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Why Apple Should Acquire Adobe
aabode writes "OSWeekly.com's Brandon Watts suggests that Apple should acquire Adobe. Why? 'While Apple has done a great job of developing media applications for beginners (the iLife suite is a good example of this), they could use a boost on the professional side. Granted, Final Cut Studio has become the standard when it comes to professional video editing, and Logic Studio is a great professional solution for editing audio, but what about the graphics and Web design segments of the market? If people want tools to support these interests on the Mac, then they turn to Adobe.'"
monopoly, it was real fun...
Jesus saves souls and redeems them for valuable cash prizes
...what they did with Emagic. Emagic Logic, lovely music sequencing program, worked on Windows and Macs. Apple buy them up, first thing they do, "sorry guys, its going Mac only".
Now, if they do that with Adobe software, what do you think will happen?
Pros and Cons:
Pros: establishes Apple as THE platform for photographers and designers by removing the Windows competition. Sure, Apple could continue to fund the development of Photoshop and Illustrator for Windows. But the latest and greatest version would always appear on the Macintosh first.
Cons: even with its current pile of money (iPhone and Ipod are two very successful products after all), I am not sure Apple has enough money to buy Adobe. Not to mention Microsoft would certainly file an anti-trust suit. It also raises all kind of legal snafus in Europe for instance, which would certainly frown upon it.
Cons: Postscript and PDF are both open standards. I am not sure I'd like to see Apple control their future.
So, yes, and interesting prospect. Still pretty unlikely, though.
The right to offend is far more important than the right not to be offended. (Rowan Atkinson)
...how someone can suggest this when the most basic but most widely-used Adobe product, Flash player, is a giant flaming CPU-hogging turd in OS X.
Cause the writer of the article has stock in (company) and wants to make a quick buck...
I know I've seen this same headline with Nintendo there, and I can't help but think there've been others. I just don't care enough to search. If Apple wanted to buy something, they'd buy it. I think Apple's pretty happy where they are though.
Adobe's products have gotten insanely bloated and crappy the past 5 years, and Apple isn't doing much better either. Quicktime and Itunes love to autorun 8 tons of horsecrap, and Adobe does the same + does a bunch of bullshit activation too. Acrobat Reader has become such a disaster that anyone with a clue has dumped it for Foxit (We just did that at work for 500+ workstations, and we are HEAVY users of the pdf format).
I can see it now. Adobe Quicktime Version 13 Profesional will have 5 autostart services, have mandatory bullshit activation every time it's actively used + background activation every 60 minutes, hijack all your multimedia settings, require 2 gigabytes of disk space and 4 gigabytes of ram, and kill your dog for good measure.
Lawyers, MBA's, RIAA? A jedi fears not these things!
At least that's what our department head, the guy with advanced degrees in engineering and marketing, says. His claim is: companies that buy other companies who do something similar end up diluting themselves and losing maneuverability.
Apple's already designing hardware *and* operating systems *and* lots of applications. Do they need to spend money on *more* applications, when those applications are currently being managed by someone else who knows how to market them, and whose marketing helps drive Apple's sales effectively for free?
Nostalgia's not what it used to be.
While it might seem that Adobe would make a good acquisition for Apple there are several factors weighing against it IMHO. First, the price for Adobe, now that it includes the assets of the former Macromedia combined with the many successful core Adobe products, would be very high indeed for Apple. Apple might do better by reserving such a large chunk of their available investment capital, assuming that they could finance the purchase (haven't checked the respective balance sheets of the companies, but Yahoo Finance could probably get someone a ballpark estimate if they were interested), for internal R&D, improvements to their core products, OSX Leopard for example, and especially their profitable iPhone and iPod hardware sales and services which brings up the second and main point:
The iPhone, iPod, and iTunes angles are so profitable for Apple that it would be hard to justify NOT investing the maximum available capital or the last available profitable investment dollar (where marginal return exceeds marginal cost of investing one more dollar) into the expanding entertainment hardware and media business. The opportunity cost of buying Adobe instead of or at the expense of continued investment in the profitable iPhone, iPod, and iTunes markets may simply be too high, even though Adobe might be a good fit for Apple at least conceptually, to justify.
