This is the second, and last day of this year’s analyst summit. The focus has been less on LiveCycle, and more on the Flash Platform and the SaaS offerings (“cloud,” if you prefer), Connect and Acrobat.com. Here are some highlights:

• The morning opened up with a quick overview of the Flash Platform, Adobe’s RIA offering done by David Wadhwani. With this context setting done, Geoff Cubitt from Roundarch came up to talk through several RIA applications they’d built for customers, of particular interest an Air Force application to keep track of all those planes and other equipment. The interesting part of this demo was seeing the old application that had been “modernized” into an RIA: in summary, it was terrible looking, not really even graphical. Steve Fisher from SalesForce.com was up to talk about RIAs in their land, but most of that was under embargo, so no summary for you. Steve did mention that there were over 120,000 custom apps in SalesForce ecosystem, which is a big pool to apply some RIA lipstick too, if they don’t have it already.
• In a talk that made me think back to the “hey, we got design game!” of MIX09, Adobe’s Steven Webster spoke about the consulting engagements Adobe does to get better UX into customer applications. All of it was the sort of “how to build better looking and usable applications” stuff you’d want to see. Where it hit a road-bump, of course, was in the skills gap between run-of-the-mill developers and genius designers. Put another way, the question is how you balance the cost in time and money to get highly usable UIs against the benefits you get from that work. The “poor internet application” bunch likes to jump in here, and it’s classic passionate, young developer vs. grizzled, enterprise developer framing. Those two IT folks who “almost always look and smell different,” as Adobe CIO Gerri Martin-Flickinger put it in another context. Another common discussion that hooks up here is the idea of businesses wanting to extremely short-cycle software development that has as close interaction with (paying) customers as possible. That is, never mind the boil the ocean SOA projects of old, for example, can we just get some Facebook integration to sell to our customers? That’s still sort of vague as, well, marketing positioning, but the strategic use of RIAs for companies seems to be leaning towards “for things your customers will be working with.” As with much of this type of talk, this applies to RIAs in general, not just Adobe.
• Webster was hitting up the usage of “Experience Oriented Architecture” (XOA) pretty hard, which is an interesting meme to keep on the look out for. This is in contrast to the system-centric approach, and so on. Some UX chatter there for ya.
• The rest of the afternoon was consumed by every analysts favorite topic: cloud computing. Arun Anantharaman spoke to Connect, while Erik Larson spoke to Acrobat.com. I won’t summarize the overviews they gave, but below are some highlights, esp. from Q&A.
• As ever with anything that smacks of Office, Erik emphasized a couple times that they weren’t seeking to be a drop-in replacement for Office. Instead, the Acrobat.com people wanted to focus on “core collaboration use cases,” or something along those lines. I’m never a fan of the “we don’t compete with [insert the market gorilla]”: pretty clearly, if you’re working on documents, presentations, and spreadsheets, you’re competing with other software that does the same. Sure, you may provide better features, but any given Office-using office user has a limited amount of time, and that time (translated into license-spend) is what you’re competing against.
• That said, the “core collaboration use cases” the Acrobat.com team has been coming up with are very compelling. The effect of collaborating in real-time around an office worker (or “information worker,” if you like the dressed up term) artifact seems to be speeding up how long it takes for everyone to lob in their input and thus, get to a finished artifact. You know, like a presentation. As Erik said, his team was able to put the finishing touches on the presentation he was going through (?) in a short 15 minutes because they were all there, looking at and editing it at once. This is opposed to the time-shifted collaboration office works would usually go through emailing around a copy of the presentation.
• In the cloud Q&A, James asked about Adobe’s thinking with respect to using a cloud offering as a monetizable runtime. As you may recall from the notes on yesterday, getting runtimes, containers, or just pieces of code that Adobe can collect revenue from is a key business problem for their RIA stack ongoing. As I like to tell people, while developers and even general IT folks have been trained – by open source, mostly – to get as much free, on-premise software as possible, that procurement modus operandi doesn’t seem to have spread to SaaS, managed services, and, yes, “cloud computing”…yet. Sure, the pricing may be cheap, but it’s more expensive than zero. After some back and forth, Rob Tarkoff stood up to address the general topic. “Clearly, I’m going to do more than monetizing the development tool[s],” he said. And while they may not have that monetization nailed down to a public talking point yet, he was clear that Adobe is not interested in IaaS cloud plays, saying “putting data-centers in Iceland is not in my strategic budget right now.” I’d expect to see Adobe partner with IaaS people and even PaaS folks (as they currently do with the likes of EC2, SalesForce, and Intuit). But, I’d also think there’d be some of their own PaaS tooling – a collection of common middle-ware services that you’d want in this whacky new RIA world.
• During lunch, Adobe CIO Gerri Martin-Flickinger gave her (now, I guess) annual analyst summit talk about how Adobe is using all this internally. All of the internal applications she demos are always a breath of fresh air for what you’d expect from internal applications: a nice RIA directory with pretty deep functionality to relevant back-ends, an RIA front-end for Adobe’s service desk that uses Connect to do remote trouble shooting, and so forth. Narrowing down on the service desk demo, I got to wondering how it was that Adobe IT had figured out this nice approach that the countless service desk vendors out their had (obviously) failed to deliver to them. How is that Adobe IT figured it out and built it, and all those service desk people didn’t? This isn’t any sort of back-handed commentary. The point is that making that leap to focus on “user-centric” (usability, looks pretty, simple, scenario-driven over all other concerns) vs. “system-centric” (vendor-centric, fully/overly functional, “compliance,” process, and security over all other concerns) design seems like the core issue to solve with getting more Flash Platform and Adobe adoption outside of the walls of Adobe. Adobe’s pitch is that their UI technology will build better applications – getting people to somehow value that “betterness” and put in the time and money to RIA-face their applications is the shift that, it seems, Adobe IT has internalized, but I’m not sure there’s a repeatable way to get the rest of the world to internalize that thinking and, thus, buy more Adobe kit.

