Adobe 2009 Annual Report Download - page 27

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27
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
customers.
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
product.
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
process management.
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
IBM.
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.