Do you manage your Adobe cloud licenses? You might want to start

Nowadays, the general perception in the software licensing market is that if you move your products to the cloud, the compliance position will not be a challenge and/or an issue anymore and, in addition, you will pay less. These two assumptions make customers to be completely at ease when it comes to audits from publishers that offer cloud based products.

recent survey conducted by our partner Snow Software showed that their customers have no concern when it comes to Adobe audits. During the survey, Adobe was not even mentioned by Snow customers on the “most feared vendors being audited by” list.

However, when it comes to actual audits, it turns out that almost 20% of Snow Software customers have been audited by Adobe.

Why Adobe cloud products should be managed?

Let’s first briefly clarify how Adobe defines cloud.

Currently, the way to obtain Adobe software is through a subscription contract, but products are still downloaded and installed locally on machines. This means that there is no real difference between an on-premise and a cloud Adobe software product from a deployment perspective.

From a licensing perspective, customers are currently able to purchase new Adobe software only through a cloud subscription, perpetual licenses (on-premise software) are no longer available since 2013.

Once customers realize that things did not change from a deployment perspective and they still have the software installed on their machines, the first question that will come to mind will be whether the compliance position will still be as transparent as they initially thought it would be. The short answer is: No.

Why is that? Well, most Adobe customers have both on-premise and cloud installations within their environments. This means that the same piece of software installed should be counted either towards the ‘old’ perpetual licenses or towards the ‘new’ subscription licenses.

“What license rules to apply?”  and “How to best calculate a compliance position?” will be questions that customers might raise in such situations.

For these customers, the subscription purchase model neither simplifies the compliance position nor makes it more transparent, as they tend to believe.

Adobe increases prices of their Creative Cloud Products

The second assumption customers make when they initially consider to move their products to the cloud is that it is a cost saving opportunity.

Back in 2011, when Adobe cloud was first announced, all the pros around this were related to software pricing: e.g. subscription licenses will be less expensive than perpetual licenses or having access to the latest functionality of the products will generate cost savings etc.

However, recent news revealed that due to the latest fluctuations in currency rates, Adobe will increase their prices in the UK, Brazil and Sweden. This proves that one of the advantages of subscription models, the “locked–in” license price, is not always applicable.

The increases should be applied starting with 6th of March 2017, but for the customers that are currently using subscription models, the price won’t increase until the next renewal.

Knowing that nowadays the only way to purchase Adobe software is through subscriptions, sooner or later, all customers will adopt the new prices.

Whether you are a customer that has both perpetual and cloud licenses, or you only have subscription licenses, ‘postponing’ managing your Adobe licenses just because of the ‘cloud name branding’ might cost you more than you think, also considering the announced price increases.

This article was published on 02-03-2017