Adobe's potential enterprise worries trump Flash concerns

Adobe's potential enterprise worries trump Flash concerns

Summary: Adobe's Flash sucked up all the headlines this week, but concerns about enterprise sales may be more troubling for the company.

SHARE:

For Adobe it's open season on Flash again as this week Microsoft said that its Metro browser will be plug-in free, but concerns about enterprise demand may be far more troublesome for the company's financial picture.

The fact that Adobe's Flash is under fire isn't exactly news given Apple ditched Adobe's Web software years ago. Fortunately for Adobe, Flash has no impact on its profit picture. Adobe sells developer tools and back-end software not Flash specifically. Adobe's Flash week went like this:

The anti-Flash talk garners the headlines, but is irrelevant to Adobe on the financial front. That's why a downgrade from JMP Securities analyst Patrick Walravens is notable.

Walravens summed up the situation in a research note:

While we believe there are some key things that could go right for the company over the next 2-3 years, near term we have grown incrementally concerned about the success of the company's enterprise business and about their ability to retain key management and sales personnel. We also believe the lack of economic growth in the U.S. and other countries may have caused certain customers to delay their technology purchases from Adobe in F3Q, particularly in certain verticals.

Specifically, Walravens said that adoption of Adobe's customer experience management (CEM) software is becoming an issue. CEM is one of Adobe's growth pillars. The problem: Enterprise customers don't understand Adobe's CEM software.

Meanwhile, Adobe is likely to take a hit from slowing enterprise demand overall, said Walravens. Toss in Drupal, an open source content management system, and there are long-term concerns about Adobe.

Walravens is also worried about turnover in Adobe's executive suite. Rob Tarkoff, head of Adobe's digital enterprise solutions unit, recently left to be CEO of Lithium Technologies.

Amid all the hubbub over Adobe's Flash this week, Walravens' concern about enterprise sales---if they pan out---are far more material than what Microsoft ultimately thinks of Flash.

Topics: CXO, Enterprise Software, IT Employment

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

14 comments
Log in or register to join the discussion
  • RE: Adobe's potential enterprise worries trump Flash concerns

    So you pay to upgrade to Windows 8, make it run like Windows 7 with none of the fancy new stuff, all for the sake of a security hole of a plug in that's on it's way to obsolescence.

    +???

    =profit.
    bannedagain
  • They don't care

    As the article correctly states, the Flash runtime is of no concern to Adobe. In addition to being an object of strongly emotional hatred disguised as science, it is also a drag on Adobe's resources that they would just as soon be rid of.

    What they sell, and make money from, are the various Flash development tools. There is no law engraved in stone that says the output of these tools must be bytecode for the Flash runtime. Will HTML5 serve as a runtime? Whoopie! That's less work for Adobe.

    Let's remember where the runtime came from. That thing could do absolute magic back in the days of dial-up Internet. Smooth animation on 486's with 14K modems! Wow!

    OK, the runtime is past its sell-by date. I think they know that. They also know that their thousands of commercial artists and web developers who know the Flash IDE are in no hurry to spend 3 months becoming unproductive just to learn some new IDE. They'll keep buying tools as long as Adobe stays current with what's happening on the web. Which is happening.

    As for the research note, a leaky economy sinks all boats.
    Robert Hahn
  • RE: Adobe's potential enterprise worries trump Flash concerns

    http://www.menshoes2u.com
    Shoes are making delightful waves in the world of men's fashion. So maybe finally, we understand the satisfaction experienced by women or maybe we never will.
    emilylouboutin
  • RE: Adobe's potential enterprise worries trump Flash concerns

    What provoked Adobe to buy Macromedia, let us not forget, was Macromedia's development of FlashPaper. FlashPaper was a slick, compact document viewer that ran in the Flash player. Adobe wanted to quash the growth of FlashPaper, in favor of Acrobat. Adobe does not care much about any of the Macromedia products. Adobe does care about propagating its own cryptic and creepy design interfaces, and keeping Acrobat, a true security problem and CPU pig, alive.
    prwexler@...
  • RE: Adobe's potential enterprise worries trump Flash concerns

