It’s November already and renewal quotes for next year’s software are starting to arrive. CAD managers must estimate costs while renewal pricing, staffing, and upcoming project requirements may still be uncertain. A useful budget needs to account for existing commitments, expected license use, and any charges beyond the renewal quote.
Image source Arfa_Media/stock.adobe.com, AI-generated.
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Autodesk removed most remaining subscription renewal discounts in January 2026, changing the starting point for many renewal budgets. Firms with perpetual licenses face a different decision: whether to continue maintenance, what access or services would end if coverage lapses, and what reinstatement would cost. The vendor sections summarize licensing and renewal policies as of October 2026.
For more on explaining your team’s needs to management, you can also read Robert Green’s Cadalyst column, “Pushing For What Your CAD Team Needs.”
Review license terms for payment commitments, renewal and cancellation deadlines, and charges beyond the quoted price before setting your 2027 CAD software budget. Image source candrastock/stock.adobe.com, AI-generated.
A license term sets the period covered by your purchase. Whether the price stays fixed throughout that period depends on your agreement. A multi-year subscription may commit your firm to payments for the full term, even when billed annually. Check the total commitment and when seat reductions can take effect.
A price lock on existing seats may not apply to seats added during the term or to pricing at the next renewal. Check the rate for seats added during the term and whether they share the existing subscription’s end date. Usage-based charges and separately licensed services may add to the contracted cost.
A perpetual license generally allows continued use of the licensed version without renewing maintenance, subject to the license agreement. However, updates, technical support, cloud services, and some licensing rights may depend on active maintenance. Before letting coverage lapse, confirm what your firm would retain, what would end, and what reinstatement would cost.
Prepare several budget options based on current usage and expected project needs. Start with the cost of renewing your existing licenses, then compare it with options that adjust seat counts, license types, or subscription terms. Use the same assumptions about upcoming work for each comparison.
| Scenario | What It Assumes | What to Check First |
| Renew as-is | Retain every current seat and product. | Obtain a written renewal quote. |
| Adjust for expected use | Remove unused seats that are not needed for upcoming work; consider other license options for occasional users. | Review usage reports, project requirements, and staffing plans. |
| Adjust for expected use with a multi-year term | Commit to the revised seat count for a longer term, where available. | Confirm the total commitment, payment schedule, price protection, and restrictions on reducing seats. |
For each option, estimate variable costs that may be absent from your renewal quote. Review overage invoices, token or credit consumption, and prepaid balances. Base any allowance on expected use and the vendor’s charging model.
Set your planning deadline around the earliest date by which you must act. An automatic-renewal cancellation deadline may fall well before the subscription expires. Allow time for internal approval before that deadline; the vendor sections below identify specific requirements.
When presenting a CAD software budget, separate existing commitments from new requests and explain how each option supports upcoming work. Image source Studio Romantic/stock.adobe.com, AI-generated.
Management needs to know how much you are requesting, how long the firm would be committed, and what happens if the request is declined. Organize your budget proposal around those questions.
Tie each line item to work. Identify the projects, clients, or contracts that require each product. Explain which deliverables or tasks depend on the requested licenses.
Separate existing commitments from new requests. If your firm is partway through a multi-year contract, identify the payments already committed under that agreement. Present proposed spending on additional seats, add-ons, and upgrades separately. For example, if you need two additional seats, show their cost alongside the existing commitment so management can see the amount that needs approval.
Explain the consequences of a cut. Identify what access or services would end, when that would happen, and which work would be affected if a license or service is cut. Where applicable, include the cost of reinstating maintenance or purchasing a new subscription later. Distinguish immediate savings from costs the firm may incur in a future budget.
Present the options and recommend one. Show the cost, commitment, and practical consequences of each option. Explain which you recommend and how it meets expected project needs.
An Illustrative ExampleThis example starts with a 25-seat office renewing on January 1, 2027, at an illustrative $2,000 per seat per year. A review identifies four seats unused during the past 90 days, and project and staffing plans indicate those seats will not be needed in the coming year.
