Adobe 2013 Annual Report Download - page 13

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13
of their business, extending from their use of our Creative Cloud, to how they manage, deliver, measure and monetize their content
with our Adobe Marketing Cloud.
Print and Publishing
Our Print and Publishing product offerings face competition from large-scale electronic and web publishing systems, XML-
based publishing companies as well as lower-end desktop publishing products. Depending on the product line, competition is
based on a number of factors, including: the quality and features of products, ease-of-use, printer service support, the level of
customization and integration with other publishing system components, the number of hardware platforms supported, service
and price. We believe we can successfully compete based upon the quality and features of our products, our strong brand among
users, the widespread adoption of our products among printer service bureaus, and our extensive application programming interface.
In printing technologies, we believe the principal competitive factors for OEMs in selecting a page description language
or a printing technology are product capabilities, market leadership, reliability, price, support and engineering development
assistance. We believe that our competitive advantages include our technology competency, OEM customer relationships and our
intellectual property portfolio.
OPERATIONS
Marketing and Sales
We market and license our products directly using our sales force and through our own website at www.adobe.com. We
also market and distribute our products through sales channels, which include distributors, retailers, software developers, systems
integrators, ISVs and VARs, as well as through OEM and hardware bundle customers.
We support our end users through local field offices and our worldwide distribution network, which includes locations in
Australia, Austria, Belgium, Brazil, Canada, China, Czech Republic, Denmark, Dubai, Finland, France, Germany, India, Ireland,
Italy, Japan, Korea, Mexico, Moldova, the Netherlands, Norway, Poland, Portugal, Romania, Russia, Singapore, South Africa,
Spain, Sweden, Switzerland, Taiwan, Turkey, Ukraine, the United Arab Emirates, the United Kingdom and the United States.
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 and 2011. For fiscal 2013,
there were no customers that represented at least 10% of net revenue. Revenue from Ingram Micro has declined as a percentage
of net revenue due to an increase in direct sales made through our own sales force as well as adobe.com.
2012 2011
Ingram Micro 11% 14%
Ingram Micro is a distributor who sells products across our various segments. 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 2013 and 2012, no single customer was responsible for over 10% of our 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 product delivery operations organization. We outsource
our procurement, 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.
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.
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