adobe takes a beating

[Techman]

The impact of this metamorphosis into SaaS provider was apparent in Adobe's Q2 sales, which slumped ten per cent to $1.01bn as net profit dived 66.8 per cent on a year ago to $76.5m.


wow,, sales down 10%

http://www.theregister.co.uk/2013/06/19/adobe_q2_customers_disappointed_with_no_boxed_wares/

 

[slipperyfrog]

Good for them the greedy bastards.

 

[Bobby H]

Unfortunately they're not backing down from the "cloud-only" policy. At least not yet anyway.

Perpetual license owners of recent creative suite generations -such as CS5, CS5.5 and CS6 who are running those suites on fairly recently purchased computing hardware have all the leverage they need to wait Adobe out.

Creative Cloud subscriptions might have their place. But, IMHO, it's flat out short-sighted for Adobe to make it the only purchasing option. I think they need to continue releasing perpetual licensed versions of all their applications (even the new "edge" based web apps). Not only that, but they need get rid of that stupid one version back upgrade policy they adopted last year. That did more to anger me than their move to go "cloud only." The 1 version back upgrade policy effectively forces any registered user to buy every upgrade, no matter how lame or bad it may be, just to maintain upgrade eligibility.

If Adobe's CEO wants some ideas on how to improve sales and creative cloud subscription levels he might want to try a few things.

1. lower the subscription price of Creative Cloud from $50 per month down to $30 per month. Or create different subscription tiers similar to how the boxed suites were organized (Master Collection, Design Premium, Web Premium, etc.).

2. continue selling perpetual licenses of the software. Get rid of that arrogant 1 version back only upgrade policy. Make it at least 2 versions back for upgrade eligibility. Lower the price penalty of skipping a version upgrade. Adobe needs a "carrot" of incentive to make every upgrade worth buying. Packaging a collection of bug fixes and cake icing features doesn't work as a full version upgrade. Adobe has been doing plenty of that in recent years.

 

[OldPaint]

all adobe is doing is allowing the lesser know programs.......A CHANCE TO BE ACCEPTED.HEHEHEHEHEHE
i have never used ILLUSTRATOR or PHOTOSHOP. iam sure there are many more like me.

 

[WildWestDesigns]

1. lower the subscription price of Creative Cloud from $50 per month down to $30 per month. Or create different subscription tiers similar to how the boxed suites were organized (Master Collection, Design Premium, Web Premium, etc.).

This would be my biggest complaint here. My workflow doesn't demand the use of the entire suite, but to do everything that I need as single individual subscriptions is even more cost prohibitive.

I also believe that when you follow a subscription model, you really can't price yourself in the same manor compared to that of a perpetual license. You are giving less control to your customers, there has to be an incentive for the customers to be able to accept that.

2. continue selling perpetual licenses of the software. Get rid of that arrogant 1 version back only upgrade policy. Make it at least 2 versions back for upgrade eligibility. Lower the price penalty of skipping a version upgrade. Adobe needs a "carrot" of incentive to make every upgrade worth buying. Packaging a collection of bug fixes and cake icing features doesn't work as a full version upgrade. Adobe has been doing plenty of that in recent years.

Now, here I don't have a problem with the price penalty for Adobe software. I have software that 1 gen back upgrading costs as much as Design Standard new. That doesn't bother me as much as the rest.

 

[Bobby H]

There are other news reports taking a more positive spin about Adobe's earnings. When Adobe was primarily selling boxed software their revenue would go up and down in fits and starts. With revenue shifting to subscriptions the earnings are lower, but may run at a more consistent level -if subscriber numbers are up high enough.

 

[Robert Boyd]

I subscribed to the cloud. I am paying $30 per month for the first year. My G5 Mac is too old to upgrade to the latest versions of Illustrator, PS & ID. For me to replace my Mac and upgrade Illustrator, Photoshop & InDesign would have been a hefty price tag. I personally do not use those programs, but receive customer files in those formats. CorelDraw X5 just isn't good enough for importing Adobe files. But I agree that if all programs go to the cloud it could be a problem. If Adobe changes its mind, I would probably purchase Illustrator only.

 

[Deaton Design]

I subscribe to illustrator for 20 bucks a month. Its worth it to me, as I have been an illustrator user for years. I agree that they will have to make some changes in the whole process though, to keep people
happy. 30 per month for the whole package would definitely bring in more users. Piracy no doubt caused some of this, but heck, it doesnt stop them. As long as there are computers, there will be pirates of software, clipart
and the like. Its a shame, but the truth none the less....

