Transfer Pricing Associates

Adobe shifts to Cloud

post Wednesday May 15, 2013

As the technology of cloud computing continues to grow and become more widely integrated throughout business and day to day lives for almost all individuals, major companies will continue to restructure business strategies to adapt to the changing environment and possibilities associated with cloud computing. In a recent announcement from software giant Adobe, the company announced that Adobe Creative Suite (CS) 6 will be the last iteration to be distributed in a boxed format. Following CS 6, Adobe will distribute their major products, Photoshop, Illustrator and InDesign via cloud capabilities.
The shift to cloud distribution is based on more than strictly a change in distribution methods. Adobe will now focus on creating timely updates to the subscription based Creative Cloud that is available to customers around the world. Consumer demands have now evolved. In the past, major software companies worked to accumulate a wide range of improvements or new features for a application over the course of a year or a year and a half and then subsequently release a new edition of software. Users now clamor for more consistent updates and prefer improvements to be made as they are completed instead of waiting for a large upgrade or innovation over a longer period of time. Adobe’s shift from traditional boxed software to the subscription-based Creative Cloud will allow the company to align more closely with changing consumer expectations and desires.

There are a handful of benefits from the shift to the Creative Cloud. The obvious benefits include an alignment with what users of the current software expect and a potential reduction of distribution costs.  Additionally, any past issues of discrepancies between versions or services offered on one form of the software are eliminated. One of the biggest benefits for Adobe is a more consistent revenue stream that is generated by the subscription-based Creative Cloud. The constant revenue stream will allow for more predictable investment and expansion of research and development, which should ultimately lead to greater innovation and a more successful product. With the shift to the Creative Cloud only, this will allow for Adobe to further integrate and promote their Marketing Cloud service and hopefully continue to expand this new avenue for growth for the company. As cloud capabilities continue to grow, it is likely that the business context will see more changes to profit and distribution models.
Source: TechWorld
Image source: free digital photos
Looking for more great content? Subscribe to our RSS feed to get articles as soon as they are posted.
Coming up:
Web seminar: Get Smart! Get a holistic view of your intangibles
Web seminar: How to manage and value IP?

Leave your comment


Comments on 'Adobe shifts to Cloud' (0)