“If Apple buys Adobe, is the operating system market up for grabs? It doesn’t take a brain surgeon to see why. Borrowing heavily from Mr. Cringely’s terminology, there are several industry realities and stories, each having its own vector/trajectory that might lead one to seeing the importance of Adobe to Apple’s well being. Adobe owns key graphic sector applications. Meanwhile, Microsoft has a strangle-hold over Apple with Office for the Mac. Were Apple to buy Adobe, it would give Apple the leverage it needs to ensure Microsoft keeps making Office for the Mac,” John Kheit writes for The Mac Observer.
“Make no mistake, Apple is much like Blanche DuBois; it relies on the ‘kindness’ of Microsoft. At any given time, all Microsoft has to do to put Apple down like a sick pony is stop making Microsoft Office for the Mac,” Kheit writes. “Right now Microsoft will not do that for a slew of reasons, e.g., antitrust issues, Microsoft makes a boat load of money on sales of Office to Mac users, etc. Nevertheless, were it to become threatened as Apple transitions into more markets, Microsoft will not hesitate in pulling the plug on Office, and down the tubes Apple will go.”
Kheit’s “transitions” include:
• Apple’s ‘iWork’ office suite, which Apple is developing “at a glacial pace”
• Apple and Intel: the target is Windows
• Apple Media dominance: iPod+iTunes, potential future CE products
Kheit writes, “Were Apple to buy Adobe (and what the heck, maybe Quark), it would own enough key applications necessary to Windows users to thwart Microsoft. Should Microsoft threaten to pull Office from the Mac, Apple could then threaten to pull the Adobe products from Windows. This would be bad for both companies, and basically get them into a big ole game of mutually assured destruction (or at least mutually assured losses of revenue). Could Apple do this? Sure it could. Adobe’s market cap is around $17 Billion. Apple has well over $7 Billion in cash and its market cap is over $60 Billion. Apple has enough cash and stock for a buyout. And if Apple purchased a majority stake, the stock would soar for both companies; you might even see a dip in Microsoft stock. That would be a home run for Apple.”
Full article, an excellent, thought-provoking read, here.
Is Microsoft Office really that critical for Apple Mac? Seriously, would Apple’s Mac platform just up and die without future versions of Microsoft Office? Apple would have to stop doing promotions like this: Get Microsoft Office for up to 50% off when you buy a new Mac at the Apple Store, but doesn’t the Mac have a lot more going for it besides the ability to run Microsoft Office? Anyway, Apple would gain Photoshop, Dreamweaver, Illustrator, Flash, etc. if they bought Adobe. It would be a blockbuster deal, that’s for sure. What do you think?
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Related MacDailyNews articles:
Adobe to acquire Macromedia in $3.4 billion stock deal – April 18, 2005
Apple and Adobe go to war – March 26, 2003
Adobe prefers (and promotes) PCs over Macs – March 24, 2003
openoffice.org
Hammer, I read the comments to Kheit entire article, as well as all the comments to MDN’s synopsis, and I think you got it right.
Thanks for the kudos on the Hammer take. I like to add a little humor to the mix as well. What I wouldnt give for a video of Balmer having a meltdown. I run it on a loop.
Jeff wrote:
“What if….
The intel macs will run windows applications seamlessly. “
I have argued that the real reason for the Intel shift isnt about DRM or to screw IBM for not producing low power portable chips (even though those are factors n some level probably) but it has more to do with switching people to the Mac. The number one objection people have to switching to Macs is software availability and being able to run certain apps. Apple gets sround this objection by switching to Intel. Simultaneously developers have an easier time making Mac versions of their apps, Virtual PC will now run better, and this virtual invironment where Windows apps can run sans Windows comes to life.
Suddenly, the biggest objection people have to switching disappears.
Thus, the reason for the Intel switch…
and yeah DRM blah blah, IBM blah blah…something something.
I’d like to see that happen. Sure for leverage against Microsoft, but more so because I’d love to see how they’d improve the Adobe line. Macromedia has always sucked at interface. Adobe is much better, but Apple is best. Maybe GoLive would actually be worth using again!
How about Adobe buys Apple….
As far as MS Office being ‘crucial’, I don’t think so – not anymore
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Yeah, and most people on here suffer from tunnel vision.
We need Office just so that no one can say “Macs don’t even run Office” it’s like a country that doesn’t have running water..
Optional? Yeah right.. alternatives be damned.
” Is Microsoft Office really that critical for Apple Mac? “
No.
