Adobe will push cloud computing services Creative Cloud increase revenue

Source: Internet
Author: User
Keywords Revenue cloud computing services will share price Lynch

According to foreign media reports, Adobe is currently the way to sell the company's most popular software overhaul, in the hope that through the Internet to sell Photoshop and Dreamweaver applications such as to enable the company to obtain more revenue.

Kevin Lynch, the Adobe Chief technology officer, plans to launch a package called "Creative Cloud" early next year. Kevin Linch. Adobe will allow users to pay monthly to use the service on PCs and mobile devices without spending more than 1000 dollars on the software they contain.

The move will help the largest figure of new design software developer Adobe, reduce the two-year release of software to increase the reliance on revenue, and maintain a steady increase in revenue. In an interview, Lynch said Creative Cloud products would allow Adobe users to easily share their ideas on the web. "The reason we're still here is because we're going to change," Lynch said. Looking at the history of Adobe software, you'll find that one person uses a computer to make things. This individual experience will no longer exist, and in the cloud the user will not be alone. ”

Creative cloud will add Adobe Tools, including photo-editing software Photoshop, Web designer Dreamweaver and publishing application InDesign, to the so-called cloud computing version, which will provide subscriptions to users over the network.

Protect profit margins

Adobe's Creative solution division accounted for 45% of the company's revenue in the previous quarter and 95% of its gross margin. Adobe is currently facing competition from Apple and Microsoft, and the industry is moving from Flash technology to Web programs. Adobe's new approach to software sales will add another challenge: protecting margins above the software sector.

Brent Thill, analyst at UBS, Brent Saille that the introduction of the Creative Cloud service would allow computer users to use Adobe's tools without having to buy software on Mac and Windows PCs to pay a small portion of the cost. "In the short term, Adobe's cloud computing services will dilute corporate profits," says Purcell. ”

Adobe plans to price its Creative cloud service in November. Purcell believes that the price of Adobe's cloud computing services needs to be affordable for freelance designers, and to drive the business forward. Because the desktop version of the Adobe tool runs faster, the large publishers and advertising companies will continue to use the desktop version of Adobe Tools.

Adobe shares fell 0.05 U.S. dollars in the Nasdaq market in Friday, down 0.2% per cent to 25.28 dollars. In the past 52 weeks, Adobe's lowest share price was $22.67, with a maximum of $35.99.

(Responsible editor: The good of the Legacy)

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