Adobe 2011 Annual Report Download - page 7

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During the year, continued adoption of our Creative Suite products has also contributed to broader adoption of Acrobat in
the creative professional market. Acrobat Pro is included in four of the five Creative Suite editions and utilization of Acrobat
prepress, printing and collaboration functionality is a critical component of creative customer workflows. As such, adoption of
Acrobat through the Creative Suite family of products has resulted in a material amount of Acrobat revenue being reported in our
Creative Solutions Segment during the year.
In the summer of 2011, we announced the acquisition of EchoSign, a provider of on-demand, web-based, electronic signature
solutions. The addition of EchoSign, combined with the release of our Adobe FormsCentral solution and Export PDF, enables us
to increase the value of document exchange services that we offer to our knowledge worker customers and thus increase the
potential addressable market for our knowledge worker offerings.
Enterprise Fiscal 2011 Business Summary
In fiscal 2011, we achieved strong year-over-year revenue growth in our Enterprise business. This performance was driven
primarily by the addition and increased adoption of our CQ5 Web Experience Management (“WEM”) solution, which we acquired
with our acquisition of Day Software Holding AG ("Day") in the fourth quarter of fiscal 2010. Our market-leading WEM solution
combines web content management, digital asset management and social collaboration offerings, and enabled our sales force to
target organizations that need to transform their websites by enabling them to create, manage, distribute, and monetize content
while optimizing the web, mobile, and social collaboration experience for their customers.
Adoption of our Adobe LiveCycle and Adobe Connect products slowed during the year when compared to prior years as
we increasingly shifted our focus to marketing the benefits of our WEM solution to targeted enterprise customers. In November
2011, we announced a realignment of our business priorities which resulted in an increased focus on the Digital Media and Digital
Marketing opportunities as we entered fiscal 2012. The core of our digital marketing offering is the combination of our Omniture
and Day product lines, and with this business shift, we announced we are focusing our future go-to-market efforts for LiveCycle
and Connect on government and financial services markets while scaling back significantly on other targeted markets. For Connect,
we will continue to aggressively leverage and sell through our go-to-market partners.
Omniture Fiscal 2011 Business Summary
Our Omniture product family processes over one trillion transactions per quarter in a hosted environment for thousands of
customers around the world. As we have broadened our investment and go-to-market capabilities with our Omniture products, we
have increased our bookings and revenue while maintaining high customer retention rates for our enterprise customers. In fiscal
2011, Omniture revenue grew when compared to fiscal 2010.
Our flagship Omniture product, Adobe SiteCatalyst, anchors our analytics business and represented approximately 50% of
Omniture revenue reported for fiscal 2011. The percentage of revenue beyond analytics represented by additional types of services
which are part of our Digital Marketing Suite has been increasing. Revenue from these additional services, which include
Test&Target, Scene7 and new services such as Adobe SocialAnalytics that was launched in the second quarter of fiscal 2011, and
the acquisition of Demdex for data management, grew steadily in fiscal 2011, resulting in larger engagements and transactions
with our customers. As a result, we increased the number of customers that spend more than $500,000 on an annual basis by more
than 25% as compared to fiscal 2010.
In March 2011, we began to integrate our Omniture products with our newly acquired Day offering for WEM. Customer
interest in a combined offering of Omniture plus Day increased throughout the year, resulting in our decision to substantially grow
our investment in the digital marketing market area. As previously discussed, our unique value proposition and successful customer
proof points during the year with this combined offering resulted in our decision to focus on the large digital marketing opportunity.
This is further discussed in the "Digital Marketing Opportunity" section.
Print and Publishing Fiscal 2011 Business Summary
In fiscal 2011, we maintained a consistent quarterly revenue run-rate with the mature products we market and license in
our Print and Publishing business. During the year we delivered version 3 of our Technical Communication Suite, which is a set
of tools for technical publishing, and version 2.5 of our eLearning Suite, which is a complete set of tools for creating professional
eLearning courseware.
Graphics professionals and professional publishers continue to require quality, reliability and efficiency in production
printing, and we believe our Adobe PostScript and Adobe PDF printing technologies provide advanced functionality to meet the
sophisticated requirements of this marketplace. As high-end printing systems evolve and transition to fully digital, composite
workflows, we believe we are uniquely positioned to be a supplier of software and technology based on the PostScript and Adobe
PDF standards for use by this industry. We generate revenue by licensing our technology to OEMs that manufacture workflow
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