How Adobe Became a Successful $95 Billion SaaS Company

How Adobe Became a Successful $95 Billion SaaS Company

When we think about SaaS success stories, which is the one that people don’t often think about? Adobe.

In 2007, the global revenue of SaaS enterprise application was around $5.1 billion and expected to increase by more than 100% in the next few years. Adobe will soon have to “unlock” its business model.

When Cloud Became an trở thành cơ hội không thể bỏ lỡ

Cloud migration allowed Adobe to protect itself from competitors. The Cloud computing solutions enable on-demand update and upgrade, replacing the traditional 18-24 month periodic update of Adobe.

Giao diện thiết kế của Adobe thời kỳ đầu.

Many high-level managers were concerned about revenue, profit, and stock price risks during the transformation. They were afraid that customers and stockholders would not understand the results of the transformation. Gradually, they might lose faith on the company’s success, leaving the firm’s finance unrecoverable.

Financial crisis and the remarkable turnaround

The financial crisis in 2008 opened up many opportunities as well as challenges when Adobe had realized that they only had a few financial limitations and they needed to expeditiously catch the opportunity to protect the company and its customers.

During this vulnerable times, Adobe chose a risky option of becoming a SaaS firm:

One is, to become a
leader in Cloud.

The second is, to “evaporate” to be a “cloud.”

Adobe’s important milestones

2007: Chaianu Narayen came in with a vision to disrupt the status quo at Adobe and build out more digital media and marketing services to aggressively expand usage.    

2008: Adobe released a webtop version of Photoshop called Photoshop Express. This was designed as a consumer product to be really easy to learn and use, allowing users to make edits to photos, create albums, and share them with others. This demonstrated that Adobe was taking a big step towards embracing the internet by creating a consumer-facing web product that took advantage of the web’s social network capabilities.

2009: Adobe acquired the top enterprise analytics company Omniture. This was important because it allowed Adobe to offer web analytics, measurement, and optimization technologies to Adobe product users directly in their workflow. 

2010: Adobe released eSignatures, a cloud-based signature tool that demonstrated the company was taking more steps toward building for the cloud. When they released the tool, they said that the mission behind it was to build “something that was easy to use, fast, accessible to anyone with an internet connection and a browser, and that wasn’t overloaded with complicated features.”

2011: Adobe made plans to focus more on HTML5—which the rest of the tech industry was doing, as well—to give them more of an opportunity on web and mobile browsers. This was an important flashpoint because it became clear that within the complex tech ecosystem, software companies needed to adjust around hardware companies.

2013: This was the biggest turning point in Adobe’s history. Adobe released Creative Cloud (CC) to take the place of the Creative Suite. They announced that all future versions of their Creative Suite apps would only be available for purchase through a subscription-based service, and only available on the cloud. Their service went from a one-time purchase of $1800 to $50/mo for the entire CC (or $19/mo for a single app).

Nowadays, Adobe is considered a typical case study for successful Cloud migration. Adobe is still growing its product line strongly with Cloud services. Adobe revenue increased. by 23.71% in 2019 (compared to the year 2018) to reach $11.17 billion and net income grew by 13.92% to $2.95 billion.

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