The demand for Web page layout and Web content creation tools is constantly evolving and highly volatile. In addition
to competition with Microsoft’s Expression Blend and Web products, we believe Adobe Dreamweaver and Adobe Flash
Professional face direct and indirect competition from desktop software companies such as Bare Bones Software and various
proprietary and open source Web authoring tools. We also face competition from Ajax and Microsoft Visual Studio products,
and other integrated development environments that enable developers to create Web applications from companies such as
BEA Systems (a subsidiary of Oracle), Borland and IBM. We believe our products compare favorably to these applications;
however, our market share may be constrained by Microsoft’s ability to target its Web software to users in markets it
dominates. These target customers include users of Microsoft Office, Microsoft Windows operating system, the Microsoft
Internet Explorer Web browser and Microsoft Visual Studio.
The needs of digital imaging and video editing software users are constantly evolving due to rapid technology and
hardware advancements in digital cameras, digital video cameras, printers, personal computers, cellular phones and other new
devices. Our software offerings, including Adobe Photoshop, Adobe Photoshop Extended, Adobe Photoshop Elements,
Adobe Photoshop Lightroom, Adobe After Effects, Adobe Audition, Adobe Soundbooth, Adobe Encore, Adobe Premiere
Elements and Adobe Premiere Pro, face competition from companies offering similar products. We also continue to face
competition from new emerging products, including online based services which compete directly with our Photoshop.com
offering, as well as any new competitive products coming from the open source movement.
Our other digital imaging and video editing offerings, including Adobe Photoshop Elements and Adobe Premiere
Elements, are subject to intense competition, including customer price sensitivity, competitor brand awareness and
competitor strength in OEM bundling and retail distribution. We face direct and indirect competition from a number of
companies that market software which competes with ours, including ACD Systems, AI Soft (Japan), Apple, ArcSoft, Corel,
i4 (Japan), Google, Kodak, Nova Development, Magix, Microsoft, Phase One, Photodex Corporation, Sonic, Pinnacle, Sony
and Yahoo. In addition, we face competition from device, hardware and camera manufacturers such as Apple, Canon, Dell,
Hewlett-Packard, Nikon, Sony and others as they try to differentiate their offerings by bundling, for free, their own digital
imaging software, or those of our competitors. Similarly, we face potential competition from operating system manufacturers
such as Apple and Microsoft as they integrate hobbyist-level digital imaging and image management features into their
operating systems. Finally, we face potential competition from open source products, including Gimp for Linux.
We believe we compete favorably against other digital imaging, digital video and consumer-focused image management
software applications with our Adobe Photoshop Elements and Adobe Premiere Elements products due to strong consumer
awareness of our brand in digital imaging and digital video, our relationships with significant OEMs, positive
recommendations for our products by market influencers, our increased focus on the retail software channel and strong
In professional digital imaging, software applications compete based on product features, brand awareness and price
sensitivity. In addition to competition with Apple’s Aperture product and Microsoft’s Expression Design product, our Adobe
Photoshop and Adobe Photoshop Lightroom products face direct and indirect competition from a number of companies
including Corel. Our Adobe Photoshop products compete favorably due to high customer awareness of the Photoshop brand
in digital imaging, the positive recommendations for our Photoshop product by market influencers, the features and technical
capabilities of the product and our ability to leverage core features from our other established products.
Our Adobe InDesign product, used for professional page layout, faces significant competition. The main competitor,
Quark, has a competitive product, Quark XPress, which has maintained a historically strong market share in the professional
page layout market. Quark also benefits from an established industry infrastructure that has been built around the use of their
XPress product in print shops and service bureaus, and through the development of third-party plug-in products. Barriers to
the adoption of Adobe InDesign by Quark XPress customers include this infrastructure, as well as the cost of conversion,
training and software/hardware procurement required to switch to InDesign. We have seen an increase in the adoption of
InDesign software and we believe we will continue to see market share gains going forward due to a product offering that
contains new innovative features, improved integration with our other products, our strong brand among users, positive
reviews by industry experts, adoption of InDesign by major accounts which are influencers in their industries and improved
infrastructure support by the industry for our overall solution.
