Adobe a cloud play? Really? Only change is monthly billing
It is sad how dumb Wall Street fund managers are from their ivory towers. Adobe as a cloud play? #$%$! Adobe is software you download. Before you bought it and paid in full and downloaded the software. Now you download the software same as before but pay smaller monthly installments. Anyone want to explain how that is a cloud play? These guys have no clue what is cloud.
By their definition every website is now a cloud play and every subscription software downloaded or not. Every website since day one was actually a cloud play.
Adobe's genius was praying upon these morons and naming it "Creative Cloud". Just because you download software from the web to your local computer and pay monthly doesn't make you a cloud play.
Sure adobe has a few online web services but those are not core functionality or revenue makers like Photoshop and such.
People have lost all idea of what makes a cloud offering and it gets used for everything. Amazon runs hosting with their cloud infrastructure. So does Rackspace. Salesforce and Amazon both use cloud infrastructure to run their website and software as a service. Others merely run their websites on a server or cloud hosting servers and they think all these are the same.
Adobe's numbers and guidance were horrific. People are going to be bailing once the intro rate of 29/month jumps to 50/month which is 600/year. I got the 30/month rate and adobe gave me a free month when I tried to cancel. They would not let me cancel until after my anniversary of the promo 30/month rate. So in a month I'll cancel and as many get their rates jacked up you will see more attrition.
The money will never come to justify the valuation and the sheep will be slaughtered.
you are right. they hiked the prices and will see more attrition. Next qtr, they are going to be dumped like anything. With so worst forecast every qtr, so high FW P/E and stupid folks keeps on buying. This is unbelievable pumping i can see. This is another way to show +veness in weak earning. Very nice game played by CEO by projecting cloud subscriber numbers. 60-70% of the stock owner doesnt have clear idea about CLOUD.
It is just a momentum in the stock which will come down shortly. No worry shotrties...this is the best time to short. Best luck.
I am a subscriber and pretty upset about how Adobe handled the server break-in. I have a friend that had $1500 charged to his credit card because of this mess. Both of us won't be renewing our subscriptions.
Just allowing customers to use software for period of time. Nothing changed in what their core offering is which is the suite of desktop applications. They just moved from selling for set price to own software by license to subscribing monthly. Software still downloaded like it has been for past decade and used the same way on local desktop. Calling this cloud is pathetic but enough to deceive MBA wall streeters who have no clue.