Anyone who thinks otherwise is viewing the situation for a very narrow niche, and can’t see the forest for trees, so-to-speak. The lack of perspective of such people compels me to conclude they are nothing more than the kool-aid drinking, cultists that PC apologists have been calling Mac users since the days of the Mac Plus.
I’ve been running my publishing business since 1989 and MS Office was never, ever, necessary.
BTW, I do have MS Office. I got a special deal when I bought my first OS X Mac. I thought it might have fewer problems with then current Word files I was receiving from clients. Even with plain text files, the OS 9 text editor I had been using was having issues with Word formating garbage.
AFWIW, If the “Office is necessary for the Mac to survive” crowd is right because Office is “the” essential piece of business software,then heaven help us. The constant use of that piece of dung would go a long way towards explaining the current state of the U.S. economy.
Another stupid article.
Apple has the ace in the hole over Microsoft and it’s called OSX.
MicroSoft decides not to play nice…Steve gives away OSX for Intel processors.
In the cold war we called it shared mutual destruction.
It was actually called MAD, Mutually Assured Destruction.
Damn brain farts…thanks hammer.
Office is and isn’t crucial. There are workarounds and options for users, but most computer users don’t know it. It’s the same reason people buy a known name brand over an equal or better competitor.
Coke vs. Pepsi. Coke is the “favorite,” but in blind taste tests, most choose Pepsi.
I like Coke.
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“It was actually called MAD, Mutually Assured Destruction.”
This whole thing reminds me of a certain scene in Reservoir Dogs. Let’s just hope it doesn’t end the same way.
I’ve been using Neo Office (free open source that works with Word files) for about six months now and I have zero problems with Windows compatibility.
Let MS discontinue office and we’ll have anti-trust and racketeering charges against them in two weeks.
Just let Billy “Blue Screen of Death” Gates try some of that nonesense. Go ahead Billy… just try it.
http://lostbudgie.blogspot.com/
leodavinci –
No one who works by themselves, e.g. in their own business, necessarily needs (or wants) Office. But everyone who shares and cooperates on building documents in big organizations (that are dominated by Windows PCs) has to have Office to participate and/or contribute.
Of course, it is easy not to use office, for example if everyone would save documents in RTF or some other standard format. Unfortunately, the PC world doesn’t do that and the programs that import the RTF files on the Mac (e.g. Pages, TextEdit, OpenOffice) don’t always generate something that is the same as the original – especially complex forms.
If Office went away, the Mac would still be great, but it would be relegated to “has been” status very quickly.
Office for Mac is not going to disappear anytime soon. M$ is dealing with antitrust issues across the globe and it wouldn’t take much for the USDOJ to jump on them again (hopefully with more than a wet noodle this time). So the discussion is moot. That won’t keep me from commenting, however.
Even if M$ stopped developing Office for Mac today, it would take a good bit of time for that action to begin seriously impacting current users. How often does M$ upgrade it now?? Unless M$ quickly released an Office for Windows update or patch that seriously broke the Mac/Windows Office file compatibility (which is already suspect for PowerPoint), it could easily take a year or more for the impact to become a factor to current users. I admit, however, that it could be marketed by M$ to deter potential Mac buyers.
I do not see a reason for Apple to buy Adobe. Apple has demonstrated the capability to leverage internal programming telent combined with strategic intellectual asset acquisition to develop software products that can effectively penetrate established market segments (e.g., Final Cut Pro, etc.). Aperture is a good example of a more recent Apple software product start that has long-term potential to compete with established products (although Aperture apparently has some growing to do according to discussion forums).
So the answers are: won’t happen and no.
MW ‘consider’ as in don’t bother
The antitrust government would never allow Apple to buy Adobe. End of story.
The same government would not allow Microsoft to make Office windows only. They wouldn’t wait for a law suit the judge in charge would step in and stop it before it could have an effect on Apple. End of story.
The rest is story fluff.
Even if it were available for sale, Adobe is so expensive that any benefits for Apple would be negated by the huge price. Besides, Windows Photoshop users might jump ship to other software without changing operating systems.
It would be nice to have all those graphic apps in cocoa. Just think how sweet Photoshop would be with Core Image!! Soooooooo many Mac only features! Owning Flash AND pdf would be huge-o-mungus.
I’d like to think that Apple is smart enough to beat M$ to it. I was really afraid that they were going to buy Macromedia.
Yes Microsoft Office is still critical…not for us…we are already die hard mac users….that is the reason we are posting on macdailynews….MS Office is critical for anyone switching from Windows…selling Macs for the past 3 years the first question you hear from any convert is …. “Does it run Microsoft Office.” We start saying no to that statement and people won’t switch…that simple
Adobe would sure benefit from Apple’s interface design prowess. We’d make Photoshop and everything else work better. And we’d rid the world of that abomination Permier to boot!