Applications for digital video editing, motion graphics, special effects, audio creation and DVD authoring face
increasing competition as video professionals and hobbyists migrate away from analog video and audio tools towards the use
of digital camcorders and digital video production on their computers and DVD systems for rich media playback. Our Adobe
After Effects, Adobe Audition, Adobe Encore, Adobe Premiere Pro and Adobe Soundbooth software products, as well as the
Adobe Production Studio which contains these products, face competition from companies such as Apple, Avid, Canopus,
Sonic and Sony. Our Adobe Premiere Elements software product which is targeted for use by hobbyists, faces competition
from companies such as Aist, Apple, ArcSoft, Avid, Broderbund, Corel, Cyberlink, Magix, Microsoft, Muvee and Sony – as
well as video editing capabilities found in operating systems and other video editing solutions bundled by video camcorder
manufacturers with their hardware offerings.
Adobe After Effects is a leader in professional compositing and visual effects due to its strong feature set and its
integration with our other products that helps create a broad video editing platform for our customers. In professional digital
video editing, we are an industry leader with Adobe Premiere Pro and compete favorably due to our strong feature set, our
OEM relationships and the integration with our other products to create a broad digital video publishing platform for our
Business Productivity Solutions
With our Adobe Acrobat business, we continue to face competition from Microsoft. Their Windows operating system
includes a proprietary digital rights management technology and a document format, called XML Paper Specification
(“XPS”), which competes with Adobe PDF. In addition, Microsoft’s widely used Office product offers a feature to save
Microsoft Office documents as PDF documents. This PDF feature in Office competes with Adobe Acrobat. Given
Microsoft’s market dominance, XPS, the PDF feature in Office and any other competitive Microsoft product or technology
that is bundled as part of its Office product or operating system or made freely available, could harm our overall Adobe
Acrobat market opportunity.
Our Adobe Acrobat product family also faces competition in the PDF file creation market from many clone products
marketed by companies such as AdLib, Active PDF, Apple, Global Graphics, Nuance, Software995, Sourcenext and others.
In addition, other PDF creation solutions can be found at a low cost, or for free, on the Web.
For customers that use Adobe Acrobat as part of document collaboration and document process management solutions,
where electronic document delivery, exchange, collaboration, security and archival needs exist, our Acrobat product family
faces competition from entrenched office applications such as Microsoft Office and its integration with their SharePoint
product. In the higher end of the electronic document market, Acrobat Pro and Acrobat Pro Extended provide features which
compete with other creative professional PDF tool providers, such as Enfocus, Dalim and Zinio. In addition, we are targeting
the architecture, engineering and construction electronic document collaboration market with our Acrobat Pro Extended
To address the threats from Microsoft and others, we are working to ensure our Adobe Acrobat applications stay at the
forefront of innovation in emerging opportunities such as PDF document generation, document collaboration and document
Our Web conferencing solution, Adobe Acrobat Connect Pro, faces competition from many Web conferencing vendors,
including Cisco WebEx, Microsoft Office Live Meeting, IBM Lotus Sametime and Citrix GoToMeeting. Cisco WebEx is a
market share leader and Microsoft has steadily increased its marketing of Microsoft Office Live Meeting. To address these
and other smaller competitors in the Web conferencing space, we focus on providing a differentiated and enhanced user
experience through our Adobe Flash Player.
The markets we address with our Adobe LiveCycle Enterprise Suite are influenced by evolving industry standards, rapid
software and hardware technology developments, and new product introductions from competitors such as Microsoft and
Microsoft has already brought to market new products and technologies to address many of the emerging market needs
we focus on with our Adobe LiveCycle family of products. Microsoft continues to offer its eForms solution called InfoPath
in certain versions of Microsoft Office and has added Office Forms Services which extends their forms to users as MS
Outlook e-mail messages or to Web browsers rather than the InfoPath client. They also continue to offer their Windows
Rights Management Services in their Windows Server product which is designed to allow corporate networks to manage and
enforce restrictions built into documents.