Disclaimer: I am neither an Apple nor an Adobe shareholder and I have no personal financial interest in either company.
Well, this was *probably* done as a retaliatory move on Apple's part, as much as anything. Apple traditionally had a good foothold in the MIDI music, sequencing, and hard disk recording sectors - but Windows-only products were eating away at their market share. (Think products like Cakewalk Sonar, for example, or ACID Pro, or Gigastudio.)
Furthermore, some of the music gear out there was starting to only include Windows software for the purpose of editing or cataloging sound patches. (I remember buying a Yamaha Motif synthesizer a few years ago, and the only Mac software tools it included were for Mac OS 9.x only. OS X support was "coming soon" for pretty much the whole time I owned it.)
Apple wanted to create at least one more good reason to choose a Mac as a musician.
With Adobe, it's a whole different situation. For starters, Adobe uses their own methods of software development, which appear to be Windows-centric. (All of their new apps for OS X are supporting Intel Mac only, as opposed to "Universal binaries" that work with PPC Macs too. That would indicate they're not writing this stuff with Apple's xcode tools at all, but rather, doing some kind of ports directly over from their Windows versions.) I don't think Apple would want to buy out an entire product line that they'd have to re-code using xcode, before it would even be up to the standards they endorse of supporting both architectures.
Granted, Final Cut Studio has become the standard when it comes to professional video editing, and Logic Studio is a great professional solution for editing audio, but what about the graphics and Web design segments of the market? If people want tools to support these interests on the Mac, then they turn to Adobe.
It boils down to this: Pick the battles you can win.
Quick, everyone, let's jump in the wayback machine to the 90's, when Apple "made" just about everything under the sun. And was doing a pretty shit job of it, and suffering for it. Part of what brought back Apple was Steve saying "what the fuck are we doing making digital cameras and a dozen different desktop computers?" They dropped all the shit products Apple was screwing around with, and simplified the product line down to just two laptop models and three desktops, all with clearly delineated target audiences and design.
Apple has benefited for two reasons: their business capabilities are not diluted as much, and consumers find the buying experience easier and simpler.
I've needed to buy a new bike and a cell phone recently. Both industries are chock full of companies that will offer you DOZENS of different products that are all every so slightly different; go look at Nokia's website sometime. Fifty goddamn phones, when really there's only 3-4 categories of 'em.
Apple has acquired sotware packages and such when (I believe) they felt it would benefit the platform, or there was a deal to be had. This is the same reasoning behind the various Apple peripherals we were inundated with in the 90's; nobody else made a good Appletalk laser printer, so Apple said "dammit, we'll do it ourselves." It made sense to some degree, bolstered by the fact that schools liked to buy everything from one place. It's nice to be able to get everything for your gradeschool lab from one place. To some degree.
That's the challenge I think Apple will face in the future: not getting caught up in too many product areas trying to support the platform, to the extent that both the core hardware suffers and the sideline stuff no longer becomes compelling.
Please help metamoderate.
What would they gain from that?
The goal of a corporation in capitalism is to maximize their profit. They would have to invest massively in developing and maintaining a OS and wouldn't get much more revenue, so what's the point?
"Hannibal's plans never work right. They just work." Amy/A-Team
Sometimes its fun to write an entire column based on an incredibly unlikely and impractical idea....
You nailed it. Clearly, we have here somebody who read and followed the instructions outlined yesterday in How to Be a Tech Blowhard by Michael Kanellos.
My natural reaction to any blog-sourced article is to ask who the hell is this person and why should consider their opinion credible at all. Unfortunately, there's no bio at all for this Brandon Watts. Another pointless blog-spam as far as I'm concerned.