• Finally, the last session of the day for me was on the LiveCycle Solution Accelerators.

  

  As the Adobe folks put it, “[s]olution Accelerators are deployable code and best practice methodologies to help customers reduce development time and increase the quality of their applications.” Another interesting angle here is that these Accelerators help glue-up the Adobe Stack to specific industry verticals. I’m not sure where in hi-tech marketing land this idea of an “Accelerator” comes from, but it’s interesting to see if in various ISV’s portfolio. Microsoft, over in the Server and Tools Business has a successful and nice revenue stream from it’s own Accelerators. IBM, of course, is going hog wild with a “bigger” approach to this kind of vertical focus, productizing “accelerators” for whole industries with its industry frameworks programs – enterprise software marketing strategy at it’s finest. For me, if you wanted to see how the LiveCycle-shaded part of the Adobe Stack is used, these are the things you’d slog through to start to get a sense.

There was another break-out session, but the majority of it was under embargo. As a teaser to other content, I recorded an interesting RIA Weekly episode with Matthias Zeller on the topic of where he’s hearing customer interest in for enterprise RIA; I should have that up soon.

Disclosure: Adobe is a client, as are Intuit and Microsoft.

Following up on the morning’s highlights, below some items from this afternoon’s Adobe Industry Analyst Summit. This afternoon shifted into the enterprise angle for Adobe, primarily around their LiveCycle suite:

