Adobe pulls a Microsoft 180

Subject: General Tech | June 20, 2013 - 11:00 AM |
Tagged: Adobe, oops, SaaS

The initial outcry from users of Adobe's Creative Suite because of their move to providing only Software as a Service was mostly ignored by Adobe.   The 10% decline in sales and 66.8% decline in profit for Q2 of this year compared to last year is a little harder to ignore however and shows just how upset Adobe's customers were with this decision.  The Register reports that most customers were upset by the licensing fees which essentially force them to constantly pay Adobe instead of purchasing a product as a one time expense and skipping a few generations of software before purchasing a new Creative Suite.  The solution Adobe has offered is to perpetually sell and support the last boxed edition, Creative Suite 6 ... and there was some rejoicing.

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"Adobe dropped the D-bomb during a Q2 conference call with analysts after admitting some customers are "disappointed" it decided to murder future copies of its boxed Creative Suite.

Clearly top brass at the company were living in er…cloud cuckoo land when they revealed last month that future Creative Suite versions would only be web-based, a move that went down badly with some channel partners and their customers."

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Source: The Register
June 20, 2013 | 11:32 AM - Posted by Concerned Consumer (not verified)

What Adobe and Microsoft have failed to realize is that consumers, by and large, want CHOICE. Some customers will be really happy with subscription, digital, or web offerings, but others will want to continue to use what they have known and loved. You can use new media without closing the door on old media.

June 20, 2013 | 12:12 PM - Posted by Anonymous (not verified)

Frankly, I am pissed that Adobe has gone to this model. As a CS user who infrequently uses the software in that suite, I find it hard to swallow paying $54 a month for software that I rarely use. However, I cannot get one piece of the software without paying for all of it - Acrobat.

Adobe needs to allow you to pay until paid for. Meaning, you pay a higher subscription fee for a period of time that it takes to pay off the total sum for the product if you were to buy it for cash, then pay a very small monthly charge after that to maintain your software and keep cloud space available. So, if the suite of products is say, $1,500, then charge $125 a month for 12 months, then charge $5 a month thereafter. Once an upgrade comes out, you can give them the opportunity to buy the upgrade in the same manner [discounted for current subscribers].

June 20, 2013 | 12:51 PM - Posted by Anonymous (not verified)

How does that work as they add new features? The whole point is there won't be anymore traditional *upgrades* where they wait a year or 16 months and then offer major updates to all products at once. Instead, a month from now, new features may roll down the pipe for any of the products. The next three months from now, possibly more and then maybe more two months after that. Unless you specifically never download any of these new features, how would you set a "pay-off" price? That's the whole point of the subscription model. You're getting on bard with the subscription today for what they offer now as well as all future updates as they are ready to be released. You can't say you bought everything they haven't even released before they've release or possibly even developed it so what have you actually bought if they aren't going to actually have Photoshop CC2? Photoshop CC at the features set for January of 2013? What will they do? Take away the newer features you haven't "bought"?.. This is definitely a dilemma Adobe created but the "I've paid enough to buy it so it should be mine or I'm now paying a minimal maintenance fee" idea simply won't work with the way the software is now being developed.

June 20, 2013 | 01:56 PM - Posted by Anonymous (not verified)

Yes but the M$ turnaround is actually back to back 180's followed by a few random somersaults and turns, all while doing a 3 card monte! Pick a card any card! Oh you picked that card! Look over there, behind you, it's a unicorn, [card switch], Oh your wrong, now you're Xboned!

June 21, 2013 | 04:26 AM - Posted by Virtuous (not verified)

I just love how customers rejected Adobe's poor decisions. Trying to strong arm customers is bad business.

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