Moving to the Cloud: Adobe’s Creative Cloud

Summary

In this article, we explore Adobe’s decision to move to the cloud with their Creative Cloud platform. The move was driven by the desire to allow customers to create wherever inspiration strikes and collaborate more effectively. The new business model offers a pay-as-you-go subscription process and is geared towards the next generation of creatives. Adobe has had to innovate and move away from their traditional product cycle to keep up with the fast pace of innovation. The shift to the cloud will increase subscriber and ratable revenue and make the revenue stream more predictable. However, getting the message out about the benefits of the cloud and why it is better for consumers is a challenge.

The decision to move to the cloud
Innovating at a rapid pace
Challenges of the shift to the cloud
Developing a new platform for digital magazines

The Decision to Move to the Cloud

Shanya Naraya, CEO of Adobe, recognized that customers want to create wherever inspiration strikes and take advantage of tablets as both creation and consumption devices. Collaboration was also a key factor in the decision to move to the cloud. The Creative Cloud allows Adobe to innovate at a much more rapid pace and offers a pay-as-you-go subscription process. The new business model is geared towards addressing the next generation of creatives who are comfortable with the uncertainty and ambiguity associated with the cloud.

Innovating at a Rapid Pace

The move to the cloud has changed the financial relationship with customers, and Adobe is now releasing annual cycles of products. The goal is to keep up with the incredible innovation happening with new operating systems and tablets emerging. Adobe has had to innovate and move away from their traditional 12 to 18-month product cycle to keep up with the fast pace of innovation. They have introduced new products that will only be offered through the cloud and are engaging with their community in a beta process to get feedback.

Challenges of the Shift to the Cloud

The shift to the cloud will increase subscriber and ratable revenue and make the revenue stream more predictable. However, getting the message out about the benefits of the cloud and why it is better for consumers is a challenge. The cloud offers a do-over for publishers, allowing them to create, manage, deliver, and monetize content in a more engaging way. Adobe’s value proposition for publishers is helping them create content and telling them who has viewed it. The challenge is to keep innovating and ensure that the shift to the cloud does not cause disruptions for enterprise customers.

Developing a New Platform for Digital Magazines

The speaker discusses the development of a new platform for digital magazines, which has been in progress for nearly three years. They state that the tablet is not just a web on a device and that it offers an opportunity to engage with a community and deliver monetization. However, the process of getting content onto iDevices and Android devices is not yet easy. The speaker notes that tablets are more engaging than the web, as measured by analytics software. They also mention the challenges of maintaining a high-quality layout across different screen sizes, aspect ratios, and operating systems.

Conclusion

Adobe’s move to the cloud with the Creative Cloud platform has allowed them to innovate at a much faster pace and offer a pay-as-you-go subscription process. The shift to the cloud will increase subscriber and ratable revenue and make the revenue stream more predictable. However, getting the message out about the benefits of the cloud and why it is better for consumers is a challenge. The development of a new platform for digital magazines shows Adobe’s commitment to engaging with their community and delivering monetization opportunities. The challenges of maintaining a high-quality layout across different screen sizes, aspect ratios, and operating systems will need to be addressed as the shift to the cloud continues.