The annual budget for 21 seats, including the illustrative $2,100 variable-cost reserve, is $44,100—$5,900 less than renewing all 25 seats without a reserve. The reserve is 5% of the revised license cost; use your firm’s consumption records and expected charges to calculate an appropriate allowance for each option. In this example, a three-year term provides price certainty rather than a lower annual license cost, while committing the firm to $126,000 in license payments. The best option depends on expected usage and the available contract terms. |
Editor’s note: Cadalyst requested information from each company included in this article. Autodesk and Dassault Systèmes provided responses; the other companies’ sections are based on publicly available information reviewed in October 2026. Confirm current pricing, renewal deadlines, and licensing terms with your vendor or reseller.
Manufacturing and product-design firms may use subscription software alongside perpetual licenses with maintenance coverage. Budget planning should account for both: the cost and commitment of subscription renewals, and the services or licensing rights that depend on maintaining perpetual-license coverage. Before reducing seat counts or ending maintenance coverage, review expected use, project requirements, and the cost of restoring access later.
Autodesk sells new commercial licenses for Inventor, the Product Design & Manufacturing Collection (PDMC), and Fusion by subscription. The company confirms that its January 2026 removal of renewal discounts applied to standard commercial subscriptions for all three. Fusion subscriptions and extensions follow Autodesk’s standard subscription and renewal framework. Separate pricing provisions generally apply to Success Plans, Flex, Enterprise Business Agreements, and subscriptions purchased through trade-in offers such as Move to Subscription and Transition to Named User. Actual reseller prices may vary in some regions.
Multi-year commitments. A three-year term protects the subscription price for those three years, with annual billing and a commitment to the full term. Seats added mid-term are purchased at the then-current price and can be co-termed to the original subscription for price protection through the remaining term. Seat reductions and changes to term length generally take effect at renewal.
Shared-license costs. According to Autodesk, its January 2026 pricing changes aligned multi-user subscriptions with the cost of two single-user subscriptions for the same product in most regions, with China as a notable exclusion. If your firm still holds multi-user subscriptions that are eligible for renewal, compare the cost of retaining those seats with the named-user subscriptions needed to cover your team’s expected use. For occasional Inventor Professional users, compare the cost of a named user subscription with Autodesk Flex, which charges tokens for each day of access. Base the comparison on expected days of use.
Renewal timing and access. Eligible subscriptions can be renewed by quote from 90 days before expiration until 45 days after. Plan to complete renewal before expiration; the later deadline does not provide 45 days of uninterrupted access.
For Autodesk-managed annual and three-year subscriptions, full product access continues for the first 15 days after expiration. The subscription then enters suspension, removing product access while allowing renewal. At 45 days, it is canceled and a new subscription must be purchased. A late renewal retains the original billing cycle and renewal date. Processes may differ for partner-managed purchases.
“For CAD managers, the strongest budget is one you can tie to actual usage and the work you expect your team to take on,” said Marcus O’Brien, VP of Product Development, AutoCAD, Infrastructure & Reality Capture Solutions at Autodesk, in a statement to Cadalyst. “Look at who is using which products regularly, where occasional users may be better suited for Flex, what projects or hiring plans could change demand, and when your major renewals come up; then build in enough room to absorb those changes without having to revisit the budget midyear.”
SOLIDWORKS Design is available in Standard, Professional, and Premium tiers. The company confirms that perpetual licenses with Subscription Services and term licenses in one-year or three-month increments will remain available in 2027. A new perpetual license requires at least one year of Subscription Services.
License options and pricing. SOLIDWORKS Design offers named-user access across multiple devices. SOLIDWORKS Design with Cloud Services offers device-based term or perpetual licenses, with network floating options available through resellers. As of October 2026, the online annual term price for Standard is US$2,820 for either offering, excluding local taxes. Perpetual-license pricing is available through resellers.
