By Lance Ulanoff2013-05-06 21:55:30 UTC
Adobe's decision to discontinue the boxed version of Creative Suite and move to a subscription software-based model (also known as the Creative Cloud) stunned many customers, but considering recent moves, like the acquisition and integration of Behance, the introduction of a cloud subscription option and Adobe’s desire to support transmedia activities, none of this should come as a surprise. Even so, customer shock, anger and confusion are well in evidence in the hundreds of comments piling up under Mashable's post on the announcement.
With that in mind, Mashable got on the phone with Adobe CEO Shantanu Narayen to dispel at least some of the myth and rumor surrounding Adobe Creative Cloud.
Narayen said that there are more than a few financial changes that come as a result of the switch. Without boxed software, the relationship with channel partners changes (though Narayen didn't say exactly how). In fact the whole financial model changes. Among the new performance metrics Wall Street will look for in Adobe is "number of subscribers" and "annualized recurring revenue."
Narayen also admits that they won't be paying for product packaging any more.
On the other hand, some costs are rising for Adobe: Narayen said cloud services require storage space. There is also the expectation, with cloud-connected services, that updates and innovation will arrive more quickly, "For engineers and the product team, it's a canvas for delivering products and innovation at a more rapid pace."
While this isn't a move solely devoted to defeating software pirates, Narayen says the shift will improve the situation. "It allows us to provide different offerings in different emerging markets without worrying about gray markets."
There's an ongoing debate in Mashable's comments about whether or not Adobe's subscription model will cost Adobe customers more than buying Creative Suite 6 outright (with a perpetual license). Narayen insists that the cost for Adobe CC is now lower for "any customer." Those costs are now more predictable, he added.
There's also, Narayen contends, the chance that customers will save money because they don’t have to pay for additional services that now come with Adobe CC. These include cloud-based storage and even Behance, which allows Adobe CC users to "share portfolios and monetize skill sets," said Narayen.
As for those who just purchased Creative Suite 6, Adobe is offering aggressive discounts.
Whether customers are looking to start out on Creative Suite or are current customers, Narayen sees great benefit in this new path. "To a lot of people, they've actually stated that the lower price of entry is in all honesty a better way for them to become a member of the creative cloud generation," he said.
Adobe's Creative Cloud is not exactly a cloud-based app. Narayen accurately describes it as a hybrid solution. You will still install local software. The subscription model ($29 a month for an app or $49 a month for the full Creative Suite) means you gain access to the latest software updates as soon as they become available in the cloud, as well as all the cloud-based services and integration available to CC members.
No Internet? No problem. Narayen told Mashable the apps will still work. "It's the best of both worlds," he added.
Adobe no longer sells boxed software, though you can by perpetual license versions of Adobes' hobbyist Elements software products. Narayen said Adobe has no immediate subscription-based plans for those products, but the migration to digital copies is the wave of the future. Narayen's advice to the rest of the software industry, "Companies that wish to thrive in this next tech era need to embrace or perish. We’re not only embracing, we’re leading."
Even so, not everyone has broadband access and for those who find downloading Creative Suite-sized apps prohibitive, Narayen promises, "We'll get them the software they need."
In a word, yes. During the Adobe MAX Convention in Los Angeles, the software giant showed off two intriguing prototypes: One a digital ruler and the other a cloud-connected stylus or pen. The pen makes it possible to, Narayen explained, have “all your assets with you on any device.” Narayen cautioned, however, that neither one of these products is shipping.
Narayen, who has been with Adobe since 1998, is the first to admit that he could not have envisioned today's digital landscape 15 years ago. "It's amazing what has happened with technology and what Adobe has done ... We are not just transforming how people make this content, we're transforming how they manage it, how they measure it and how they monetize it."
Perhaps Narayen is so sanguine about the changes because he's been through this before. When Adobe announced in 2003 it was introducing product "collections and suites," customers and industry watchers wondered about Adobe's motivations. Was it all about money? Ultimately Adobe's Creative Suite of products became the standard.
Narayen anticipates a similar kind of embrace for Adobe CC. "A few years from now, people will say, 'How could I even imagine a Photoshop that was not connected to the cloud?'"
What do you think of Narayen’s explanations? Are you ready for subscription-based creativity software? Let us know in the comments.
Image via Justin Sullivan/Getty Images
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