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Shantanu Narayen

Adobe Systems to Focus on Web Software

Adobe Systems Inc. (ADBE) is pulling back from the packaged-software business and doubling down on delivering its popular design tools through an online service.The company--known for supplying software for illustrators, photographers and publishers--plans to issue future versions of its programs through a subscription-based service called Adobe Creative Cloud that it launched a year ago. Adobe does not plan future packaged versions beyond Creative Suite 6.0, its current set of design software, although it will continue to support that product.Adobe's decision is the latest sign of a gradual shift in business models in the software industry, as customers have become accustomed to outsourcing more technology operations to Internet-based services rather than installing and maintaining programs on their own computers. Customer benefits include possible savings on internal labor costs, while suppliers get benefits from a smoother flow of revenue rather than big swings when new products hit...

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