily. Autodesk might have known the falling numbers, and decided the technology was useful enough -- as highlighted by their press release announcing the acquisition.

That they got only 17 million users is secondary, although it is part of the Autodesk Dream for its name to be as well known as kleenex and scotch tape.

[Tony Tanzillo]

"That they got only 17 million users is secondary, although it is part of the Autodesk Dream for its name to be as well known as kleenex and scotch tape."

Hmmmm... Bernie Madoff is pretty-well-known.