Feeds

Adobe CEO admits need to 'tweak' Creative Suite's cloud-only policy

But way forward for cloud sceptics 'not identified'

Designing a Defense for Mobile Applications

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.

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.

CEO Shantanu Narayen talked up the cloud at every turn during the call with financial analysts, stating that the "overwhelming" majority of customers that bought via its website had chosen Creative Cloud rather than CS 6, the last boxed version.

It exited the quarter with 700,000 paid subscriptions in the Digital Media unit, up 221,000 sequentially - the goal is to hit 1.25m by year-end - and he claimed "satisfaction rates are high"

But not among all, he admitted:

"Our decision to discontinue perpetual licensing of new versions of our desktop products has caused concern with some customers," said Narayen.

"While we will still continue to offer CS6 on a perpetual basis, the feedback from our community is important, and we are evaluating additional options that will help them with the transition," he added.

He claimed its "execution" of the Creative Cloud had been "spot on" but admitted it does not yet have a solution.

"We're looking for tweak that would lead to a better customer outcome. We don't have any that we've identified today".

The criticisms from customers centred largely the price, with some suspecting the monthly subscription is just a way to extract more money from users who traditionally skip a generation of software at a time.

Narayen said channel partners are raising "efforts to market and license" the Creative Cloud, increasing adoption of Enterprise Creative Cloud and cross selling the Marketing Cloud.

"We are using our Adobe Marketing Cloud technology to manage and optimise the Creative Cloud customer acquisition process," said Narayen.

In the Q2 numbers, Digital Media unit revenues hit $670m including the Creative product family and the Document Services products, down from $812.5m.

The Digital Marketing business turned over $229.6m, up 17 per cent year-on-year. and Print & Publishing came in at $551m, flat on a year ago. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.