You've seen a very limited segment of Adobe's market then. In my industry (3D animation) an artist may have Photoshop, Illustrator, 3dsmax, Maya, or any number of other packages (much of it by Autodesk) open at once. Clearly they all need to be on the same OS. This is also why IMHO Adobe needs to look long and hard at porting their products to Linux - animation shops are now moving in a huge way towards Linux workstations (better integration with 'nix render farms, among other things). If anything Adobe wants to buy Autodesk (or the other way around), since those tools are so closely tied together.
Final Cut Studio has become the standard when it comes to professional video editing
FCP is very popular and making inroads to some pro shops but I wouldn't go so far as to call it "the standard" in professional video editing. Avid is still very popular in broadcast shops and Adobe still has a fair number of Premiere users out there. I'd go up against any of them with Sony Vegas. I'd give FCP the upper-middle range.
If anyone should buy Adobe it should be Sony. Then they could both change their name to Sonobe One, which sounds like a Star Wars character.
That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
1) Recent slashdot articles have claimed that Mac is at about 5% now
2) The fact that 50% use a pirated version (even if true) is irrelevant to the discussion at hand. Now, if you claim that 50% of Apple users use a pirated version... well, that would at least be relevant.
3) A lot of the Windows computers out there are office computers that wouldn't be using this anyway. The percentage that's important is the Apple market share amongst professionals, which is most likely *very* different than the standard market share number.
Thank God for evolution.
No, this wouldn't be the game of Monopoly, but it would be a familiar Wall Street game of corporate take-over... and a stupid one at that.
After the Time Warner / AOL fiasco has resolved into a case of "what were they thinking!?!" and BEA smartly tells Oracle to stuff it, let's look at the idea of Apple taking over Adobe.
First of all, Apple is a company that CEO Steve Jobs has somehow managed to steer into remarkable growth. Ten years ago they merged and integrated with NeXT. Probably not all that hard since both were Steve's babies and both were geographically located in the same place and both were relatively small in terms of staff size. I'm sure the corporate culture transformation had its bumps, but not too bad.
Just imagine merging Apple and Adobe, which I believe is housed in Seattle. Now we're talking about a two-campus company, rewriting the corporate management style-guide, firing sales staff and overlapping departments, yada yada yada. That would be mess #1.
Then think about the move of the Adobe code to Apple technology standards. Only an idiot would think Photoshop needs to be re-written as a Cocoa app. Do you really think we would get a better version of Creative Suite 4 next technology cycle? The new product development plans would evolve into mess #2.
Apple does what it does well: they REALLY innovate and focus on User Interface evolution. They see software market opportunities (Final Cut Pro, iLife, Aperture, etc.) and they expand their product line slowly and carefully. They are for the computer industry what Southwest Airlines has been for the Airline Industry for the past 30 years. If they bought Adobe (and other vulnerable software companies) "just because" without any strategy or focus they would become as irrelevant as Sony or Microsoft are becoming.
Now what would be nice would be seeing them slowly and steadily applying their cash into the hiring and development of the best & brightest of computer programming (and hardware engineering and design) talent. Don't buy Adobe and get stuck with some brilliant and some mediocre programmers; poach the top talent away from Adobe with top paychecks. That's my Good Idea #1.
I have one more Good Idea #2: create an incubation machine that finds programming talent and innovative spirit and spins off small software companies that can write incredible native-Apple killer apps. Apple has the corporate strategy, the design methodology, and the technology. They also exist in only one geographic location in the country. (And I, a developer in New York City, would kill for an opportunity to do Apple-platform development without moving to CA.) And I will agree that there are many apps and utilities that are needed--especially in the business/corporate IT niche--that exceed what the small Shareware developers can manage. If Apple could spin-off smaller Apple subsidiaries that had a stronger link to "the mothership", and if Apple invested some of its cash reserves into ongoing but cash-strapped projects (Gimp and OpenOffice are real, albeit imperfect, examples) we might get somewhere.
The really interesting challenge will be if Apple can grow in size while avoiding the bureaucratic morass that large corporations so often become. We shall see what the future holds...
Murray Todd Williams