As discussed previously, Microsoft markets Windows and Office which include a document format called XPS which
competes with Adobe PDF. Certain Windows operating systems also contains a proprietary digital rights management
technology which competes with Adobe LiveCycle Rights Management ES. In addition, Microsoft’s most recent version of
Office includes an updated version of its SharePoint product which competes with certain aspects of our Adobe LiveCycle
products. Microsoft has also recently delivered technology called Windows Presentation Foundation and Silverlight which
offers an alternative to building RIA applications within the Microsoft .NET framework.
In the electronic forms solution market, in addition to competition from Microsoft Infopath based solutions, we face
competition from IBM through their eForms solution recently rebranded as Lotus Workplace Forms. Similarly, we face
competition for document process management solutions from workflow solution vendors such as PegaSystems, Lombardi,
Nuance and Ultimus.
We believe that our Adobe LiveCycle server product family competes favorably against these companies and formats in
terms of the combined benefits of superior functionality, cross-platform visual page fidelity/reliability, multi-platform
capability, file compression, printing and security of documents expressed using Adobe PDF. We also believe that Adobe
PDF and its integration with XML, combined with the broad distribution of Adobe Reader on all leading hardware platforms,
provide a universal multi-platform solution that is more compelling than our competitors’ offerings.
In our Omniture segment, we compete primarily with Web analytics and business optimization vendors whose software
is provided on demand to customers, generally through a Web browser. We also compete to a limited extent with vendors
whose software is installed by customers directly on their servers. In addition, we compete at times with our customers’ or
potential customers’ internally developed applications.
Our current principal competitors include companies such as Coremetrics, Google, Microsoft, Nedstat, Yahoo! and
WebTrends that offer on-demand services. We also compete with software vendors, such as Infor (which owns Epiphany),
Nielsen/NetRatings, a part of the Nielsen Online Unit of the Nielsen Company, Unica Corporation (which acquired Sane
Solutions) and SAS Institute. In addition, we also compete with online marketing service providers, such as Microsoft
Advertising (formerly aQuantive when acquired by Microsoft), DoubleClick (owned by Google) and 24/7 Real Media
(acquired by WPP).
Our Omniture Test&Target products also compete with multivariate testing providers, such as Optimost (owned by
Autonomy), Memetrics (acquired by Accenture), Kefta (acquired by Acxiom Digital) and [x + 1]. Our Omniture SiteSearch
products compete with intra-site search vendors, such as Autonomy, Endeca Technologies, FAST Search and Transfer ASA
(acquired by Microsoft) and Google. Our Omniture Merchandising product competes with merchandising solutions
providers such as Endeca (ThanxMedia), Celebros, SLI Systems, Nextopia Software and Fredhopper. Our Omniture InSight
products compete with channel analytics providers, such as Truviso, Clickfox, Qliktech and AsterData. Our Omniture
Recommendations product competes with product recommendations providers, such as Aggregate Knowledge, Baynote,
Certona, Rich Relevance and Amadesa. Finally, our Omniture Survey product competes with survey providers such as
OpinionLab, iPerceptions and Foresee Results.
Many of the companies that offer Web analytics software offer other products or services and as a result could also
bundle their products or services, which may result in these companies effectively selling their products or services at or
below market prices.
In addition, large software, Internet and database management companies may enter the market or enhance their Web
analytics capabilities, either by developing competing services or by acquiring existing competitors or strategic partners of
ours, and compete against us effectively as a result of their significant resources and preexisting relationships with our
current and potential customers. For example, Google offers a Web analytics service free of charge, and acquired
DoubleClick, one of our strategic partners, in 2008. Also, Microsoft offers a Web analytics service free of charge, and offers
Microsoft Advertising, which is based on their 2007 acquisition of aQuantive. In addition, Yahoo! also offers a Web
analytics service based on its acquisition of IndexTools.
