Edit: after posting I realized my reading comprehension needed some work - I'd misread who was getting the net loss. That said, it remains to be seen if adding palatable SaaS pricing will help or hurt.
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These SaaS options aren't necessarily the net loss you describe.
I don't mean this to sound like an ad for Adobe's subscription model, but as someone who's used a lot of their products for over a decade, it's hands-down the best way for companies to get access.
In Adobe's case, per-app pricing is really there to set value for the Creative Suite bundles, which in turn set the value for subscriptions.
Let's say I need Photoshop. I have 3 primary options:
- Buy Photoshop CS6 for $700 right now. It's on a 2 year release cycle, and was recently updated, so that's a solid 2 years of guilt-free use until the next rev.
- Buy a CS bundle - eg Design & Web Premium for $1,900. Includes Photoshop Extended, Illustrator, InDesign, Acrobat, Flash, and Fireworks.
- Subscribe at $50/mo for 1 year ($75/mo w/ no commitment). Gets everything above, plus Premiere Pro, After Effects, et al.
If I buy the bundle, that's a $4150 value for a mere $1200 more than Photoshop by itself. This is why the bundles have always sold so well.
If I subscribe for 2 years, it's $500 more than Photoshop by itself, and $700 cheaper than buying a standard CS bundle. Also, I get the latest version of every Adobe tool for the duration, so if different people in the org have different needs I don't need to care.
Right, SaaS (from folks like Adobe) is actually downward pressure on software prices. If they switch to a pure SaaS model (which some companies have sporadically attempted to do) they simply bleed customers AND lose revenue from the ones they keep.
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These SaaS options aren't necessarily the net loss you describe.
I don't mean this to sound like an ad for Adobe's subscription model, but as someone who's used a lot of their products for over a decade, it's hands-down the best way for companies to get access.
In Adobe's case, per-app pricing is really there to set value for the Creative Suite bundles, which in turn set the value for subscriptions.
Let's say I need Photoshop. I have 3 primary options:
- Buy Photoshop CS6 for $700 right now. It's on a 2 year release cycle, and was recently updated, so that's a solid 2 years of guilt-free use until the next rev.
- Buy a CS bundle - eg Design & Web Premium for $1,900. Includes Photoshop Extended, Illustrator, InDesign, Acrobat, Flash, and Fireworks.
- Subscribe at $50/mo for 1 year ($75/mo w/ no commitment). Gets everything above, plus Premiere Pro, After Effects, et al.
If I buy the bundle, that's a $4150 value for a mere $1200 more than Photoshop by itself. This is why the bundles have always sold so well.
If I subscribe for 2 years, it's $500 more than Photoshop by itself, and $700 cheaper than buying a standard CS bundle. Also, I get the latest version of every Adobe tool for the duration, so if different people in the org have different needs I don't need to care.