• The phrase “Adobe Stack” was used a few times, which is encouraging. The LiveCycle folks are the de facto core of “enterprise” for the purposes of this analyst summit, so the LiveCycle portfolio ends up playing the core back-end, middle-ware, and workflow role. No problem there really. As presented this afternoon, the “Adobe Stack” store composed of Flash, LiveCycle, and Acrobat makes for good looking demos for document and forms centric enterprise software implemnentations. (During the second day, we’ve been seeing some examples of what this Adobe Stack looks like without LiveCycle.)
• Going over the LiveCycle suite itself, Kumar Vora outlined the document/forms workflow features, but also the three deployment scenarios for LiveCycle: on-premise, for development in the cloud (running in EC2), and running (in the cloud) as a managed service through an Adobe partnership. See my note from back in January for some more details.
• Much of the remainder of the afternoon was nicely spent on customer presentations, folks using said “Adobe Stack” for their applications. The common theme of these talks was essentially using Adobe software to make ERP software (from SAP or Oracle) less painful and even time consuming to use.
• The first case here was the “One Touch” system used in Southwick, London. The scenario here was to take all the forms – seemingly in the 100’s – that folks in the borough would have to fill out for government services, back-ended by SAP, and then do a sort of “forms mashup” for the clerk who helped people fill out all that paper-work.
• Folks from Accenture and Deloitte came up to speak to how partners were using the Adobe Stack, again, in particular to improve the usability of SAP and Oracle ERP installs. The interesting point here, pointed out by one of my fellow analysts at dinner, was that the primary attraction seemed to be the UI layers (either in Flash/Flex or Acrobat). And yet, for Adobe the primary revenue is oriented around the back-end. On the UI layer, the Flash Player is free, and Flash Builder is (relatively) cheap and a one time expense for the organization developing the “more usable” ERP front-end.
• The partner from Deloitte, Paul Clemmons, was extremely enthusiastic about Adobe: Adobe’s training is excellent, Deloitte is trying to get Adobe angled in on “virtually every ERP deal,” what Adobe offers in unique, and so on.
• Accenture’s Joel Osman spoke to a few projects that were less about putting RIA lipstick on the ERP pig. Much of his content spoke to the best practices Accenture has been ferreting out of RIA projects of late. You can see some of these points, very broadly, in the RIA sections of this Accenture presentation.
• Osman also spoke to the idea capture tool they’ve implemented in Flash and deploy for customers. Check out this IDC write-up of it being used at Wells-Fargo.
• During the Q&A with these folks, Neil Ward-Dutton asked if these programs were driving more than LiveCycle sales. In brief, the answer was not really. I’ve been wondering the same thing as it seems Adobe is in a tough spot when it comes to direct revenue for the Flash Platform: the runtime (the Flash Player) is free and Flash Builder is a relatively small chunk of change that doesn’t get multiplied per end-user adoption. Now, clearly the Flash Platform is a strategic asset for other Adobe revenue, but it leaves analysts like myself wondering if there’s some money being left on the table for lack of something more to charge for. At least they charge for the tool, avoiding the fully free stack dilemma Sun has around Java.
• Another question came up around cloud offerings and partner conflict. Does Adobe have any plans to offer cloud hosted services that would be competitive with what folks like Accenture and Deloitte offer? The answer to those kinds of questions is always “no,” but the more nuanced strategic thinking, mixed in with some comments about Acrobat.com being more SMB than enterprise centric, seems to be that Adobe is happy to have partners take care of things closer to the application-layer in the enterprise space. That’s speculation on my part, but it’s interesting to think how that differs from Microsoft where Silverlight, Azure, and Microsoft’s business applications sets them up to be more competitive in the enterprise space with partners.

Finally, I’ll leave you with this well tech-biz speak crafted quote from Tim Hickernell:

Accenture: RIA opportunity is about transactional web and rich Internet converging to rich transactional experiences.

Yow!

Disclosure: Adobe is a client, as is Microsoft.

I’m at the Adobe Industry Analyst Summit in San Jose this week. By my count, this is the 3rd year they’ve had it and the 3rd year I’ve been to it. This event is enterprise focused, so it speaks more to the use of the LiveCycle portfolio, PDF/document management, but also the Flash Platform.

