Adobe 2014 Annual Report Download - page 14

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14
also license perpetual versions of our software with maintenance and support, which includes rights to upgrades, when and if
available, support, updates and enhancements.
For fiscal 2014 and 2013, there were no customers that represented at least 10% of net revenue. For fiscal 2012, Ingram
Micro accounted for 11% of net revenue. 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 2014 and 2013, no single customer was responsible for over 10% of our trade receivables.
Order Fulfillment 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.
Our evolution to a services and subscription-based business model has decreased the need to produce and distribute physical
products. We still produce packaged products for a subset of our business, but that percentage is declining as the digital delivery
of our services and subscriptions continues to grow.
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, Digital Agencies, and solution partners. Adobe invests to enable 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 and manage 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 portion of our support revenue is composed of our enterprise maintenance and support offerings. These offerings entitle
customers to:
• the right to receive technical support on the technology they have purchased from Adobe;
• the right to receive basic “how to” help in using our products; and
• the right to receive product upgrades and enhancements during the term of the maintenance and support period, which
is typically one year.
We offer a range of support programs, from fee-based incidents to annual support contracts. Additionally, we provide
extensive self-help and online technical support capabilities via the web and through social media channels allowing customers