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Innovation = Buying Companies

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Rainer Schubert
Innovation = Buying Companies
on Dec 12, 2014 at 1:17:36 am

Together with their financial data Adobe announced today, that it´s willing to acquire fotolia.
Hurrah?
I don´think so.
Like most of The Cloud-Vendors Creative & Marketing Apps they were simply bought.
Innovation isn´t made inhouse and to the needs of customers.
Seems that Software-Market will be dominated by the Big Ones more and more.
These Big-Ones have to act for WallStreet more than for users in my eyes.
Not easy for Competitors and a market, where a nearby monopolist can establish Software-Distribution regardless of users needs or wishes.

3,4 M Subscriptions already. But only 61% (ca 2 M) are Full-Product users (Q4/2013: 76% of 1,430 M).
Many PS/LR Contracts, it seems.
I think, WallStreet will smile.
But I also think, Adobe will never have 12 M users again.


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Andrew Kimery
Re: Innovation = Buying Companies
on Dec 12, 2014 at 3:08:40 am

I'm actually looking forward to this if Adobe can get some tight integration with regards to stock footage. Like browsing and purchasing w/in PPro and having the low-res screener footage automatically replaced by the hi-res master footage in the background. I hate dealing with stock footage so anything that makes it easier and faster is a welcome relief.

With regards to buying out other companies, that's just how it works. Look at the innovate things other companies have done and many times it starts with buying up another company (or their team, or their patents, or licensing their tech, etc.,).


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Jim Wiseman
Re: Innovation = Buying Companies
on Dec 12, 2014 at 6:39:31 pm
Last Edited By Jim Wiseman on Dec 12, 2014 at 6:44:40 pm

Yes, Microsoft has destroyed much previously very good software by buying out companies. iView Media Pro photo cataloging software for instance. Microsoft bought it and renamed it Expression. Never worked properly ever after. It even spoiled the functionality of my iView version so thoroughly that I had to reinstall the the OS and all software to get rid of it. Phase One, a much smaller company, now owns it and it works again. Need I mention what Adobe did with Freehand and other Macromedia products. The list goes on and on. Just like the Big Banks, 5 of which control most of the institutional capital in the US, too much consolidation in software is bad for the users.

Jim Wiseman
Sony PMW-EX1, Pana AJ-D810 DVCPro, DVX-100, Nikon D7000, Final Cut Pro X 10.1.1, Final Cut Studio 2 and 3, Media 100 Suite 2.1.5, Premiere Pro CS 5.5 and 6.0, AJA ioHD, AJA Kona LHi, Blackmagic Ultrastudio 4K, Blackmagic Teranex, Avid MC, 2013 Mac Pro Hexacore, 1 TB SSD, 64GB RAM, 2-D500: 2012 Hexacore MacPro 3.33 Ghz 24Gb RAM GTX-285 120GB SSD, Macbook Pro 17" 2011 2.2 Ghz Quadcore i7 16GB RAM 250GB SSD


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Andrew Kimery
Re: Innovation = Buying Companies
on Dec 12, 2014 at 7:00:57 pm

Don't forget Apple. Everything from iTunes to all their ProApps (prior to X), to the iPod's touchwheel and the iDevice's touch interface where direct acquisitions or derived from acquisitions. Hell, when Apple was circling the drain in the 90's it acquired NeXT (Jobs' company) and the NeXT software later turned into OS X.


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Bill Davis
Re: Innovation = Buying Companies
on Dec 12, 2014 at 9:05:11 pm

[Andrew Kimery] "Hell, when Apple was circling the drain in the 90's it acquired NeXT (Jobs' company) and the NeXT software later turned into OS X."

You mean when the "professional business guys" like Scully and Amelio were in charge?

Yep, those were dark days for Apple.

And when Jobs came back, so did more enlightened business practices. Nothing wrong with acquisitions for technology and IP and especially brainpower. Its what you DO with those that make the measure of any company.

So the bottom line question might be is Tim Cook more - or more like say, Shantanu Narayen?

Narayen comes out of the Electrical Engineering area. Hard science.

Tim Cook on the other hand, came out of Industrial Engineering, which to my mind, is a quite different spaces. EE is about physics and processes. It's kinda cold, really. (not saying that HE is, just the discipline he was trained in.) IE on the other hand, all has a pretty strong component of how PEOPLE have to interact with what you're building - whether that's a plant or a device.

Watching them talk, neither is anywhere near as connected to the "customer stuff" as Jobs was. But of the two, Cook's style seems to me to be more attuned to WHY you build the stuff, as opposed to just how.

Or am I wrong about that?

Anyone else?

Know someone who teaches video editing in elementary school, high school or college? Tell them to check out http://www.StartEditingNow.com - video editing curriculum complete with licensed practice content.


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Andrew Kimery
Re: Innovation = Buying Companies
on Dec 12, 2014 at 10:49:22 pm

[Bill Davis] "You mean when the "professional business guys" like Scully and Amelio were in charge? "

My Apple history is a little fuzzy, but I think it was post-Scully (who was hand picked by Jobs) that Apple really struggled from a monetization standpoint. The Newton was very forward looking, and the Mac-clones lead to much higher market penetration, but neither one was really bringing home the bacon. Apple was doing a lot but not monetizing it well. I think that's a big reason Jobs killed so many existing products when he came back to Apple.

[Bill Davis] "Watching them talk, neither is anywhere near as connected to the "customer stuff" as Jobs was. But of the two, Cook's style seems to me to be more attuned to WHY you build the stuff, as opposed to just how. "

I haven't followed either one closely enough to really say, but certainly neither one is the salesmen that Jobs' was. The Steve's RDF was no joke.


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