Here are some highlights from the morning, the first day of the event so far:

• Adobe’s CEO, Shantanu Narayen opened up, giving an overview of Adobe with attention to enterprise concerns. He said Adobe’s enterprise business is “approximately a billion dollar business” for them.
• Also, it was interesting to hear Shantanu’s overview of Adobe’s challenges, mostly circling around The Death of Print and, less dramatically put, the transformation of traditional media to whatever’s next. Beyond the obvious from Adobe – more “engaging” delivery of content – there was mention of helping content producers track ads and otherwise figure out how to make money. Indeed, for Adobe getting traditional media to transfer their business models to (gulp) new media business is a top priority.
• Another interesting item Shantanu mentioned was that more and more (though, not a “majority” if I recall) of revenue is coming from the rest of the world (not US or EU, I guess). This is an ongoing geographic bullet point for most elder companies, starting with IBM about 2 years ago who source many of their new and interesting customer cases from China and other parts of Asia.
• Finally, one of the analysts asked something along the lines of, “so, is this cloud computing stuff going to have enough margin to replace packaged software sales?” Shantanu noted that the margin are (probably) different between packaged and cloud/SaaS software. Through-out the morning, a few other analysts have been jumping on this idea and seeing how Adobe execs respond to the idea of moving into slimmer margin sales. It’s like the open source business model discussion all over again!
• Kevin Lynch covered the new and interesting technologies Adobe has going on, through the frame of “the vectors of innovation,” or trends mixed in with technologies. These vectors were: client+cloud, social computing, devices+desktop, all sprinkled with plenty of mobile talk. The framing here was still the Open Screens Project, the idea there being the creation and use of software that works across computer, TV, mobile, and other little devices with “screens.”
• As one of the back-end/server technologies, Kevin mentioned the “Flash Widget Network,” which doesn’t seem to be listed anywhere publically. As Adobe’s Ted Patrick put it: “new service ‘Flash Widget Network’ listed under services in Flash Platform diagram. Distribute widgets to N networks with monitization.”
• While there was no iPhone reevaluations – Adobe’s position is still, “we’d love to have it on their if Apple would let it” – as Marshall Kirkpatrick outlined in a story, Kevin spoke to the Flash 10 roadmap in regards to mobile: primarily the continual effort to merge the Flash mobile and “normal” Flash players. Also, Kevin mentioned that Adobe is working on multi-touch and accelerometer features for Flash. As Jeffrey Hammond covered, after the current round of Flash/mobile work, the road-map calls for “mobilizing” Flex.
• One analyst asked about “mobile design patterns,” that is, is Adobe working on some. Kevin said they’re researching them and trying to figure them out.
• On a historical note, Kevin went over how (then) Macromedia spread Flash during the browser wars. They gave Netscape “millions” of dollars to include Flash in their browser, and then as the browser wars continue, Microsoft came to Macromedia to include Flash in IE, at no cost. And there you go, Flash in browsers.
• Next up, was pulling to focus down to enterprise concerns. Rob Tarkoff gave an overview of this silo, largely composed of LiveCycle, Acrobat, Acrobat.com, Flash Platform (including AIR). This year, as I Twittered, Adobe is doing a good job of speaking the language of enterprise design and even architecture. They have some nice looking cake & silo diagrams that feel like something corporate architects could start to relate to – I’ll have to see if I can get some screen-shots of them. Still, most of the discussion of enterprise applications built on the “Adobe stack” were very document-centric, which expected coming from PDF-land. One of the customer cases, which was under NDA, was less so, however and encouraging for sussing out the enterprise architect angle for said “Adobe stack.”
• Rob mentioned that they’re looking at lacing in some “enterprise extensions” to Acrobat.com, but are primarily focused on it being an SMB offering with a freemium model.
• I should also point out that Adobe laced in much emphasis on “collaboration” as an enterprise software imperative. It’s along the lines that you hear Cisco talking about collaboration, but not as technically details and broad as, say, IBM Lotus would get into. Their Connect product fits here well, and maybe some of those “enterprise extensions” to Acrobat.com would slip into that silo as well.

Them’s the highlights for now. (See the afternoon highlights too.) There’s good realtime coverage over in Twitter from the clutch of Twittering analysts, mostly under the tags #adobe09, but also #AIAS. Here’s a search for both.

Disclosure: Adobe is a client, and paid travel for this “jaunt.”