This is a great idea. Let’s do it!
Adobe looks like a bargain.
I think I’ll buy it myself.
Do they take American Express Black?
Yes, Microsoft Office is still an important consideration for the business workplace (and yes, there is a small, but strong, Mac presence in business).
Looking at it a different way: My small company has about 45 computers, 30 are Mac’s and the remaining 15 are Windows based PCs. Here’s the catch, the 15 PCs are ALL second machines (niche software necessary for running our business is Windows only – actually more like modified DOS only), meaning all of our employees use Macs and some have a second Windows based PC (no-one has just a PC). We need Microsoft Office compatibility to share files with others (we’re not computer geeks, so don’t tell us that it’s easy to use some other software that reads Office docs).
Now stop and think about this for a minute… Apple is moving the Mac to Intel, so theoretically, I expect that we will be able to run Windows programs at normal speeds on a Mac. If that happens, we don’t need 15 PCs, but we will still continue to buy Macs.
If there are other companies such as ours, we might see Apple’s share of the computer market increase not by only an increase in sales of Macs, but by a decrease in purchases of now unnecessary Windows PCs.
Also, I think Apple would be smart to buy Adobe… After all, someone has to fix the mess that PDF is becoming…
>>JEG wrote: Most Windows users could care less about iWork and OpenOffice. Try to convince a Windows user to come to the Mac so that they can use OpenOffice…..they’ll laugh at you.
Agreed. I’m a Mac user as well… and I still couldn’t care less about iWork and OpenOffice. It’s MS Office for me.
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>>leodavinci wrote: Anyone who thinks otherwise is viewing the situation for a very narrow niche… I’ve been running my publishing business since 1989 and MS Office was never, ever, necessary.
It’s funny how you call people narrow and then argue it from the perspective of running a publishing business, which of course not everyone does.
I was in the publishing business – well, advertising sales of a bi-monthly magazine – and EVERYONE had MS Office on their Macs.
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>>Hammer wrote: Virtual PC will now run better, and this virtual invironment where Windows apps can run sans Windows comes to life.
I’m thinking the same thing. However, it’s not a sure thing that Microsoft will port VPC for OSX/G5 over to OSX/Intel.
What if some group went the other way with it and “virtualized” OSX/Intel to run in Windows?
>>JEG wrote: Most Windows users could care less about iWork and OpenOffice. Try to convince a Windows user to come to the Mac so that they can use OpenOffice…..they’ll laugh at you.
Agreed. I’m a Mac user as well… and I still couldn’t care less about iWork and OpenOffice. It’s MS Office for me.
—
>>leodavinci wrote: Anyone who thinks otherwise is viewing the situation for a very narrow niche… I’ve been running my publishing business since 1989 and MS Office was never, ever, necessary.
It’s funny how you call people narrow and then argue it from the perspective of running a publishing business, which of course not everyone does.
I was in the publishing business – well, advertising sales of a bi-monthly magazine – and EVERYONE had MS Office on their Macs.
—
>>Hammer wrote: Virtual PC will now run better, and this virtual invironment where Windows apps can run sans Windows comes to life.
I’m thinking the same thing. However, it’s not a sure thing that Microsoft will port VPC for OSX/G5 over to OSX/Intel.
What if some group went the other way with it and “virtualized” OSX/Intel to run in Windows?
>>JEG wrote: Most Windows users could care less about iWork and OpenOffice. Try to convince a Windows user to come to the Mac so that they can use OpenOffice…..they’ll laugh at you.
Agreed. I’m a Mac user as well… and I still couldn’t care less about iWork and OpenOffice. It’s MS Office for me.
—
>>leodavinci wrote: Anyone who thinks otherwise is viewing the situation for a very narrow niche… I’ve been running my publishing business since 1989 and MS Office was never, ever, necessary.
It’s funny how you call people narrow and then argue it from the perspective of running a publishing business, which of course not everyone does.
I was in the publishing business – well, advertising sales of a bi-monthly magazine – and EVERYONE had MS Office on their Macs.
—
>>Hammer wrote: Virtual PC will now run better, and this virtual invironment where Windows apps can run sans Windows comes to life.
I’m thinking the same thing. However, it’s not a sure thing that Microsoft will port VPC for OSX/G5 over to OSX/Intel.
What if some group went the other way with it and “virtualized” OSX/Intel to run in Windows?