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Adobe chief dodges questions over pricing

Ben Grubb | Feb. 14, 2013
Adobe's global chief executive has been forced to defend why his company charges Australians $1800 more for some its software when compared with what it charges in the US.

"[It] is a key part of our strategy and it's just one of an ongoing and continuous way in which we continue to look and attract more customers to the [cloud] platform," Mr Narayen said.

But he refused to say why Adobe's traditional software-based products, which many businesses and individuals continue to use, would not also get a reduction in price to make their cost comparable to what the US pays.

"The future of the Creative [Suite] is the Creative Cloud and so when we look at how we get that access to customers it's all through Creative Cloud and so that really has to be viewed as what the focus is and so the pricing moves there are very much in line with where we see the future of the company," he said.

But that answer wasn't enough for journalists, with one stating Mr Narayen wasn't answering the question.

"How can Adobe possibly justify charging up to $1400 more for the exact same software delivered in Australia delivered over the internet with no box copy compared to the US prices?" asked journalist Renai Lemay.

Mr Narayen responded by saying that Adobe "really believe[d]" that if you looked at what it had done with pricing with Creative Cloud it has resulted in "a great value" to its customers. "We think that's the future of the company and I think it's a very attractive opportunity right now in terms of pricing."

He added: "I think the message I'm trying to send all of you is that the Creative Cloud's the future of Creative and when you look at the value that customers ... are getting through the Creative Cloud, we just think that that's phenomenal value for our customers."

After further prompting to answer the question by Mr Lemay, Mr Narayen said: "All I can say is when we think about the future of what's the best offer for customers ... we think about the Creative Cloud. We think we have a great offering at a great price for customers and the value of that is there."

A minder then interrupted further questioning, saying: "So as much as we appreciate the questions I think this opportunity of [Mr Narayen] being here is a chance to also give a talk about the opening of this new office ..."

After other unrelated questions, Mr Narayen was again drawn back to pricing.

"Can you rule out cutting your prices for other non-Creative Cloud products?" journalist David Ramli asked.

Mr Narayen said: "You know we're always looking at pricing around the world and I think the meeting today is all about sharing where we're heading as a company with the Creative Cloud and the Marketing Cloud.

 

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