Adobe passes the 2.3 million subscribers mark for Creative Cloud

Stuart Lauchlan Profile picture for user slauchlan June 17, 2014
2.3 million - and counting. That’s the latest subscription number for its Creative Cloud bandied around by Adobe, which seems comfortably on track to hit its 3 million subscribers goal by November.

Shantanu Narayen
Shantanu Narayen

2.3 million - and counting. That’s the latest subscription number for its Creative Cloud bandied around by Adobe, which seems comfortably on track to hit its 3 million subscribers goal by November.

Even the outage which brought the Creative Cloud down last month hasn’t stemmed enthusiasm, says Adobe CEO Shantanu Narayen:

With all cloud-based services, the new reality is that we have to be even more vigilant about making sure that we have 100% uptime. The outage that occurred should really never have happened. There was a sequence of things. And we have learned from it as well as introduced additional safeguards and redundancies as a preventive measure. I think our outreach to our customers has helped address any issues and we did not see any real impact from that outage.

Today it’s the case that 53% of Adobe’s $1.07 billion quarterly revenue reported yesterday is recurring revenue from subscriptions to both Creative Cloud and Marketing Cloud.

Today the firm will announce new Creative Cloud functions and add-ons, designed to target hobbyists and consumers, including former Photoshop Elements and Photoshop Lightroom customers.

Narayen explains a key goal is increased collaboration potential:

We do want people to be able to collaborate effectively whether it’s freelancers who are working with other freelancers on a project, whether it’s people who wish to show their portfolios on Behance as well as within an enterprise people wanting to collaborate either through Creative Cloud or through our Marketing Cloud, Adobe Experience Manger solution.

We have actually now turned on the ability for people to save files for anybody whether you are a trial user or whether you are a full user, we have functionality that is now present in Creative Cloud that people – allows people to share individual files, allows people to share complete folders. And the way we will continue to encourage that is by integrating it directly into the desktop applications.

Marketing Cloud

On the Marketing Cloud front, Adobe has won recognition as a leader in Forrester’s Web Analytics Wave report while in Gartner’s Multi-Channel Campaign Management Magic Quadrant, it clocked up the highest scores for completeness of vision.

Total transactions managed by the Adobe Marketing Cloud grew to more than 6.3 trillion in the pas three months with mobile transactions increasing to 37% of total Adobe Analytics transactions.

There is opportunity for cross-sell, argues Narayen:

I think there are two areas where we see the most traction. The first area where we see traction is where people are now adopting the Creative Cloud and doing all of the asset management within the Marketing Cloud, Adobe Experience Manager, asset management solution so that’s one area where we see traction.

The second area where we see traction is certainly in the area of people wanting to use the same workflow for both delivering mobile applications using PhoneGap Enterprise as well as DPS which is the Digital Publishing Suite option.

And last but certainly not the least there is no question that when we look at the new deals that we are having we are selling to the C-suite. We are selling the combination of the entire content LiveCycle. And while there maybe specialist sales force that are selling one solution or the other, the number of quarter backs that we have in these large accounts selling the entire Adobe story is certainly drawing.

My Take

Nice numbers with Adobe continuing to execute against strategy and making Wall Street happy on the way.

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