Adobe 2012 Annual Report Download - page 34

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34
We also license software with maintenance and support, which includes rights to upgrades, when and if available, support,
updates and enhancements.
The table below lists our significant customer, as a percentage of net revenue for fiscal 2012, 2011 and 2010. Our significant
customer is a distributor who sells products across our various segments.
2012 2011 2010
Ingram Micro 11% 14% 15%
We have multiple non-exclusive, independently negotiated distribution agreements with Ingram Micro and its subsidiaries
covering our arrangements in specified countries and regions. Each of these contracts has an independent duration, is independent
of any other agreement (such as a master distribution agreement) and any termination of one agreement does not affect the status
of any of the other agreements.
In fiscal 2012, no single customer was responsible for over 10% of our gross trade receivables. In fiscal 2011, Ingram Micro,
Inc. represented 14% of our gross trade receivables.
Order Fulfillment for Physical Distribution
The procurement of the various components of packaged products, including DVDs and printed materials, and the assembly
of packages for retail and other applications products is controlled by our supply chain operations organization. We outsource our
production, inventory and fulfillment activities to third parties in the United States, EMEA and APAC.
To date, we have not experienced significant difficulties in obtaining raw materials for the manufacture of our products or
in the replication of DVDs, printing and assembly of components.
Shippable backlog is comprised of unfulfilled orders, excluding those associated with new product releases, those pending
credit review and those not shipped due to the application of our global inventory policy. We had minimal shippable backlog as
of January 18, 2013 and January 20, 2012.
Services and Support
We provide professional services, technical support and customer service across all our customer segments, including
enterprises, small/medium businesses, creative professionals, and consumers. Our service and support revenue consists primarily
of consulting fees, software maintenance and support fees and training fees.
Services
We have a global professional services team dedicated to designing, developing and implementing solutions for enterprise
customers in key vertical markets and to transfer technical expertise to our solution partners. The professional services team uses
a comprehensive, customer-focused methodology to develop high quality solutions, which in turn deliver a competitive advantage
to our enterprise customers. This methodology has been developed by capturing best practices from numerous client engagements
across a diverse mix of solutions, industries, and customer preferences. Based on this methodology, our teams are able to accelerate
the time to value and maximize the return our clients earn on their investment in Adobe solutions.
In addition, Adobe has also created a large and vibrant partner ecosystem that includes a mix of Global System Integrators
(“SIs”), Regional SIs, VARs, and Solution Partners. Adobe invests significant resources in enabling this ecosystem with the right
skills and knowledge about our technologies and best practices. Consequently, this ecosystem provides our clients several different
choices of partners, and a large accessible pool of skilled resources that can help deploy Adobe solutions. This approach not only
creates value for our customers and partners, but also creates a large and productive go-to-market channel for our sales teams.
Support
A significant portion of our support revenue is composed of our extended enterprise maintenance and support offerings.
These offerings entitle customers to:
• the right to receive product upgrades and enhancements during the term of the maintenance and support period, which
is typically one year;
• the right to receive technical support on the technology they have purchased from Adobe; and
• the right to receive basic “how to” help in using our products.
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