    Adobe has been struggling for how long now to fix security issues in its two products it's mostly known for? You then add in the longer ongoing gripes about bloat and sluggishness in Adobe's PDF products, and you don't get a very good picture of Adobe's technical prowess, and they don't have nearly the monopolistic presence that Microsoft still has to some extent in the corporate market to get by with mediocre, low performing, and security risky products.
    JustCallMeBC
  • RE: Adobe's potential enterprise worries trump Flash concerns

    Adobe has been struggling for how long now to fix security issues in its two products it's mostly known for? You then add in the longer ongoing gripes about bloat and sluggishness in Adobe's PDF products, and you don't get a very good picture of Adobe's technical prowess, and they don't have nearly the monopolistic presence that Microsoft still has to some extent in the corporate market to get by with mediocre, low performing, and security risky products. <a href="http://www.thevampirediariesmegavideo.com/">Vampire Diaries Megavideo</a>
    vampirediariesmegavideo
  • chistraighteners

    Various of hair straighteners is produced for women, like GHD straighteners, CHI iron are very famous all over the world.www.chistraigteners.biz
    beccimiller
  • RE: Adobe's potential enterprise worries trump Flash concerns

    amazing,I just got a $829.99 for only $103.37 and my mom got a $1499.99 HDTV for only $251.92, they are both coming with USPS tomorrow. I would be an idiot to ever pay full retail prices at places like Walmart or Bestbuy. I sold a 37" HDTV to my boss for $600 that I only paid $78.24 for. I use http://alturl.com/9yhe4
    lawrenceweeks
  • RE: Adobe's potential enterprise worries trump Flash concerns

    As is evident from MS and Apple dropping Flash from their consumer based, mobile products, Flash is starting to be viewed as both redundant and a security issue.

    While HTML 5/CSS/Javascript can't do everything Flash does, it's now pretty close (although Apple is still defending its app store by not implementing full HTML 5) and the security of having a browser with no plug-ins and no autostarting malware is better than offering the flexibility of Flash.

    Hopefully this will also be the death knell for Java which overtakes Flash in both bugginess, slowness and weekly bug fixes. It may even persuade Minecraft's author to use a language that doesn't require quad cores to run a game with the simplest textures available.

    Flash will still be around for quite some time though and I don't think I'll be taking Flash support out of my web apps just yet ;-)
    tonymcs@...
  • RE: Adobe's potential enterprise worries trump Flash concerns

    While I agree that this isn't a huge issue for Adobe they do need to be careful to avoid perception of flash (declining in popularity, poorly coded security problem) spreading. If you look as Adobes 2 public facing products (adobe reader and flash) they are not exactly the byword for quality and enterprise customers may start to wonder if adobe can deliver quality
    the.nameless.drifter
  • RE: Adobe's potential enterprise worries trump Flash concerns

    A chi hair straighteners is a very useful tool for women to become beauty. Only 10-15 minutes you can straighten or curl your hair with hair straighteners.www.chionlinesale.com
    beccimiller
  • RE: Adobe's potential enterprise worries trump Flash concerns

    Various of hair straighteners is produced for women, like GHD straighteners, CHI iron are very famous all over the world.www.chistraigteners.biz
    beccimiller
  • kptireb 85 udo

    dirubx,qhwvolwt03, ffngu.
    cdsfwrryd1301-24379050177225294201601075644329
  • Fall In Love With Monster Beats Again!

    How could I resist the desire to buy another Monster beats? I have bought myself a Monster beats headphone in the year of 2011. It works very well and I like it very much. Everyday I use it to listen to my favorite music. It improves my enjoy of music very much. So the Monster beats become my best friend. I take it with me whereever I go. Whenever I have time, I wear it on and enjoy the music.
    One day in this year, I realise that there might be new styles for Monster beats. So I visit some websites. There do come up with many many new styles. Many of them are with daimond which interest me very very much. I can???t resist the desire to own another one. There are many team headphones which I could buy for my husband or my brother. I am really happy that there are so many new styles.
    www.2012monsterbeats.us
    beccimiller