Over the past decade, enterprise software in the engineering and construction (E&C) sector has steadily migrated away from traditional perpetual licensing toward subscription‑based and consumption‑driven models, though adoption varies across vendors. In this paper, we evaluate how three E&C software providers—Autodesk, Bentley, and Hexagon—are navigating this shift. While Autodesk and Bentley have already executed decisive structural shifts, Hexagon is yet to transition from perpetual licenses to subscription models, preserving elements of historical licensing stability for now.
Together, Autodesk, Bentley, and Hexagon anchor design, engineering, asset, and infrastructure workflows that are deeply embedded in capital programs and operational delivery. As a result, even incremental licensing or pricing changes can have a material downstream impact on project economics and long‑term budgets.
Historically, E&C enterprises benefited from relatively predictable multiyear agreements, pooled or concurrent usage rights, and manageable annual escalations. Procurement strategies focused on seat counts, version control, and renewal timing. That stability has eroded. What was once a gradual evolution has accelerated—at different speeds—into a broader reset of pricing power, packaging control, and commercial governance.
Over the past 18–24 months, Autodesk and Bentley have implemented changes that go well beyond routine price increases. These moves reflect deliberate strategies to increase monetization, reduce customer optionality, and embed next‑generation capabilities, particularly cloud delivery, analytics, and AI, into core enterprise agreements.
Hexagon, by contrast, occupies a more nuanced position. Despite raising prices and tightening commercial execution, it has so far avoided the kind of sweeping licensing restructures seen among its peers. This distinction matters, but it should not be mistaken for long‑term immunity.
Autodesk has aggressively tightened its commercial framework by dismantling long-standing discount structures and accelerating the transition to named user licensing.
Key developments include:
At the same time, Autodesk continues to push customers toward a mix of named user subscriptions, token-based Flex licensing, and Enterprise Business Agreements (EBAs). While positioned as “flexible,” these models often increase cost exposure for large or distributed teams unless usage is actively measured and optimized.
Bentley’s Enterprise 365 (E365) program represents one of the clearest examples of a structural reset in the E&C software market. By removing per‑user constraints and billing based on actual consumption across the portfolio, Bentley has traded predictability for breadth and speed of adoption.
Since its launch in 2020, Bentley’s E365 program has grown to account for approximately 45% of Bentley’s total annual recurring revenue in 2024, and Bentley has signaled its intent to transition most large enterprise customers to this model.
While E365 enables experimentation and enterprise‑wide access, it also introduces:
Without strong contractual guardrails, enterprises risk unplanned escalation as usage scales or definitions change.
Compared with Autodesk and Bentley, Hexagon has so far taken a more conservative approach to licensing transformation. Across several portfolios, perpetual licenses and traditional maintenance structures remain available, and there has been no broad forced migration to subscription-only or consumption-based models.
That said, this relative stability should be viewed as a temporary advantage, not a structural assurance. Enterprises are already seeing pressure manifest in subtler ways:
Hexagon’s posture today mirrors where Autodesk and Bentley were several years ago—incremental tightening rather than abrupt overhaul. For enterprises, this creates a narrow window to lock in protections before more disruptive models emerge
Taken together, these shifts introduce a new set of enterprise-wide challenges:
These are not isolated vendor actions. They reflect a broader recalibration of power between software providers and enterprise buyers.
In this environment, engineering‑led enterprises must confront several strategic questions:
Data-backed negotiation is no longer optional. Enterprises need visibility into:
Quantifying these elements enables buyers to challenge forced bundling, automatic upgrades, and discretionary pricing.
The core issue lies in the consumption‑based pricing model. Traditional negotiations focus on unit price reductions, but real value requires a strategy around usage governance. This would entail monitoring consumption against committed floors, improving demand forecasting, and pre‑negotiating differentiated price points for acquisitions and growth scenarios. Without this, consumption‑based models erode savings over time, as volumes and scope expand. Establishing robust governance and commercial controls is therefore essential for sustainable cost avoidance—something conventional, price‑only negotiations fail to deliver.
Given the convergence toward more restrictive models, E&C organizations should evaluate architectural alternatives where feasible, establish internal governance for platform usage, and pursue contractual safeguards that vendors are increasingly reluctant to offer.
As Autodesk, Bentley, and Hexagon recalibrate their licensing models and pricing power, E&C–focused enterprises increasingly need structured, data‑driven interventions rather than reactive renewal management.
Drawing on its work across large‑scale licensing disruptions in the E&C ecosystem, including named user enforcement, consumption‑based enterprise licensing, discount rollbacks, and early‑stage subscription transition pressure, Avasant helps organizations reassert control over engineering software economics.
Specifically, Avasant supports E&C enterprises by:
In an environment where E&C software vendors are steadily tightening commercial control, Avasant enables enterprises to move from reactive renewals to proactive, benchmark‑driven negotiation and governance, thus preserving leverage, protecting budgets, and sustaining long‑term value.
Avasant Case StudyAvasant assisted one of the largest engineering and construction firms based in the US with the renewal of a significant enterprise software agreement utilizing a consumption-based pricing model. This engagement included leading comprehensive market benchmarking and conducting negotiations on behalf of the client. We delivered a detailed deal analysis, price benchmark, and negotiation deal sheet, followed by active negotiation support focused on discounting, escalation controls, and usage governance. The engagement enabled the client to challenge the vendor’s proposed pricing and escalation structure, reset commercial guardrails, and strengthen consumption governance—ensuring sustainable cost control beyond traditional, price-only negotiations. The outcome was an immediate cost avoidance of $1.2 million, just around “minimum consumption” figures, and an expected cost avoidance of $2.8 million over the next three years through the robust governance put in place around consumption. |
Autodesk, Bentley, and Hexagon are converging on a common long‑term objective: higher, more predictable enterprise spend driven by tighter commercial control, cloud delivery, and expanding platform scope. The difference lies in timing and intensity.
E&C enterprises that respond passively will face escalating costs and diminishing control. Those that act now, especially in areas like Hexagon, where structural change has not yet fully materialized, can safeguard their leverage, protect capital program economics, and maintain strategic flexibility. The key factor will be effective governance of these platforms, not just adoption.
By Krishnendu Moulick, Partner, and Gaurav Dewan, Research Director
Avasant’s research and other publications are based on information from the best available sources and Avasant’s independent assessment and analysis at the time of publication. Avasant takes no responsibility and assumes no liability for any error/omission or the accuracy of information contained in its research publications. Avasant does not endorse any provider, product or service described in its RadarView™ publications or any other research publications that it makes available to its users, and does not advise users to select only those providers recognized in these publications. Avasant disclaims all warranties, expressed or implied, including any warranties of merchantability or fitness for a particular purpose. None of the graphics, descriptions, research, excerpts, samples or any other content provided in the report(s) or any of its research publications may be reprinted, reproduced, redistributed or used for any external commercial purpose without prior permission from Avasant, LLC. All rights are reserved by Avasant, LLC.
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