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Apple’s Lover- Adobe (1)

June 10, 2010

Does Adobe love Flash from its heart?

It is publicly known Adobe and Apple are in the war 1, 2, 3 , 4.  The lengthy Steven Jobs’s public letter made this war become official.  Instead of writing a lengthy letter to respond to Jobs’s letter, Adobe, a good at design company,  came up with a one page good looking advertisement.

The advertisement says: We Love Apple.

There are 15 ‘love’ words in the one page letter.

True, we need to love people, technology, and our world. But as a company, does Adobe love his competitor this much?

First, we need to discuss who possibly made this important decision to respond the hatred with a love. Adobe’s CEO Shantanu Narayen, born and grown up  in India, an immigrant to US.  In 1998, he joined in Apple, in 2007, he became the CEO of Adobe.  He knows Apple very well  by serving Apple on various senior positions. He knows Adobe’s true strength, well, maybe very well. He has done two major achievements in Adobe.

(1) Acquired Macromedia with 3.4 Billion dollars in 2005.

(2)  Acquired Omniture with 1.8 Billion dollars in 2009.

Prior to 2004, there are still many video players using Windows media player, Apples’ quick time, and real player. But, after 2004, the online video markets have been exploded. Youtube, Vimeo, CollegeHumor, and many more video sites have emerged. Adobe’s Flash player has become the number one in the market.

Flash’s real strength is its cross platform capability, and the stability on PC, most of Mac systems,and Linux systems. But, Flash’s success is not solely because of its technology, but also attributed to the explosive growth of online videos, the user demands.  Most importantly,

Flash was not invented by Adobe, it was acquired by Macromedia from a project called FutureSplash Animator. It is an adopted child.

The story then becomes clear. Adobe only started to own Flash as its own product since 2005.  Adobe has made money from Flash, in 2005, its revenue 1.966 Billion, in 2008, its revenue, 3.58 Billion, source.

Shantanu Narayen is a successful bossiness administrator, who has helped Adobe double its revenue since 2005. In face of this Apple and Adobe war, It is a time for him to think whether he really loves the adopted fortune-making-child from his heart.

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