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Adobe Systems Incorporated
Company type Public
 Nasdaq: ADBE
NASDAQ-100 Component
S&P 500 Component
Industry Computer software
Founded Mountain View, California, US
(December 1982 (1982-12))
Founder Charles Geschke
John Warnock
Headquarters Adobe Systems complex,
San Jose, California, U.S.
Key people
 Charles Geschke, (Co-Chairman)
John Warnock, (Co-Chairman)
Shantanu Narayen(President and CEO)[1][2]
Products List of Adobe products
Revenue
  • Decrease US$ 4,055.24 M (2013)[3][4]
 
 
  • Decrease US$ 422.723 M(2013)[3]
 
 
  • Decrease US$ 289.985 M (2013)[3]
Total assets 
  • Increase US$ 10,380.298 M (2013)[5]
 
Total equity 
  • Increase US$ 6,724.634 M (2013)[5]
 
Website Adobe.com

Adobe Systems Incorporated, also known as Adobe Systems or Adobe (/əˈdoʊbi/ Audio file "Pronunciation Adobe Systems.ogg" not found) is an American multinational computer software company headquartered in San Jose, California, United States. The company was founded in December, 1982 by John Warnock and Charles Geschke who left Xerox's Palo Alto Research Center (Xerox PARC) to develop and sell the PostScript page description language. [7][8] Through acquisitions and innovation, it expanded worldwide over 30 years, to include major development operations in North America, Europe and Asia/Pacific.[9]

From its beginning in printing and desktop publishing (DTP), Adobe range of products has expanded to digital marketing, digital media solutions, enterprise business applications, Web applications, and more recently, Cloud and mobile applications. The company is best known for its software, family and suites of applications Portable Document Format (PDF), Flash Player, Adobe Acrobat, Adobe Creative Cloud, and Adobe Marketing Cloud. [10]

History

Main

The history of Adobe began when Geschke and Warnock first met and started working together at Xerox PARC where they develop Interpress, a page description language that was kept proprietary. This decision prompted Geschke and Warnock to leave PARC and found Adobe Systems Inc. in the late 1982.[7][11] A venture capitalist named Bill Hambrecht gave the new entrepreneurs a personal check of $50,000 as his contribution to the startup costs and later had his firm invest $2.5 million in Adobe.[12][13] The company name Adobe originates from the Adobe Creek stream in Los Altos, California.

Within four years, Adobe became a publicly traded company under the symbol ADBE on the NASDAQ exchange.[14] Adobe has grown from a single-digit beginnings to a successful, major technology enterprise.[9] After four years of operation, its annual business improved significantly with sales figures increasing from $2.5 million in 1984 to $80 million in 1988. The following describes important historical milestones.[15][9]

Key dates

1982 -1984: The Foundation and incorporation years

Charles Geschke and Chuck Geschke at the foundation of Adobe Systems in 1982.
  • 1982. Charles Geschke and Chuck Geschke leave Xerox to found Adobe Systems in December 1982. The company name Adobe comes from Adobe Creek in Los Altos, California, which ran behind the houses of both of the company's founders. Together with Doug Brotz, Ed Taft and Bill Paxton, they created a simple language called PostScript that is put on sale in 1984. It was the first printing software that enabled users to print pages that included text, line art and digitized photos.

The first Adobe's corporate logo was designed in 1982 by Marva Warnock, a graphic designer and wife of John Warnock.[16] This original logo which lasted until 1993, displayed the entire name "Adobe Systems Incorporated" on a dark background.

  • 1984 : Dr. Warnock served as President and Chairman of Adobe and then CEO for the following sixteen years. Although he retired as CEO in 2001, he still co-chairs the board with Geschke. Dr. Charles Geschke, Chairman of the Board Adobe Systems Incorporated, has served as chairman of the board since 1997. He previously served as president.[7]

1985 - 1989: The Postscript years

Steve Jobs (Apple), John Warnock (Adobe) and Charles Geschke (Adobe) in the early stages of the PostScript and the LaserWriter.
  • After creating PostScript, a revolutionary breakthrough in printing technology, Adobe released digital fonts as Type 1. Then, Adobe Type Manager followed in response to Apple's TrueType.[15] Later in 1996, it announced the OpenType font format in association with Microsoft.
  • In the mid-1980s, Adobe entered the consumer software market with Adobe Illustrator, a vector-based drawing program for the Apple Macintosh. Illustrator, which grew from the firm's in-house font-development software, helped popularize PostScript-enabled laser printers.
  • 1985 - Apple, Aldus, and Adobe joined into a strategic alliance. Their respective products: the Apple Macintosh computer and Apple LaserWriter, the Aldus PageMaker software, and Adobe PostScript printing technology transformed the publishing industry and helped generate pages in an integrated process.
  • 1986 - Adobe Initial Public Offering, typographer Sumner Stone is hired.
  • 1987 - Adobe Illustrator 1.0 is released.
  • 1989 - Adobe introduced its flagship product, Photoshop for the Macintosh. Two years later, Photoshop revenues eclipsed those of Illustrator and established the Adobe brand worldwide. The same year, Apple sold its 20% equity in Adobe, netting $85 million.
  • 1992 - Adobe Acrobat software and Adobe Portable Document Format (PDF) are announced.