We believe competitive factors in our markets include the proven performance, security, scalability, flexibility and
reliability of services; the strategic relationships and integration with third-party applications; the intuitiveness and visual
appeal of services’ user interfaces; the low total cost of ownership and demonstrable cost-effective benefits to customers; the
ability of services to provide N-dimensional segmentation of information; pricing; the flexibility and adaptability of services
to match changing business demands; enterprise-level customer service and training; perceived market leadership; the
usability of services, including services being easy to learn and remember, efficient and visually compelling; the real-time
availability of data and reporting; independence from portals and search engines; the ability to deploy the services globally
and to provide multi-currency, multi-language and multi-character support and to have a local presence in international
markets; and success in educating customers in how to utilize services effectively.
We believe that we compete favorably with our competitors on the basis of these factors. However, if we are not able to
compete successfully against our current and future competitors, it will be difficult to acquire and retain customers, and we
may experience revenue declines, reduced operating margins, loss of market share and diminished value in our services.
Our Adobe Flash Platform technologies, including Adobe Flash Player and Adobe AIR, face competition from
Microsoft Silverlight, as well as alternative approaches to building RIAs—including Google Gears and JavaFX. Our Adobe
ColdFusion product family and our Adobe Flash Builder developer tool products face competition from major vendors
including Microsoft, IBM, BEA (a subsidiary of Oracle) and Sun. Our ColdFusion products also compete with several
technologies available today at no cost including the PHP and PERL programming environments that are available for the
Apache Web server.
Beyond the competitive threats from Microsoft previously discussed, vendors such as Tibco, JackBe, Backbase and
NexaWeb offer potentially competitive solutions in the RIA market that we target with our open source Adobe Flex solution.
We also believe RIAs will make use of both open source Ajax frameworks and the open source Flex framework to create
hybrid RIAs in the browser, and we anticipate increased adoption of AIR as a development platform for Ajax developers.
With our FMS solution, we face competition from Microsoft with their Windows Media Server for Windows Media and
Silverlight, as well as Move Networks, Real Networks, Apple and others.
Version 5 of the Web markup language HTML (“HTML5”) is being developed by an industry consortium that includes
Adobe and leading browser manufacturers such as Apple, Google and Microsoft. HTML5 will contain new features which
will compete with some of the features of Flash Player, such as the ability to play video natively within the browser. We will
work to implement support for HTML5 in our Web authoring solutions. Yet, we believe the competing interests of the
browser developers, and the potential for inconsistency in how each major browser implements HTML5 will create a
continuing demand for solutions such as Flash that provide a consistent presentation capability that works across browsers,
operating systems and devices.
Our mobile and device solutions are influenced by evolving industry standards, rapid software and hardware technology
developments and frequent new product and technology introductions by companies or open-source initiatives targeting
similar opportunities. Technologies and products which compete with our Adobe Flash Platform clients and solutions include
Java, Brew, Scalable Vector Graphics, Wireless Application Protocol, Apple Mac OS utilized on the Apple iPhone,
Microsoft Windows Mobile, as well as solutions from the open source movement, vendors supplying clone versions of these
products and technologies and vendors which choose to exclude the use of our solutions and technologies on their devices.
With respect to the Apple iPhone, although our desire is to work closely with Apple to deliver Adobe Flash Platform
technologies on their device similar to our approach with other mobile vendors, we are prohibited from making
advancements towards this goal until we have Apple’s cooperation to do so.
We believe our Adobe Flash Platform solution competes favorably against these technologies and solutions due to the
distribution of Adobe Flash Player technology on a broad set of platforms, including PCs, mobile phones and consumer
electronic devices. We also believe our robust programming model and developer tools used to create video output for the
Flash Player, the large Flash developer community and ecosystem which utilize our tools, and the growth of companies who
have joined the OSP to utilize the Flash Platform as a basis for rich content and application delivery are key assets in our
ability to effectively compete in this market. Further, the rich expressiveness of Flash which provides the capability to
deliver audio, video, motion graphics, vector graphics and visual effects resulting in rich user experiences and interfaces on
mobile devices, is a key differentiation when compared to the capabilities of alternate solutions.
