While Adobe wrapped up its year with a strong fourth quarter earnings report on Thursday, a big focus for the software giant going into 2013 will be catering to enterprise customers.
During the quarterly conference call this afternoon, CEO Shantanu Narayen said that Adobe made a number of strides with the release of Creative Cloud for individuals and teams this year.
Narayen added that Adobe will be following up with a release for the enterprise segment in 2013 as Adobe has already begun to transition certain customers to a new licensing group being referred to as Enterprise Term License Agreements.
Adobe's chief financial officer Mark Garrett explained that these licenses will function much like existing Creative Cloud subscriptions in that they are "term-based" and will "give customers access to ongoing technology updates."
The migration/upgrade process to enterprise-level access to the Creative Cloud began this past quarter, so it is important to note that the number of new individual and team subscriptions do not include these customers covered under ETLA.
Garrett explained the methodology and financial implications here:
As our enterprise customers migrate to ETLAs, some of these contracts involve estimated numbers of licenses rather than precise registered user information. As such, we have decided we should exclude enterprise-based subscriptions from our Creative Cloud subscription count. However, because revenue from ETLAs is recognized ratably, we will include the annual contract value of ETLAs in our Creative ARR calculations.
However, Garrett noted that Adobe expects revenue for its Digital Media unit to be down next quarter as the company jumbles around and sorts out this new class of customers.
Garrett ended the discussion on a positive note by asserting that even though 2013 will be considered a "transitional year" for Adobe, the software provider is on track to possibly surpass its goal of transitioning to a complete cloud delivery model within four years.
Screenshots via Adobe Investor Relations