Technology Futures

This week, an Adobe exec demonstrated a suite of cloud-based applications designed to run with a touch interface.  Adobe calls it the “Creative Cloud.”  Its strategy is to change from selling software in the box to selling software on a monthly subscription basis.  The exec said that Adobe expects half its sales to be subscription-based by 2015.

I’m a big proponent of subscriptions.  It doesn’t matter if it is a magazine or a renewable lease on a $100 million jet plane.  Customers tend to renew subscriptions without giving the process a lot of thought.  Thus subscriptions tend to guarantee an ongoing revenue stream without a lot of extra sales effort.  Most sales managers will tell you that it costs 4-5 times as much to get a new customer than it does to renew an old one.  One only has to look at the example set by Netflix to see what…

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