What maintenance covers. A perpetual SOLIDWORKS Design license remains usable if Subscription Services lapse. However, access to new releases, technical support, certification exams, and subscription-dependent products and services ends. These include Cloud Services and SOLIDWORKS CAM Standard, plus SOLIDWORKS Visualize Standard for eligible Professional and Premium licenses. Before ending coverage, identify which of these your team uses and will continue to need.
Reinstatement costs. According to Dassault Systèmes, backdating fees are based on the period between the previous Subscription Services end date and reactivation, with no additional reinstatement fees. The company also offers promotions for perpetual customers moving to annual term licenses that waive backdating fees. Confirm eligibility and compare the conversion cost with reinstating coverage on the perpetual license.
Prepaid maintenance. Prepaid multi-year Subscription Services options lock pricing for the covered period. Compare the total payment and coverage dates with annual renewal costs and the firm’s expected use.
Asked what customers should consider when preparing their 2027 software budgets, Scott High, Partner Sales Manager at Dassault Systèmes, said, “From individual designers to growing teams, customers can choose an approach that works today and adapts as their priorities change.”
Creo licensing. PTC stopped selling new perpetual licenses for its core products in the Americas and Western Europe in 2018 and expanded the subscription-only policy globally in 2019 with some exceptions. Existing perpetual customers can continue using their licenses and renewing support on active licenses. Under PTC’s published terms, discontinued support for perpetual licenses cannot be reactivated. Customers can continue using those licenses without support or purchase new subscription licenses if they later need updates and support. Confirm the terms governing your firm’s licenses before allowing coverage to lapse. Current Creo offerings are available by subscription, including Creo+ as SaaS.
Creo Design Essentials provides the base license. Customers can purchase packages with additional capabilities or individual extensions for tasks such as generative design and simulation. Different users in the same firm can hold different packages.
Dedicated and shared access. Creo offers licenses locked to one machine or floating licenses shared through a server. A floating license allows one person to use it at a time. Compare license costs with expected simultaneous use before deciding how many seats to purchase. PTC publishes prices for Design Essentials, Creo Design Suites, and selected extensions in its online store; other packages require a quote.
Onshape subscription. Onshape, PTC’s cloud-native CAD, is sold only by subscription, priced per user and billed annually. As of October 2026, Standard costs $1,500 per user per year and Professional costs $2,500 per user per year; Enterprise is available by quote. A Free plan exists, but it is limited to non-commercial use, and documents created under it are publicly accessible for others to view and copy.
According to Onshape’s published plan comparison, Standard includes core CAD, private storage, and in-product support. Professional adds company-managed data, release management, advanced product data management (PDM), simulation, rendering, ECAD/MCAD exchange, and CAM. Compare the additional $1,000 per user with the cost of meeting those requirements through your existing tools. Enterprise adds features including an Arena product life management (PLM) connection, single sign-on, analytics, and guest access; confirm any associated licensing requirements.
Qualified users can evaluate Professional through Onshape’s Discovery Program for up to six months at no charge. Confirm eligibility and the subscription cost after the evaluation period.
Cancellation and document access. Onshape’s Professional documentation requires cancellation requests at least 30 days before renewal. Following cancellation, the subscription remains active through the paid period and then converts to Free, subject to account circumstances.
Existing private documents remain private but become view-only. Users can still view, export, and download their private documents; access to shared documents depends on permissions. New documents created under the Free plan are public.
Designcenter X Solid Edge is a software-as-a-service (SaaS) subscription licensed to named users and offered in Standard, Advanced, and Premium tiers. Additional licensing options are available through authorized Siemens Solution Partners.
Subscription costs. The U.S. prices recorded for this article in October 2026 are $2,809.80 per user per year for Standard, $3,490.20 for Advanced, and $5,002.20 for Premium. Monthly subscriptions cost $292.69, $363.56, and $521.06, respectively. Paying monthly for a full year costs approximately 25% more than the annual option.
