Adobe passes 1 million for Creative Cloud, validates going all-in with SaaS

As a long time user of Adobe’s Creative Suite, I was excited when the company launched the Creative Cloud, it’s SaaS version of the software suite that combines Photoshop, Illustrator and a number of other products. It was an intriguing idea, taking what is the dominant product for web and digital creatives, one that has historically been a processing heavy, fairly bloated software suite off of the desktop and making it a subscription product.

It was also financially a big bet; the Adobe CS was expensive as a one time purchase, but people paid it (in large part because it’s almost necessary if you are a digital creative working in as a web designer, illustrator, etc).

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So how has the experiment gone? So far so good, according to Adobe. The company just announced they’ve passed 1 million subscribers to the Creative Cloud, and the pace of growth seems to be actually accelerating (see chart). The company added nearly one third of a million subscribers in the last quarter alone, and its likely that pace could increase since the company has announced that they will not update their packaged software beyond CS6 and all new features will be offered as part of their SaaS offering.

Overall it looks like the move was a smart one for Adobe. They’re attracting customers and they also likely will see a larger lifetime revenue for each individual customer, many of which likely skipped generations of the Creative Suite but now will continue to pay each and every month.

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Michael Wolf

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