to pirate; people also can’t afford it. So we realised two things. One, there is an affordability issue in the market. The second thing that we saw was our inability to serve customers with the latest technology. What was happening is from Creative Suite 5 to Creative Suite 6 there was an 18-month gap. During that period, we were just doing bug fixes on the previous platform.
Adobe software was also at the receiving end of hackers...
Totally agree with you. The way the tool was deployed and the way it was used, a lot of concerns came up. The other side of it was that the business was flat; we are not really growing. But profitability was very high. It was very lucrative business to be in but we really weren’t moving the needle.
The other thing that we saw was what users were demanding. Users were saying “I don’t want to be creating software from my desktop. I want to create a website and I should be able to do it on my iPad. Also, I should be able to sync up my files between what’s on my desktop and on the iPad.” Basically, the creative process was changing because devices like tablets which were only being used as a consumption device suddenly got the compute power.
Talk to us about the Creative Cloud.
About 14 months ago we launched the Creative Cloud. But here is the innovation that we did on technology and commercial side. We took everything that was there in Creative Suite, which was I would call the family silver, and we put it into the Creative Cloud. That’s the first thing that we did. The second thing that we did in the Creative Cloud is that we added products that were never a part of the Creative Suite.
On our commercial innovation, we tremendously brought down the cost of erstwhile expensive products at much affordable rates.
You mean to say the latest products at dirt cheap prices?
At dirt cheap prices, absolutely! Now look at what’s its done to our business okay. We launched this last June and we have added 2.3 million paid subscribers. We added 464,000 paid Creative Cloud subscribers in the second quarter ended May 30 alone. We expect to have 3.3 million subscribers for the Creative Cloud suite at the end of fiscal 2014. The Creative Cloud suite includes Photoshop, Illustrator and Flash software.
The strong uptick in