The listed three-year prices equal three times the annual price, so they provide no additional discount at those rates. Before committing, confirm the payment schedule, price protection, and restrictions on changing the subscription during the term.
Tokens for additional capabilities. Siemens describes Value-Based Licensing as access to eligible add-ons through shared packs of 10, 25, 50, or 100 tokens. These capabilities include simulation, electrical routing, generative design, and AI-assisted drawing creation. Each add-on holds a specified number of tokens while it’s running. When the user closes the add-on, those tokens become available for someone else to use. Choose a pack large enough to cover the add-ons your team needs to run at the same time.
Renewal deadlines. Siemens’ published store terms require at least 60 days’ notice of non-renewal and specify 90 days’ notice of changed renewal fees. An executed master agreement may contain different terms. Check the agreement governing your subscription before setting the internal approval deadline.
Apply the same review to CAM, simulation, rendering, PDM/PLM, and other software your firm uses. Identify payment commitments, usage-based charges, renewal and cancellation deadlines, and what access or services would end if coverage lapses.
Give management clear budget options, including costs, contract commitments, and the work each option supports, so they can decide what to approve. Image source Firman Dasmir/stock.adobe.com, AI-generated.
A renewal quote covers only part of the software budget. Review actual usage and upcoming work, separate existing commitments from proposed spending, and include expected charges that fall outside the quoted price. Check cancellation and renewal deadlines early enough to allow for internal approval.
Take management a comparison of the available options, with costs, contract commitments, and the consequences of reducing or ending coverage. Recommend the option that meets your team’s expected needs and explain the assumptions behind it. That gives management a clear basis for deciding what to approve.
Software Budget Planning ChecklistStart by checking each vendor’s cancellation or renewal deadline. Work backward from the earliest date by which you must act, adjusting the schedule to allow for your firm’s approval process. 90 days to renewal
60 days to renewal
30 days to renewal
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FAQ — Mechanical CAD Software Budgets |
What should a mechanical CAD software budget include?Include subscription renewals, maintenance payments for perpetual licenses, additional seats, and separately licensed tools. Account for CAM, simulation, rendering, and PDM/PLM software alongside core CAD products. Estimate token or other usage-based charges, and separate existing contractual commitments from new spending requests. How should CAD managers compare named-user and floating licenses?Compare costs against who needs access and how many people work simultaneously. Named-user licenses assign access to individuals, while floating licenses support a specified number of concurrent users. Availability and restrictions vary by vendor and product. Review actual usage and upcoming work before deciding how many licenses of each type your team needs. Does a multi-year CAD subscription cost less than an annual subscription?Not necessarily. A longer term may provide price certainty without reducing the annual license cost. Compare written quotes, the total commitment, payment schedules, and restrictions on reducing seats. Annual billing does not necessarily mean the firm can cancel after each year. Can a firm keep using perpetual CAD licenses after maintenance ends?Generally, the licensed version remains usable, subject to the agreement, but updates, technical support, and subscription-dependent services may end. Reinstatement policies differ. PTC’s published terms state that discontinued support for perpetual licenses cannot be reactivated; customers can continue using those licenses without support or purchase new subscription licenses. Check the applicable terms before allowing coverage to lapse. What happens to private Onshape documents after canceling a Professional subscription?Under Onshape’s published Professional subscription documentation, the subscription generally remains active through the paid period and then converts to Free, subject to account circumstances. Existing private documents remain private but become view-only; users can still view, export, and download them. Access to shared documents depends on permissions. New documents created under the Free plan are public. When should mechanical CAD software renewal planning begin?Start early enough to review usage, obtain quotes, and secure approval before the earliest contractual notice deadline. Siemens’ published store terms require at least 60 days’ notice of nonrenewal, while Onshape’s Professional documentation requires cancellation requests at least 30 days before renewal. Different agreements may apply, so confirm deadlines before setting your internal schedule. |
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