Adobe: Super subs

Plenty of big software firms—and ones in other industries—are developing cloud strategies too. But few have been as bold in their approach as Adobe. “The transformation of its business model has been pretty drastic,” says Brent Thill of UBS, an investment bank. So has the transformation of its bottom line. Instead of forking out up to $2,600 for Creative Suite, its flagship design package, on a disc, customers can now use its Creative Cloud service, which offers the same applications (plus a few additional ones) online, with a 12-month subscription costing $50 a month, or a month-by-month fee of $75. This has caused Adobe’s profits to crater in the short term, but investors are betting that they will rebound over time, as the subscription model attracts many new customers who had balked at the prices of its packaged software.

via Adobe: Super subs | The Economist.

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