“What the pandemic and the current health situation has done is that it has created yet another inflection point for everything being digital,” says Adobe CEO Shantanu Narayen. “The importance of digital in the marketplace is going to be sustainable for decades. You’re not going to put the genie back in the bottle as it relates to engaging digitally and creating content digitally.”
Digital Transformation Is A $120 Billion Opportunity
It was a good quarter all around. All of our businesses performed exceedingly well. On the Creative Cloud and the Document Cloud, not only did we have a great acquisition. in other words, new customers adopting the platform, but we really focused on engagement and demonstrating the value of our products to our customers. Even our retention levels came back to pre-COVID levels which we believe is a really good sign.
What’s happening in the world is the businesses that we’re in, namely creativity and enabling people to tell their story, what’s happening with documents and accelerating document productivity, and what’s happening associated with every single enterprise needing to engage with their customers digitally, when you add all of this up we think it’s over a $120 billion of an addressable market opportunity for Adobe.
Pandemic Was Inflection Point For Everything Being Digital
What the pandemic and the current health situation has done is that it has created yet another inflection point for everything being digital. What we will have to continue to monitor is what happens in the spending environment. But as it relates to the overall need for the kinds of solutions that Adobe provides as well as the importance of digital in the marketplace I think that’s going to be sustainable for decades. You’re not going to put the genie back in the bottle as it relates to engaging digitally and creating content digitally.
We believe that we’re in this third phase of what is happening in the enterprise. Traditionally, businesses first focused on automating the back office, and then they focused on automating the front office for knowledge workers. It’s absolutely clear that the biggest imperative that exists in the enterprise today is how do you engage with customers? This is a category that we call Customer Experience Management.
Customer Insight Is Key To Your Digital Transformation
If you’re an enterprise today and you’re thinking about digital transformation, what’s top of that stack in terms of where you have to invest is to make sure that you have insight into what your customers are doing. How are they engaging with you? What’s the profile? How do you deliver the personalized experience?
We really believe that what you’re seeing in the enterprise spend environment is that the companies that are focused on this next generation of delivering customer engagement, the customer experiences, and the insight associated with how to take the most advantage of that data, they’re going to be the secular winners moving forward.