1990 - 1999: The innovation years

  • 1991 - Photoshop was launched, Adobe Premiere (Mac) was introduced, Adobe had 700 employees.[15]
  • 1993 - Adobe introduced PDF, the Portable Document Format, an International Standard: ISO 32000-1:2008. Then, its Adobe Acrobat and Reader software suite is released together with Adobe Premiere (Windows).

Adobe adopted in 1993, its current logo featuring the stylized "A",[11] the letter A cut in white on a red background. The A part was adjusted and stands as the current logo of the company.[7]

  • 1994 - Adobe acquired Aldus (PageMaker), the company revenues exceeded $500 M.
  • August 1994 - Bruce Chizen is nominated Chief Executive Officer of Adobe Systems. He led Adobe from a desktop software company to a technology platform provider for enterprises.
  • 1996 - Macromedia introduced Flash, Adobe moved into San Jose world headquarters.
  • 1997 - Adobe ranked no. 2 software firm after Microsoft, Macromedia introduced Dreamweaver
  • 1999 - InDesign released. For the first time, Adobe's revenue exceeds the $1 billion mark.

2000 - 2007: The expansion years

  • 2000 - Bruce Chizen became president and CEO; Chuck Geschke retires.[15]
  • 2001 - John Warnock retired, the number of Adobe employes reached 3043.
  • 2002 - Adobe acquired Accelio (electronic forms technology).
  • 2003 - Adobe launched Creative Suite, Adobe Premiere was rebranded to Adobe Premiere Pro, Macomedia hosts first annual MAX conference.
  • 2004 - Adobe ranked 6th in Fortune Magazine’s "100 Best Companies to Work For".[17]
  • December 2005 - Adobe acquired former competitor for for $3.4 billion Macromedia and included in its catalogue of products ColdFusion, Dreamweaver, Flash and Flex.[18][19][20]
  • 2007 - Adobe launched Creative Suite 3, Shantanu Narayen appointed CEO, company revenues exceeded the $2 billion mark.[2]
  • December 2007: Shantanu Narayen takes over as President & Chief Executive Officer.[21] after Bruce Chizen retired in November 2007.

2007- present: The Cloud and mobile years

  • In December 2012, A new Adobe corporate campus opened in Lehi, UT.[22]
  • May 6, 2013, Adobe interrupted the Creative Suite and replaced it with the Creative Cloud.[23][24][25] which was released alone on June 17, 2013. Although this move faced substantial criticism, a survey by CNET and Jefferies revealed that most of the subscribers plan to renew.[26][27][28]
  • November 2013, the Adobe Marketing Cloud package is enhanced with mobile features and madesmartphones and other mobile devices new targets for analytics.[29][30][31]
  • October 2011, Adobe Systems announced the switch from a perpetual software license model to a software as a service model, for its software package intended for creative professionals.[32]
  • In February 2009, the Mobile Content Delivery Protocol (former Flash Cast protocol) and AMF protocols are made available.
  • In May 2008, Adobe proposed a standardised Flash single runtime through its Open Screen Project, an alliance of mobile industry partners.[33]

Products

Main article: List of Adobe software
See also: List of Adobe Flash software

PostScript, Adobe Reader, Adobe Flash, and Adobe Integrated Runtime (AIR) were the four core Adobe technologies that first enabled the exchange of data, digital documents, images, and video. In addition, the following selection shows the most notable Adobe products and collections:[34]

Awards and recognition

Since its foundation in 1982, Adobe Sytems and its founders have received many awards, distinctions and recognition in the industry.[35] A selection of these awards and distinctions is as follows:

