AdobeSystems Inc. (ADBE) recently expanded its lineup of cloud-based products for designers and fabricators with the purchase of Aviary. The financial terms of the deal were not disclosed.
A blog post on Aviary’s website revealed that the purchase was a natural follow-on to Adobe’s acquisition of Behance, which the company bought one and a half years back.
Established in 2007, New York City-based Aviary offers a photo-editing platform and a free Software Development Kit (SDK). This enables developers with a personalized photo editor and can be set in iOS, Android, Windows and HTML5 apps.
Adobe intends to integrate Aviary into the Creative Cloud to come out with a unique "Creative SDK", which would be much more compatible with third-party apps.
Currently under development, the Adobe Creative SDK will comprise a software library -set up to form the foundation for these third-party mobile apps while tying data and content to Adobe's flagship Creative Cloud software collection.
Creative Cloud continues to hold the key to Adobe’s long-term revenue strategy. The intention to move to the cloud is to help the company to push sales since it spreads cost for customers, which can then be encouraged to stick with Adobe.
In its third quarter earnings report, Adobe reported a steady increase in Creative Cloud and Marketing Cloud adoption.
Adobe finished the quarter with more than 2.81 million paid Creative Cloud subscriptions, up approximately 21.7% from the previous quarter.
The Creative Cloud subscription growth is being driven by its attractive pricing, and frequent product, feature and service enhancements.
Adobe intends to stimulate Creative Cloud growth in three ways: consistently transferring more desktop Adobe software customers to Creative Cloud, target new customers with tailored offerings (such as Creative Cloud for photographers), and add significant services (mobile apps built on Adobe's SDK).
Adobe currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the sector include Aspen Technology, Inc. (AZPN), Park City Group Inc. (PCYG) and PTC Inc. (PTC), all of which carry a Zacks Rank #1 (Strong Buy).
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