Adobe CEO: The Truth About Creative Cloud

Mashable by Lance Ulanoff

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.

Is It About the Money?

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." read more...

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