Adobe 2010 Annual Report Download - page 30

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browser developers, and the potential for inconsistency in how each major browser implements HTML5 will create a
continuing demand for solutions such as those offered by our Flash technologies that provide a consistent presentation
capability that works across browsers, operating systems and devices. We also believe that Flash based content and tooling
have a significant technology lead over anything trying to replicate its feature sets, particularly in market areas like online
gaming, Web applications and RIAs, 3D-based content, and premium online video delivery, advertising and security.
We believe demand for authoring new HTML5 features will intensify the competition in the professional Web page
layout market. We also believe the potential fragmentation of HTML5 implementations by the various browser
manufacturers that compete with each other will create the need for tool improvements to address the disparities between
platforms and devices that could result. Our Dreamweaver product and our CS Live BrowserLab service are uniquely
positioned to assist customers with migrating to new versions of standards such as HTML5, as well as delivering the means
to create rich, interactive experiences on devices and screens of all sizes.
As customers such as publishers and media companies increase their desire to deliver their assets to new platforms such
as mobile devices and tablets, we expect new and existing companies to offer solutions that address these challenges which
are competitive with our Digital Publishing Suite. Many design agencies are building capabilities to offer such solutions, and
companies such as Texterity offer an alternative format and business model for the delivery of newspaper and magazine
content to mobile devices.
We believe RIAs will make use of both open source Ajax frameworks and the open source Flex framework to create
hybrid RIAs in the browser, and we anticipate increased adoption of AIR as a development platform for Ajax developers.
With our FMS solution, we face competition from Microsoft with their Windows Media Server for Windows Media and
Silverlight, as well as Apple, Move Networks, Real Networks, Wowza Media Systems and others.
Our tools used to create applications for PCs and mobile devices such as smartphones and tablets are influenced by
evolving industry standards, rapid software and hardware technology developments and frequent new product and technology
introductions by companies or open-source initiatives targeting similar opportunities. Technologies and products which
compete with our tools for creating mobile applications include solutions which utilize Java, Brew, Scalable Vector Graphics
and Wireless Application Protocol. On Apple devices running the iOS operating system, on devices running Microsoft
operating systems and on devices running the Google Android operating system, developers can choose to use native
development environments for those platforms. They can also utilize other developer solutions which can be compiled to run
on such devices, including those from companies such as appcelerator, Phonegap, Unity3D and Corona.
With respect to Apple mobile devices such as the iPhone and iPad, although our desire is to work closely with Apple to
deliver Adobe Flash Player for accessing browser-based SWF content on their devices similar to our approach with other
mobile vendors, we are restricted from making advancements towards this goal until we have Apple’ s cooperation to do so.
We do not believe we have experienced a negative impact to our revenue because of this exclusion due to the broad uses of
our creative and developer tools to create content and applications in a variety of formats for PC, mobile and other devices—
including Apple mobile devices.
We believe our robust programming model and developer tools used to create rich content, our large developer
community and ecosystem which utilize our tools and the growth of companies who utilize Flash and AIR as a basis for rich
content and application delivery across multiple screens are key assets in our ability to effectively compete in this market.
Further, the rich expressiveness of Flash which provides the capability to deliver audio, video, motion graphics, vector
graphics and visual effects resulting in rich user experiences and interfaces on mobile devices, is a key differentiation when
compared to the capabilities of alternate solutions.
Digital Media Solutions
The needs of digital imaging and video editing software users are constantly evolving due to rapid technology and
hardware advancements in digital cameras, digital video cameras, printers, personal computers, tablets, mobile phones and
other new devices. Our software offerings, including Adobe Photoshop, Adobe Photoshop Lightroom, Adobe Photoshop
Elements, Adobe After Effects, Adobe Audition, Adobe Soundbooth, Adobe Encore, Adobe Premiere Elements and Adobe
Premiere Pro, face competition from companies offering similar products. We also continue to face competition from new
and free products, including online based Web services and mobile/tablet applications which compete directly with our
Photoshop Express mobile application offering.
In professional digital imaging, software applications and services compete based on product features, brand awareness
and price sensitivity. In addition to competition with Apple’ s Aperture product and Microsoft’ s Expression Design product,
our Adobe Photoshop and Adobe Photoshop Lightroom products face direct and indirect competition from a number of