The purpose of Cloud Service is to save money for customers
Lets be real here. We have no idea if customers will continue to pay a monthly fee from Adobe over the long term. They might...but they might also drop it before the first year ends. Lots of uncertainty moving to a new business model. Adobe products are not what they used to be as far as importance.... and this earnings report was shabby at best. If the adoption works well and they can get RE-SUBs....then it might be safe to buy here....but until then this stock is very unattractive.
iPhone users buy a new iPhone in less than two years, that's why Apple can make more money. MS Office users update MS Office in about 3 to 4 years, so Microsoft make less money than Apple, but still making money. If Adobe's users don't need to update their adobe software for 10 years, then where are Adobe's revenue coming from?