Traditional software companies are scrambling to deal with the Internet. Take Adobe Systems Incorporated (NASDAQ: ADBE), which is ramping its on-demand offerings.
In fact, today the company announced that it has snapped up Virtual Ubiquity. The company operates Buzzword, which is a web-based word processor and collaboration platform. The financial details were not disclosed.
It certainly helped that Buzzword has adopted a variety of Adobe technologies, such as Flash and Flex. Interestingly enough, Adobe invested in the firm a year ago.
So is Adobe trying to take on Microsoft Corporation (NASDAQ: MSFT)'s Office? Actually, I don't think so. Hey, if anything, Adobe understands Microsoft very well – and also realizes that there is still a lot of opportunity in the graphics/design market. Instead, I think Adobe is trying to use new technologies to improve its core strengths.
I had a chance to talk to Frank Zamani, who is the CEO of Caspio (which operates an on-demand web application platform). According to him:
"As Oracle Corporation (Nasdaq: ORCL)'s Larry Ellison says, in the future there will be only a handful of very large software companies. Adobe is certainly going to be one of them. According to Triple Tree, the SaaS (software as a service) market by 2009 will be 40% of the software market. The question is whether Adobe is going to leverage its fantastic brand name to expand into SaaS. This acquisition demonstrates that they are thinking in that direction. It will be interesting to watch if they will stick to document management or embark on a broader SaaS strategy."
Also, if you want to check out other acquisition deals, click here.
Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements
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