Adobe CEO dodges IT pricing issue at office opening

Adobe opens new Sydney office amid scrutiny of its Australian pricing
Communications minister Senator Stephen Conroy, Adobe CEO Shantanu Narayen and NSW Premier Barry O’Farrell cutting the ribbon to officially open the Adobe Australia office.

Communications minister Senator Stephen Conroy, Adobe CEO Shantanu Narayen and NSW Premier Barry O’Farrell cutting the ribbon to officially open the Adobe Australia office.

Adobe's CEO, Shantanu Narayen, was today quizzed over the Australian pricing of Adobe software products at the launch of the software company's new office in Sydney.

Adobe, along with Apple and Microsoft, has been summonsed to appear in Canberra on 22 March for a public hearing on IT pricing. The summons has been issued by a parliamentary inquiry that is examining the difference between IT and digital goods pricing in Australia compared to other countries.

Following the summons Adobe dropped the price of its Creative Cloud offering in Australia to be more aligned with its pricing in the United States.

The service-based offering previously cost $62.99 a month for an online annual subscription and has been reduced to $49.99, Adobe said in a statement.

Narayen did not provide a reason for the misalignment of prices at the office opening but instead, he drew attention to the Australian market being an attractive place to expand due to the strong adoption of cloud and digital marketing services.

"The innovative and adaptive nature of business ... [makes] it a very forward-looking, fast-moving region. The calibre of talent we draw from here is also very strong,” he said.

Adobe launched its Creative Cloud offering in April 2012 for individuals and expanded its offering to small and medium businesses in Australia last month.

The software giant's new office is located in Sydney’s CBD and is staffed by 180 employees.

It includes a demonstration facility and training centre and will be the base for Adobe’s Talent Acquisition services and Centre of Excellence for Enterprise Engagement across Asia and the Asia-Pacific region.

Update: This article originally contained a statement from an Adobe spokesperson confirming that the price cut to Creative Cloud was linked to the parliamentary inquiry. However, Adobe says the original statement is erroneous and that "the price drop is not connected with the parliamentary inquiry".

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Comments

James

1

IF Adobe et al are found guilty of IT pricing abuse, then they should not only be fined, but also be forced to pay back the differences between the US and Australian prices to their customers.

Such a strong fine would prohibit others from doing the same.

This kind of market abuse can not be tolerated, especially when the cost of delivery via the net is the same no matter where one resides.

IT Observer

2

Also, don't trust the cloud offerings, as there is no such warranties for the works created under such conditions; you or the company that has files stored on a cloud service will lose control over them.
Is better to use an installation Disc and install on a Hard Drive, your work will be safeguarded if you use commonsense and backup or save your files on an External Hard Disk.
Now, back to the matter, Adobe and other software developers should be under the Microscope for the abuse of high prices on it's line of software, To make it cheaper ditch the cardboard box put the disc(s) on a DVD Case and sell it to a more affordable price say $200 for the Creative Suite Master Collection, after all, the company has notting to lose, it will keep developing the software, making new versions small and big, and the price for such versions should be low; or do they think the individuals and business are a cash cow to feed their greedy and arrogant attitude towards its user base?
We need a fair and affordable way to buy software without being robbed big time.

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