Adobe Customers Embrace SaaS Model More Quickly Than Expected

Included in Adobe's most recent quarterly report was some good news for the software development industry: The company reported “overachievement” of its goals for transitioning from traditional software sales to a software as a service model. That's a positive development, CFO Mark Garrett explained, because “As Adobe customers migrate from a legacy Creative Suite perpetual licensing model to new Creative Cloud subscriptions, revenue is recognized over time as opposed to at the time of purchase.” So far, Adobe has “effectively transitioned approximately $29 million more perpetual revenue than expected to Creative Cloud,” which will “will drive higher long-term growth and create a large recurring revenue stream.”

Other software firms may be looking to Adobe's example as they transition towards cloud computing.

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