  • From September 1988 to August 2014, Adobe has been granted 2118 patents by the United States Patent and Trademark Office (USPTO).[36]
  • In June 2014, the company was ranked 6th among the great places to work in India.[37][38]
  • In 2014, Newsweek has ranked Adobe 3rd in terms of corporate sustainability and environmental impact.[39]
  • August 2013, Adobe is recognized by Gartner, Inc. as a Leader in the 2013 "Magic Quadrant for Web Content Management" research report.[40][41]
  • From 2012 to 2014, The Sunday Times, the largest-selling British national Sunday newspaper, has consistently recognized Adobe UK in its 100 Best Companies to Work For: 63rd in 2014, 80th in 2013 and 33rd in 2012.[42][43]
  • September 17, 2009: Adobe co-founders Geschke and Warnock received from President Barack Obama, one of the nation's highest honors bestowed on scientists, engineers and inventors — the U.S. National Medal of Technology and Innovation. [44] [45][46] Later on October 15, 2010, the Marconi Society conferred the 2010 Marconi Society Prize to the Adobe founders for their contributions to publishing and imaging technology.[47]
  • In May 2008, Adobe Systems India was ranked 19th of great places to work in India.[48] Recently, in June 2014, it was recongized as the 6th of great places to work in India.[49]
  • In October 2008, Adobe Systems Canada Inc. was named one of "Canada's Top 100 Employers" by Mediacorp Canada Inc.[50] and was featured in Maclean's news magazine.
  • Since 1995, Fortune Magazine has consistently ranked Adobe as one of the best place to work for. Among U.S. Companies, it has been ranked in terms of work environment as the 5th in 2003, 6th in 2004, 31st in 2007, 40th in 2008, 11th in 2009, 42nd in 2010, 65th in 2011, 41st in 2012, and 83rd in 2014.[51]
  • Around the world, Adobe has been included in Romania’s Best IT Companies to Work For by Hewitt,[52] Australia’s "Top 50 Best Places to Work" 2013 by BRW Magazine,[53][54] Germany’s Best Employers List by the Great Places To Work Institute.[55] [56]

Corporate affairs

Operations

Main article: List of acquisitions by Adobe Systems

The most notable acquisitions of Adobe are the following:[57]

  • In June 2013, Adobe acquired Neolane, a French technology company.
  • In January 2012, Adobe completed the acquisition of Efficient Frontier, online advertising platform for search engine marketing (SEM).
Adobe Systems Canada in Ottawa, Ontario

Adobe operates both at the national (U.S.) and international levels and maintain corporate offices at the following major locations:[60]

Adobe Systems offices in Noida, India

Corporate finances

Adobe Systems went public as Nasdaq: ADBE and started trading in 1986.[14] In the last 15 years, its revenue rose substantially from $1 billion in 1999 to $4.4 billion in 2012[62] and $4 billion in 2013 ($2,068.3 million in Q2, 2014)[3][4][5][63][64] spread across its most notable products and services.[65]

Corporate culture

Employees, partners, and stakeholders have appreciated the unique Adobe environment. For several years, Adobe is consistently cited among the "best places to work" in US by Fortune[51], San Jose Mercury News,[66], Human Rights Campaign,[67][17] Adobe Systems Canada Inc. by Maclean's, a Canadian weekly news magazine,[68] in Germany in 2013 and 2014[69][70][71] and in India.[37][38].

Social responsibility

Over the past 30 years, Adobe has been involved in environmental sustainability, community organization, global giving (corporate, employees), waste reduction, and governance.[72][73][74][75] In 2006, Adobe financial contributions to foundations, community organizations, schools, and universities around the world, exceeded $15 million.[76][77] For example, Adobe contributed $300 millions worth of software (ex. Photoshop, Premiere Elements, Presenter, Captivate, EchoSign, teacher training resources) to the White House ConnectED Initiative[78] to promote technology in education[79]. It also created 1,100 free training programs for youth, educators, and non-profit agencies in addition to the "Adobe Youth Voices and Creativity Scholarships" through the Adobe Foundation[80][81] and the "Adobe Youth Voices Awards UNICEF Challenge"[82] inspire youth throughout the world to get involved in their communities.[76]
As part of its Lehi, Utah, campus construction, Adobe supported an Artist In Residence program at Thanksgiving Point Institute.[83] Adobe's corporate sustainability and environmental impact have been recognized by Newsweek in 2014.[39]

