Adobe 2013 Annual Report Download - page 4

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4
digital media franchise, bringing together the art of creating and managing content with the science of measuring and optimizing
it, enabling our customers to achieve their optimal business outcomes.
We believe we are uniquely positioned to be a leader in both the Digital Media and Digital Marketing categories, where
our mission is to change the world through digital experiences. By integrating products from each of these two areas of Adobe’s
business, our customers are able to utilize a comprehensive suite of solutions and services that no other single entity in either
industry currently offers. In addition, our ability to deliver innovation and productivity improvements across customer workflows
involving the creation, management, delivery, measurement and optimization of rich and engaging content favorably positions
Adobe to benefit from strong secular market trends as our customers increasingly invest more in their abilities to engage their
constituents online.
SEGMENTS
Our business is organized into three reportable segments: Digital Marketing, Digital Media and Print and Publishing. These
segments provide Adobe’s senior management with a comprehensive financial view of our key businesses. Our segments are
aligned around the company’s two strategic growth opportunities described above, placing our Print and Publishing business in a
third segment that contains many of our mature products and solutions.
This overview provides an explanation of our market opportunities and a discussion of our strategies to address our market
opportunities in fiscal 2014 and beyond for each of our segments. See Note 18 of our Notes to Consolidated Financial Statements
for further segment information.
PRODUCTS AND SERVICES OVERVIEW
Digital Media
Digital Media Opportunity
Recent trends in digital communications, including ever increasing data speeds which enable greater usage by consumers
of mobile devices and tablets to access online content and services, continue to provide a significant market opportunity for Adobe
in digital media. Due to the increase in rich media consumed in digital environments and the rise of online social communities,
the demand for digital media tools and solutions to create engaging online experiences is higher than ever. We believe Adobe is
in a unique position to capitalize on this opportunity by delivering rapid innovation to increase our customer reach, deepen
engagement with communities and accelerate long-term revenue growth by focusing on a cloud-based model where our products
and solutions are licensed on a subscription basis.
The flagship of our Digital Media business is our Adobe Creative Cloud offering. Creative Cloud is a subscription service
that allows members to download and install the latest versions of our creative products such as Adobe Photoshop, Adobe Illustrator,
Adobe Dreamweaver and Adobe InDesign, as well as utilize other tools such as Adobe Acrobat and Adobe Photoshop Lightroom.
Creative Cloud members can also access online services to sync, store, and share files, participate in our Behance community of
more than 1.5 million creative professionals, publish and deliver digital content such as digital magazines to tablets via app stores,
develop mobile apps, and create and manage websites. Adobe is redefining the creative process with Creative Cloud, an integrated
cloud and application service where our creative customers can obtain everything they need to create, collaborate and deliver
engaging digital content.
The cornerstone of Creative Cloud is our creative family of products, which address the needs of creative professionals
including graphic designers, production artists, web designers and developers, user interface designers, writers, videographers,
motion graphic artists, prepress professionals, video game developers, mobile application developers, students and administrators.
They rely on our solutions for publishing, web design and development, video and animation production, mobile app and gaming
development and document creation and collaboration. End users of our creative tools work in businesses ranging from large
publishers, media companies and global enterprises, to smaller design agencies, small and medium-sized businesses and individual
freelancers. Moreover, our creative products are used to create much of the printed and online information people see, read and
interact with every day, including video, animation, mobile and advertising content. Knowledge workers, educators, hobbyists
and high-end consumers also use our creative products to create and deliver content that is of professional quality.
In addition to Creative Cloud, our Digital Media business offers many of the products included in Creative Cloud on a
standalone basis, including subscriptions to the Creative Cloud version of certain point products, and also offers a range of other
products and creative tools, including our hobbyist products Adobe Photoshop Elements and Adobe Premiere Elements, Adobe
Digital Publishing Suite, PhoneGap, Revel, TypeKit and apps such as Photoshop Touch and Revel that run on tablets and mobile
devices. Further descriptions of our Digital Media products are included below under “Principal Products and Services”.
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