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Jokes aside, it makes perfect sense for both of them. Adobe's CS and Microsoft Office are naturally self-complementing desktop giants. Both companies make a ton
by old-gregg 16y ago
Jokes aside, it makes perfect sense for both of them. Adobe's CS and Microsoft Office are naturally self-complementing desktop giants. Both companies make a ton of money selling desktop software to the enterprise, yet outside of Flash/Sliverlight battle they don't cross each other paths.
I, for one, welcome this development. It brings some hopes for better performing Flash, which I hate with a passion but its a fact of life. Flash is in need of some engineering muscle. There are many things Microsoft can possibly do to it and most of them are good, see: kill it -> good, open source it -> good, merge with silverlight -> good.
Same thing with other Adobe products: they used to be best in class some time ago, but I'm convinced that company cannot code anymore, but Microsoft still can.
No way this is bad news. The worse that can happen is nothing changes.
Edit: also, lets stop this nonsense with applying "still somewhat profitable" and "dying" to these companies. Both are doing great financially. Adobe's profits from CS keep breaking records - look at http://www.adobe.com/aboutadobe/pressroom/pressreleases/201006/Q210Earnings.html http://www.adobe.com/aboutadobe/pressroom/pressreleases/2010...
- pchristensen 16y agoNot disagreeing, but Innovators Dilemma theory says that companies that are about to be disrupted are enjoying the greatest profits and margins ever. The problem is that the reason the profits are so high is that they've shed their less profitable divisions and products that might grow into the next big innovation. Let's say something disrupts MSFTs Office and shrinks its revenue - what do they have that could replace that?
- iamelgringo 16y agowhat do they have that could replace that? Sharepoint, SQLServer, Windows 7, Windows Server, Windows Virtual Server, CRM, Exchange Server, XBox, Xbox live, Bing, Zune, Microsoft Automotive platform, Win 7 phone. Microsoft has one of the most diverse revenue streams of any software company. They're going to be around for a while. Google should actually be more afraid of disruptive technologies. Their revenue is primarily from advertising. They are truly a single revenue source company.
- chime 16y agoAlso the entire Dynamics series. Web people don't understand the ERP world and the profits that come from annual maintenance plans. What is Dynamics? It's what runs the internal systems for most small/mid-sized businesses that can't afford Oracle/SAP. It's a HUGE market.
- Shamiq 16y agoI'll also chime in and support Dynamics. It's an amazing market with a ton of actual growth potential.
- bluesnowmonkey 16y agoAzure...
- jballanc 16y agoMicrosoft is no slouch (especially compared to Google), but these charts seem to imply that Apple still has the more diverse revenue stream: http://www.businessinsider.com/chart-of-the-day-microsoft-operating-income-by-division-2010-2 http://www.businessinsider.com/chart-of-the-day-microsoft-op... http://www.businessinsider.com/chart-of-the-day-in-case-you-had-any-doubts-about-where-apples-revenue-comes-from-2010-4 http://www.businessinsider.com/chart-of-the-day-in-case-you-...
- Tamerlin 16y agoApple's also not really a software company. Still, even if you ONLY look at Apple's software revenues, I suspect that Apple would turn out to be more diversified than Google. :)
- ChRoss 16y agoThe development suites: Visual Studio, plus those all CAL licensing fee.
- jmulho 16y agoI agree. Microsoft shouldn't be concerned about the fact that no one likes their products because they make so many different products that no one likes.
- _delirium 16y agoIt's quite possible for it to take a long time, though. Microsoft has been more or less in the position you describe for ~15 years: by the mid-1990s they were making huge profits, almost entirely from Windows+Office. Now, 15 years later, they've still got large profit margins on that same duo.
- protomyth 16y agoAdobe sells a lot of enterprise document software that could really boost Microsoft's Share Point properties. I really do think all product development for Linux or Android would be cancelled (Flash for Windows Phone 7 only).
- watty 16y agoMicrosoft isn't stupid. They won't make Flash Windows only and they won't make Flash Windows Phone 7 only.
- dinkumthinkum 16y agoBut continued Linux support is clearly a possible cancellation.
- isyourfriend 16y agoI disagree they took over datadirect jdbc and support it for both linux and windows!
- mfukar 16y agoI don't think so. Both Adobe and Microsoft benefit from the existence of (and their coexistence with) Linux.
- protomyth 16y agoI would really need to see some examples of that. Adobe doesn't deal well with Linux (or anything non-Windows) and Microsoft would make more money with Linux around.
- dinkumthinkum 16y agoPerhaps you think that but I don't think they are or their shareholders see it that way. Microsoft tends to only deal with Linux or the open source world in an effort to avoid criticism. In fact, that's just too ironic of a statement and I think needs a little justification.
- joe_the_user 16y ago"it makes perfect sense for both of them..." "I, for one, welcome..." Uh, yeah... I agree it makes perfect sense for both of them. For anyone who isn't Microsoft or Adobe, the prospect seems less appealing. Two companies with considerable monopolistic sway in their respective markets come together to improve their profit margins? Merging two huge globs that each can extract rent on their various properties into a single similar vast glob. What could possibly go wrong...
- rbanffy 16y ago> What could possibly go wrong. The combined corporate mass would exceed the Tolman–Oppenheimer–Volkoff limit and they would collapse into a black hole?
- joe_the_user 16y agoIn the case of Microsoft, one might argue that has already happened...
- rbanffy 16y agoYes, but the extra mass could shorten the process...
- lukestevens 16y agoBut how does this counter Apple in mobile? That's what I don't get -- buy Adobe for Flash because, err, that'll hurt Apple somehow? If they just want Flash, I bet they're bummed they didn't buy Macromedia a few years ago.
- metageek 16y agoMaybe pouring more resources into making Flash run well on all other devices, leaving the iPhone in the cold.
- suhair 16y ago"yet outside of Flash/Sliverlight battle they don't cross each other paths" - what about Microsoft's Expression Studio and similar Adobe products?
- Tyrannosaurs 16y agoTechnically they cross but only in the way MS Office crosses paths with Apple's iWork - that is one utterly runs the other one down. Hardly anyone is paying for Expression Studio in the way they are for Adobe CS. The people using it are doing so because it was bundled.
- gmac 16y agoonly in the way MS Office crosses paths with Apple's iWork - that is one utterly runs the other one down Which runs which down? For my requirements, Keynote > PowerPoint, Excel > Numbers, Pages ~= Word.
- Tyrannosaurs 16y agoThat may be so but based on sales most people who choose to part with cash pick Office as with Adobe CS over Expressions Studio.