| TEL AVIV
TEL AVIV Nov 19 The manufacturing sector and a
shift to cloud computing and an increase in three-dimensional
(3D) designs look to drive growth in the coming years at
computer-aided design (CAD) software maker Autodesk, a
senior official said.
Steven Blum, a senior vice president for global sales and
services, said manufacturing is the company's largest market.
"It's been a growth driver for us and will be for many years
to come," he told Reuters during a visit to Israel.
Autodesk has already issued a profit warning for the third
quarter, saying it anticipates lower demand for its CAD
software. It also forecast fourth-quarter revenue of $560-$580
million, lower than analysts' expectations of $597 million.
Blum said the shortfall was due to a change in its business
model and how and when the company recognises revenue from some
Some 40 percent of its business is now in a model of
recurring revenue rather than recognising sales up front.
"We're looking to move more of our business into that
space," Blum said.
He noted that the global economy has improved somewhat in
the past year, with southern Europe weak, northern Europe and
Nordic countries strong and emerging markets "inconsistent"
"Overall, things are more stable compared to where we where
a year ago," he added.
Other areas expected to help drive growth are in
architecture, engineering and construction and in building
information modelling, where typical 2D drawings are turned into
3D designs. That, Blum said, helps cut down on construction
waste and saves projects money.
Companies are slowly beginning to move to cloud designs,
which Blum believes will be significant for Autodesk in the
future. "We're in the first inning of the ball game," he said.
As part of growth in cloud, Autodesk believes its Israeli
research and development centre can help. Blum said the company
aims to grow its research and development operations in Israel.
Autodesk is also seeking to reduce piracy and target smaller
businesses who cannot afford its software by offering rental