Adobe has announced that it will transition Creative Suite (shrink-wrap version), which includes Photoshop, toward Creative Cloud, a subscription-based service for software and updates. Creative Suite’s traditional business model “revolved around one-time product licensing.” Knowledge@ Wharton analyzes the transition and makes these following points:

  • for customers, the “cloud” business model will ultimately be beneficial
  • other software companies are likely to follow
  • the move acknowledges “that software is rapidly transitioning toward collaboration, subscriptions and use on multiple platforms such as Apple’s iOS, Google’s Android, Mac OS and Microsoft’s Windows”
  • both SAP and Oracle have been moving away from a one-time licensing model
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