 

[Brent MacGillis]

I received the 20$ per month price because I own CS6. After a year it increases to 50$. I'm hoping that Adobe reduces the price to 30$/month by then. I usually only use Photoshop and Illustrator but from time to time I use Dreamweaver and InDesign. For this reason I feel subscribing is worth it. There are many bonuses when going to CC and if you take advantage of all of them it can justify the cost. Lets hope they reduce the monthly cost to reflect a bi-annual upgrade cycle though.

 

[nikdoobs]

illustrator cc has some bugs that need to be fixed

Deaton, Have you experienced bugs in Illustrator CC? My keyboard commands only work half the time. It's a pain in the butt. I called and they said it's because I'm using the wireless keyboard that comes standard with new imacs. They need to release the bug fix soon!

 

[rjssigns]

Adobe is in business for Adobe. Costs way more with the cloud and that's how they want it. I like Illustrator and Photoshop, but when the time comes to pay monthly I'm done. Just have to learn CorelDraw on PC again. No problem.

 

[nashvillesigns]

robert-
while you are in a unique situation to be that far back in architecture, going to a 2008-2009 mac pro would only set you back 700-1200 bucks. you would be able to still run your current software and update THAT after a couple of good jobs. instead, you are going to wait until your computer gives you a coolant leak and then you you will be forced to upgrade. personally, since mac is coming out with the NEW mac pro this fall, the prices on these older pros is gonna really drop. That is what i am waiting for since of the three shop computers i have, there is still one dual 2.7 power pc left!
i run 10.6 with CS 5.5
i used to run that with 10.5.8 after the upgrade, i couldn't beleive how much better CS ran...

good luck.
chris

 

[WildWestDesigns]

Adobe is in business for Adobe. Costs way more with the cloud and that's how they want it. I like Illustrator and Photoshop, but when the time comes to pay monthly I'm done.

Very very true. Those that say it's cheaper or it's only the cost of one good job aren't looking it over a cumulative effect.

Just have to learn CorelDraw on PC again. No problem.

If you don't have to worry about outside files, Inkscape isn't a bad alternative. For me, GIMP is a full time alternative for my workflow compared to Ps. Inkscape has it's flaws even if it is just my own vector creations, but they do have work arounds.

 

[TyrantDesigner]

In theory I like cloud based software ... In reality, I hate the concept actualized so far. I get it, people steal your over priced software so create a way to prevent the theft ... how you are losing money as a whole ... I just don't get it really. Maybe if they actually did something to IMPROVE the software function every version ... but I only upgrade software that does require that jump from x to y because there are features that kick you in the face it's so awesome.

Oh well. It only causes people to keep their old version a lot longer.

 

[rjssigns]

Very very true. Those that say it's cheaper or it's only the cost of one good job aren't looking it over a cumulative effect

.

Ding ding, give that man a prize. Someone actually gets it. Wonder how cloud stuff works at tax time since there is nothing tactile, in a box or a disc? Could be a way to "save" some money though. Gee Mr. Revenuer I have 10 no 20 cloud accounts that I need to write off. Yeah that's what I said, 25.

If you don't have to worry about outside files, Inkscape isn't a bad alternative. For me, GIMP is a full time alternative for my workflow compared to Ps. Inkscape has it's flaws even if it is just my own vector creations, but they do have work arounds.

Thanks for the tip. I'm also very interested in iDraw for the Mac. $24.95 and the interface and tool bars look exactly like Illustrator.

 

[WildWestDesigns]

Thanks for the tip. I'm also very interested in iDraw for the Mac. $24.95 and the interface and tool bars look exactly like Illustrator.

I have iDraw on the iPad. Wonderful little app. It's not as mature as Ai (another point as to why I think Adobe is doing subscription based, due to the maturity of Ai and Ps (even more so with this since it's their flagship program)), but it still does really good.

 

[PrintItBig]

robert-
while you are in a unique situation to be that far back in architecture,

I wouldn't say that's a unique situation at all. I know many companies who still run Power PC macs with CS4. Probably more for the reason that they don't want to upgrade their Macs than the software.

To be honest most of you guys get off lightly by living in the US. Try living in the rest of the world where the cost is almost double.