CS3 took some of the assets of Macromedia

Its been over two years since the Macromedia acquisition. What is your
outlook on this?
When Adobe bought Macromedia, the company was being questioned about what
its going to do with it. We had lots of ideas and plans but they were not
specific. Now were specific about our strategy around the Macromedia
acquisition. An instance is the launch of Adobe Creative Suite3 (CS3), which had
a huge impact on the market. CS3 took some of the assets of Macromedia.

What are the big business drives for the company today?
In terms of what drives the $3.1 bn, I would say the big drivers are the
Acrobat and the LiveCycle business, which is our enterprise solutions business.

What are your future initiatives?
Today, the challenge is to create compelling content across media. Our big
focus area, therefore, is getting to interact with Web and mobile. The Web is
emerging as a very powerful medium, and a great number of developers are moving
to the Web. In terms of Web, were talking about rich Internet applications.
Adobe Integrated Runtime or AIR takes the power of the desktop and binds it with
the immediacy of the Web. AIR applications, take the best of the Internet and
the desktop.

The other area is the mobile. We are making a big play around the mobile. Our
designer community is increasingly building more and more content for mobile
devices. On this front, there is Flash Lite, which is a version of Flash for
mobile devices. Presently, Flash Lite is available on around 450 mn devices and
we are targeting close to a billion by the end of 2009.

Then, there is the third strand, which is the video. A lot of content and
media companies are showing interest in the video space. Their business model
today says that I know how to make money around broadcasting. But they dont
know how to put a broadcast quality video/content on the Web and make a business
model out of it. Weve been working on the video front as well in the form of
the Adobe Media Player. Were taking flash and making it as the backbone to
video delivery on the Internet.

What kind of opportunity do you foresee in the digital media?
As per market research reports, it is estimated that between 2007 and 2010,
Internet ad spends will grow by 69% and raise its market share from 8.1% to
11.5%. Also, by the end of 2010, the Internet is likely to overtake magazines to
become the worlds third-largest advertising medium.

Shipra Malhotra

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