Autodesk Cuts Quotas

Solution providers were briefed about the changes on Aug. 16, although Autodesk Chairman and CEO Carol Bartz mentioned them earlier last week during the software vendor's second-quarter earnings call with financial analysts.

In the call, Bartz said Autodesk has lowered the revenue forecast for its 2003 fiscal year, which ends Jan. 31, 2003, to between $869 million and $900 million. "As we've had to lower our guidance for the year, obviously that meant our quotas were out of whack for the channel," she said.

The quota changes took effect Aug. 1 and apply to Autodesk's third and fourth fiscal quarters, said Ray Piontek, vice president of sales for the Americas at the San Rafael-based vendor. Later this year, Autodesk will evaluate whether or not to make the changes permanent, he said.

Under the new program, solution providers can earn spiffs each month by hitting a predetermined percentage of their quarterly sales goal, according to Piontek. For example, an Autodesk VAR could get a spiff by reaching 20 percent of its quota in the first month of a quarter, and the spiff would be paid even if the partner ultimately failed to reach its quarterly numbers, he said. The partner would get another boost if it reached both its monthly and quarterly goals, he added.

In the past, solution providers were paid spiffs only if they reached their quarterly goal, Piontek said.

Many Autodesk partners have counted on spiffs to supplement their annual revenue, said Richard Burroughs, president of Applied Software, an Atlanta-based Autodesk solution provider.

"For some resellers, I would expect this to mean the ability to be profitable or not profitable," he said.

Piontek declined to specify the percentages that will be used to calculate the new spiffs. He said solution providers will automatically receive the August spiff because the program is being applied retroactively.