Adobe 2010 Annual Report Download - page 18

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measure, optimize and target experiences for superior business results—across both new and traditional communication
channels and devices.
We believe significant opportunities exist to help enterprises address these issues by making their business processes
more efficient, their Web applications more engaging, agile, and measurable and giving executives the ability to manage
these experiences through tools like dashboards. We also believe forward-thinking enterprises are actively investing in
disruptive processes to engage more meaningfully with customers, and the employees and partners who serve them.
Enterprises want to leverage these dynamic human interactions to create a more effective customer interaction model which
accelerates customer acquisition and retention.
Our offering leverages a unified developer experience for creating applications that help organizations quickly assemble
more secure, feature-rich user experiences. We also utilize Adobe Flash and Adobe PDF technologies to improve user
engagement via the cross-platform Adobe Reader and Adobe Flash Player software installed on over 98% of Internet-enabled
PCs worldwide.
With our platform, organizations can choose the appropriate combinations of standards-based user interface
technologies, including Flash, PDF, AIR, XML, HTML and Ajax, to most effectively engage their users, drive flexibility,
and reduce custom implementations and vendor lock-in. Our multi-platform, multi-format approach enables customers to
deliver CEM solutions that allow for interaction by their constituents on any Internet-connected device, including
smartphones, tablets and other non-PC devices.
To improve their collaboration and communication capabilities, we believe enterprises will increasingly utilize real-time
communication to improve how they train, market, sell and support their products and solutions to their customers. For this
reason, we include our Adobe Connect product line as part of our CEM offerings.
Adobe Connect provides capabilities for live Web conferencing, as well as delivering on-demand rich presentations
through an on-premise server or as a hosted service and recorded. Web conferencing services are provided via the ubiquitous
Adobe Flash Player client on PCs, as well as through smartphone and tablet device applications running natively on operating
systems such as Apple iOS and Google Android. By offering Web conferencing services as part of our enterprise family of
products, we believe we can extend adoption of Web conferencing to a broader potential market and grow the use of such
technology with an easy-to-adopt business model.
We believe customers adopting our CEM solutions will increasingly need more capabilities to address how they manage
and deliver their content. The importance of managing online, mobile and social channels as a means to deliver content and
measure its business impact is also growing, as is the desire to utilize a completely integrated offering and workflow from
one software vendor rather than several.
To strengthen our enterprise software solution portfolio, in October, 2010 we completed our acquisition of Day Software
Holding AG (“Day”), a leading provider of WCM, digital asset management and social collaboration offerings. We believe
Day’s leading WCM solutions combined with Adobe’s existing portfolio form the most powerful offering for CEM on the
market today. With it, we can help customers better integrate their global Web presence and business applications, unlocking
value across their marketing, sales, and service processes.
Although our solutions address the needs of a diverse set of enterprise customers, we focus primarily on two key vertical
industries: financial services and government. We also target vertical markets such as media and entertainment,
manufacturing, telecommunications and healthcare. For all these customers, we offer comprehensive, scalable, secure and
reliable server products and tools to develop applications tailored to their specific information and business process
requirements. By industry, we also offer Solution Accelerator applications which enable customers in those industries to
rapidly build prototype and pilot applications which can bootstrap their development efforts and help them achieve quicker
time-to-market deployment as well as better return on investment (“ROI”).
Enterprise Business Summary
In fiscal 2010, as macro-economic conditions improved and our enterprise go-to-market efforts matured, we achieved
strong year-over-year revenue growth in our Enterprise business. This growth was driven by increased adoption of our Adobe
LiveCycle and Adobe Connect products during the year. We believe this success is due to the increased capabilities and
robustness of our product offering, to the investments we have made in our direct sales force during the past several years, as
well as industry analysts and enterprise customers placing more emphasis on CEM solutions as an area for investment in
businesses.