In the past year, the mobile industry experienced many announcements and introductions of new mobile devices and
platforms—and we expect innovation and new announcements such as those seen in 2009 to continue in 2010. We view these
ongoing developments from major mobile companies such as Google, Nokia, Palm, Rim and others as opportunities to
deploy our technologies and solutions. Just as we maintain a philosophy of cross-platform support in the personal computer
desktop world for operating systems such as Microsoft Windows, Apple Mac OS, Unix and Linux, we expect to continue to
enhance our support for a wide variety of mobile and consumer electronic platforms, and we intend to make our products and
services available on viable, new entrant platforms as well.
Print and Publishing
Our Print and Publishing product line targets many markets. In technical authoring and publishing, our Adobe
FrameMaker product faces competition from large-scale electronic publishing systems, XML-based publishing companies
such as PTC, as well as lower-end desktop publishing products such as Microsoft Word. Competition is based on the quality
and features of products, the level of customization and integration with other publishing system components, the number of
hardware platforms supported, service and price. We believe we can successfully compete based upon the quality and
features of the Adobe FrameMaker product and our extensive application programming interface.
In desktop publishing, our Adobe PageMaker product faces competition from other software products, including
Microsoft Publisher. Competition is based on the quality and features of products, ease-of-use, printer service support and
price. We believe we have a strong product and can successfully compete with these types of applications based upon the
quality and features of the Adobe PageMaker product, its strong brand among users and its widespread adoption among
printer service bureaus.
In printing technologies, we believe the principal competitive factors for OEMs in selecting a page description language
or a printing technology are product capabilities, market leadership, reliability, price, support and engineering development
assistance. We believe that our competitive advantages include our technology competency, OEM customer relationships and
our intellectual property portfolio. Adobe PostScript faces competition from Hewlett-Packard’s proprietary PCL page
description language and from developers of other page description languages based on the PostScript language standard,
including Global Graphics and Zoran. In addition, Microsoft’s XPS document format competes with Adobe PDF and our
Adobe PostScript technologies and solutions.
In the rapid eLearning authoring market, our Adobe Captivate product faces competition from general content
development tools such as Microsoft PowerPoint, screen recording tools such as Techsmith’s Camtasia and more advanced
eLearning and software simulation solutions such as Firefly, Lectora and Articulate. Competition in this market is based on
speed of development and completeness of the features of products, ease-of-use and price. We believe our product can
successfully compete based upon the strength of its broad range of features, its strong brand among users and its widespread
adoption among training developers.
In Web content management, our Adobe Contribute product faces competition from solutions that provide for the simple
creation of blogs and “Wikis,” as well as basic content publishing products such as Microsoft Word, Microsoft FrontPage,
Microsoft Notepad, basic HTML editors like ezHTMLArea and ekTron, content management tools like Microsoft SharePoint
and, large-scale Web content management systems from companies such as Interwoven, Vignette, IBM and Oracle.
Competition in this market is based on usability, quality and features of products, the level of customization and integration
with other Web content management components, the integration with Web design tools, the number of hardware platforms
supported, service and price. We believe we can successfully compete based upon the usability and price of Adobe
Contribute, its strong brand among users and integration with other Web content management components.
In multimedia content authoring, our Adobe Director product faces competition from a variety of multimedia content
authoring tools. Competition is based on the quality and features of products, ease-of-use and price. We believe we have a
strong product and can successfully compete based upon the quality and features of the Adobe Director product, its strong
brand among users, its widespread adoption among content developers and publishers and the widespread proliferation of the
In technical Web authoring and publishing, our Adobe RoboHelp product faces competition from large-scale Web
publishing systems, XML-based Web publishing companies, as well as lower-end publishing products such as Microsoft
Word. Competition is based on the quality and features of products, the level of customization and integration with other
publishing system components, service and price. We believe we can successfully compete based upon the quality and
features of the Adobe RoboHelp product.
Marketing and Sales
We market and distribute our products through sales channels, which include distributors, retailers, software developers,
systems integrators, ISVs and VARs, as well as through OEM and hardware bundle customers. We also market and license
our products directly using our sales force and through our own Website at www.adobe.com.
Documents you may be interested
Documents you may be interested