These factors contributed to Adobe’s decision to transform its Creative Suite business from a boxed-licensed software model to a monthly cloud-based subscription model, culminating in the launch of Adobe Creative Cloud. As a result, the company saw spikes in revenue every 18 months, but a less predictable revenue stream in interim periods. Furthermore, Adobe’s innovative engineers were developing new product features all the time but had to wait 18 months – the cadence of Adobe’s launch cycles at the time – to release them to the world. Adobe’s creative business was not growing to encompass the new and different ways people were starting to create. Everyone in the world has a creative spark, a story to tell and the means to tell those stories through new mediums, formats and devices was becoming increasingly vast. Firstly, creativity was exploding everywhere. Although Adobe was a successful technology company in creative and document services with flagship products and a beloved brand, CEO Shantanu Narayen and his leadership team saw a tremendous opportunity to grow the business. Lewnes learned everything she knows about marketing under the leadership of mentor Dennis Carter and CEO Andy Grove. She was part of the team that managed the highly successful “Intel Inside” program and oversaw groundbreaking campaigns, including the launches of the Pentium and Centrino processor brands. Lewnes joined Adobe after a 20-year tenure at Intel, where she helped build global demand for the Intel brand from consumers, business professionals and key computer channels. Recently, we had the privilege of interviewing Adobe CMO Ann Lewnes about the role of marketing in this transition.
While ever-present today in 2018, this was not the case in 2013 when Adobe made a then-radical pivot to a subscription model. ISV leaders know that an astounding 84% of net new software is now being delivered as Software as a Service (SaaS). However, many independent software vendors (ISVs) have now pivoted to a subscription-based model to meet increased market demands for great functionality, free trials and seamless onboarding, providing OpEx pricing that’s predictable and easier on corporate and individual budgets. Zuora CEO Tien Tzuo was the first to coin (and trademark) the term “The Subscription Economy,” to describe the trend of buying and using digital products and services on a pay-as-you-go (or grow) model.
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