Adobe eyes move to software-as-a-service

Over the next ten years, Adobe plans to shift its business away from selling boxed software to a web-based distribution model. Chief executive Bruce Chizen told the Web 2.0 Summit in San Francisco that money could be charged for subscriptions or raised by selling advertising. Chizen claimed that the delay in services being delivered over the internet was partly down to broadband speeds: "The desktop is a powerful machine in which to run applications. But broadband, as quick as it gets, is still going to have some limitations in the short term." Which business model would you prefer for Adobe to take?

News source: vnunet

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8 Comments

I think they should still offer Boxed versions. I think Advert supported would be nicer, but financially I think they will go with subscription.

I think they need to simply lower the price on their boxed software. More people would actually purchase creative suite if it wasn't $1000 +

This is a bad idea for the consumer. At home, I use office products all the time, I couldn't imagine paying every time I use the "service". these companies would be rolling in the dough if they do this.
I for one will not be supporting this because of the low income families that have a problem already with purchasing any software.
It's not always about the corporation to me.

Agree, it will also come a time that not only you pay for use (you can't own it) of the software but to "keep costs down to you" were going to throw in advertising.....

Companies are addicted to positive forecasted cash flows. Subsciption services offer them just that.

Knowing that they get, let's say, 10$ every month for the whole year is better for them as opposed to just charging $120 at the beginning of the year. That's how corporate finance works and cash flows are one of the major financial performance indicators. It is a great way to avoid fluctuations in seasonal demands too.

I think MS has already speculated about subscription based Windows usage too.

It's all about getting more money.

Imagine this. If a software costs $120 a year, will anyone really fuss if it goes to $10 a month? Well, here is the situation. What if a software went from $120 to $180? People would fuss. But what if it went from $10 a month to $15 a month? It is the exact same thing, but people wouldn't care as much. THAT is why subscriptions services are so tempting to companies. They can make little tiny increases and get large gains with minimal consumer fuss (at first).

The day that I have to subscribe to software as a service, for use over my internet connection, is the day that my computer will become little more than a paperweight.

Granted, I already use GIMP for image editing and Inkscape for vector graphics, but if I were a Photoshop/Illustrator user I wouldn't be anymore.

Software-as-a-service is a S-C-A-M. Pay $DOLLARCOST/month to keep access to my own files? Screw that. There are times when I go more than a month without ever touching my image editors. What am I paying for then?

Go take a flying leap, Adobe. I don't pay to rent, I pay to own, and software is no exception.

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