Controversies

  • On May 16, 2014, Adobe Systems Inc acknowledged a day long service outage that disrupted access to its subscription-based Creative Cloud including Photoshop, Illustrator and Flash. However, the interruption did not affect customers who had downloaded the package and were logged in. The service was restored the following day with Adobe's apology for system failure.[84][85][86]
  • In October 2013, Adobe witnessed an important security breach in its system. A significant part of the source code of the company products was stolen[87][88][89] together with more than 150 million compromised customer records (IDs, passwords, encrypted credit and debit card numbers). Some of this information was then displayed online.[90][91][92] Adobe said that it alerted federal law enforcement authorities and its financial partners of the incidents.
See also: High-Tech Employee Antitrust Litigation
  • As a result of the previous year controversy, Adobe announced on November 9, 2011 the termination of Flash development for mobile devices. The HTML 5 langauge for mobile devices will become the company's main focus.[97][98]
  • In April 2010, the Apple and Adobe Flash controversy originated from Apple's failure to support the popular Adobe Flash in its iPad browser. Apple's late CEO, Steve Jobs argued that Flash will eventually become obsolete with the introduction of HTML5.[99][100] This decision has prompted an inquiry by the U.S. Department of Justice into the Apple Flash policy.[101][102]
See also: Comparison of HTML5 and Flash
  • Around August 2000, Adobe Systems and Macromedia engaged in a series of claims and counter-claims related to product patent violations which led to mutual lawsuits.[103][104] Then, In July 2002, Adobe and Macromedia reached an agreement that settled their disagreements.[105][106]

Criticisms

  • Cloud-based, subscription model

The introduction of Adobe Creative Cloud as a substitute of the Creative Suite in early May 2013,[107] triggered a strong opposition and became the object of intense criticism.[108][109] However, within a year, this criticism lost momentum as Adobe adjusted its subscription plans and followed suite with most of its software exclusively sold through subscriptions.[109][110][111]

  • Pricing and upgrade policies
  1. In February, 2013, Adobe together with Apple and Microsoft have been criticized for pricing disparities of their products in Australia. [112][113] As a consequence, the Australian government has summoned the companies to a special committee hearing regarding perceived unfair pricing methods. The Australian House of Representatives Standing Committee on Infrastructure and Communications was looking into the impact of prices charged to Australian consumers. [114] Similar complaints from European customers were also heard about the Creative Suite 3 Master Collection[115] a petition to protest over "unfair pricing" was published and signed by 10,000 users.[116]
  2. In November 2011, Adobe has been criticized for its upgrade policy of Adobe Creative Suite CS6. This policy restricted the eligibility to a normal software upgrade, only to users with the previous version (i.e. CS5). This change prompted Scott Kelby, the President of the National Association of Photoshop Professionals (NAPP), to speak out and express concerns about this policy change in an open letter to Adobe. [117] With the introduction of the new subscription-based model for the Creative Cloud and Marketing Cloud software, Adobe has significantly changed its upgrade policies.
  • Quality of customer service: In August 2009, following sustained criticism of the quality of its customer service, Adobe’s director of Technical Services, Lambert Walsh publicly apologized to its customers in an open letter titled "Open Letter to Adobe Customers".[118]
  • Privacy and security issues
  1. In January 2008, Adobe has been criticized for its association with Omniture, an online marketing and web analytics company in Orem, Utah. Adobe was accused of collecting without permission, data from the Creative Suite 3 users. The details of this issue have surfaced when a savvy user noticed that a domain name similar to a local network IP addresses (such as 192.168.112.2O7.net) was being used in the Adobe Creative Suite 3 for data mining purposes.[119][120] The Creative Suite users were particularly concerned about the fact that Adobe and Omniture offered an opt-out method (block the usage tracking) only within a browser and not at the application level.
  2. Over the years, cybersecurity experts have pointed out Adobe several troubles with hackers.[121] In particular, Adobe's Flash Player has been singled out for performance[122] by security researchers from Kaspersky Lab and security issues (see criticism of Flash Player).[123]. The late CEO of Apple Inc. has criticized and rejected Flash in an open letter[124] that received an open response from Adobe.[125] In 2007 and 2009, an Adobe Reader vulnerability opened the door to hackers into files on users' computers. In 2010 and 2011, malicious PDF attachments and Flash Player were used to hack into several companies, including Adobe, Google and Rackspace. In 2012, Adobe's security verification system was compromised through the access of its internal servers.[123]

See also

Further reading

  • "Collaboration with Cloud Computing: Security, Social Media, and Unified Communications" by Ric Messier. ISBN: 978-0-12-417040-7. 2014.
  • "Security and privacy issues in the Portable Document Format" by Aniello Castiglionea et al. Journal of Systems and Software, 83(10), October 2010, 1813–1822. 2006.
  • "Digital Fonts and Typography" by J.H. Jenkins. Encyclopedia of Language & Linguistics (Second Edition). Keith Brown, Editor. ISBN: 978-0-08-044854-1. 2005.
  • "Desktop Publishing" by Reza AzarmsaEdited. Encyclopedia of Information Systems. Hossein Bidgoli, Editor. ISBN: 978-0-12-227240-0. July 2002.
  • "Inside the Publishing Revolution: The Adobe Story" by Pamela Pfiffner. ISBN-13: 007-6092018216. September 26, 2002.

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