Lucian wrote:
Precisely, and if more people had decided to jump ship when Adobe went Ransom charges, they might have halted that effort. With that said, I knew some insiders at Adobe and the word was that less than 20% of their income came from 80% of their users, so people like you and I, and the rest of us here. It was the large corporate customers which was around 20% of their customer base, that earned Adobe 80% of their profit. They didn't really care about the general user; they knew those large corporate users were the ones they were going to be able to force to keep paying the ransom.
Years later they also tried to raise the monthly charge, and did some test groups in different countries to see what would happen when they began to raise their monthly ransom. They wanted to see what level of increase they could achieve, before the users started to jump ship. They soon saw that it was not going to work for them, so abandoned that idea, for the time being, at least.
For those that remember the start of it all, Adobe was wanting to charge $49.99 a month for their entire suite. However, most did not need the whole suite and were not signing up. They reduced it to $39.99 and still not to many takers, then they changed plans and offer the $10 just for Photoshop and that seemed to work. They were still selling LR outright. Then later, they included it as part of the Photography only package.
Precisely, and if more people had decided to jump ... (
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Corporations like the subscription model because it's easy on their accounting. They simply say they subscribe to how many Autocad or PS license for the year and that exactly how much they cost them. When they bought software they had to do the depreciation and the IRS sometimes doesn't like the way they do the depreciation. That's why many companies lease their PC's even though the cost is exactly same if they bought them outright and financed them for the same period. At the end of the lease term they also don't have to worry about disposal. But that's a good thing for me as computer companies basically get these 3 year old computers for free so they would sell them very cheap. And that what I buy. 3 year old off lease computer. I could get a new $10,000 workstation for like $1500 off lease.