Sees Web as future medium
Last modified on Thursday, 18 October 2007 15:07
Adobe Systems Inc. has announced that it is moving toward launching its new products via the Web as a service, rather than as a retail packaged product. Adobe currently drives most of its sales through packaged retail graphic and Web design software that is installed on a computer hard drive. The company has indicated that it has begun offering some of its software applications online through a service based business model.
Adobe’s CEO, Bruce Chizen, spoke at the Web 2.0 Summit in San Francisco and indicated that while running software on individual desktops with per user licensing is still the most common business mode of delivery for the majority of its customers, this will change over time as broadband becomes more available. Chizen indicated that a complete change in delivery from software boxed retail sales to Web-based operations would likely take up to ten years, since Web-based delivery would be subscription based.
Many retail customers may be reluctant to change from what they view as up-front, flat fee licensing purchases to subscription-based pricing. Chizen indicated that business customers would likely be more willing to pay for subscriptions, since they use products such as Acrobat document-sharing or Photoshop for editing images.
Adobe has begun introducing free bare-bones versions of its design tools, including Photoshop Express, which lets users edit photos online, to create interest and popularity of these new products. Adobe is also offering a free video editing tool called Premiere Express. These new products have been designed to appeal to a younger group of Web users.