The Biz of Coding

Adobe’s Options in the PDF battle with Microsoft

by Ujwal Tickoo on June 3rd, 2006

This post continues from my previous post Adobe threatens anti-trust suit against Micsoft over PDF integartion.

The PDF battle that is raging between Adobe Systems (ADBE) and Microsoft Corp (MSFT) is a classic example of Technology Commoditization. Xerox faced the same problem when Photo copying became so common place that several vendors started building and selling photo copying machines cheaper than Xerox. Adobe is facing a similar situation — and Microsoft is tending to perhaps take advantage of Adobe’s dilemma.

PDF an Open Standard

PDF is an open standard (the specification is available at Adobe’s Developer website)and several free to low priced solutions for creating PDF files from Office documents are available.

I don’t have the details but if Microsoft agreed to some sort of license fee to Adobe; then Microsoft would appear to be the "fair" party in first asking Adobe the rights to bundle Adobe’s PDF technology into Windows Vista and Office 2007. If Microsoft did not offer some fair license fee, then it would appear using its Monopoly power to force Adobe into a licensing agreement.

Lessons from Post Script and PCL wars

What beats me is Why would Microsoft risk this? It has faced legal issues due to its undeniable Monopoly power. It could have either bought or licensed a good PDF creation technology from a 3rd party and caused Adobe a hell *lot* of pain. Quite like the way HP created the PCL print technology making PostScript redundant (a less than $ 100 million business for Adobe now). Post Script clones are now used even by high end printing and imagesetting firms.

Learning Lessons from Past

Some companies seem never to learn lessons. Sadly, Adobe Systems seems to be committing a mistake this time around. Taking Microsoft head-on may not be a good solution — though right now Microsoft would be anxious to release Vista without further delays.

Learning a lesson from the Post Script story might prove more profitable. One solution for Adobe Systems could have been — providing limited PDF creation capability in Office 2007 and Windows Vista — prompting users to pay and purchase more useful functionality via the Office/Vista route. What do you think?

POSTED IN: Adobe, Adobe Acrobat, Competition, Marketing, Microsoft, Microsoft Office, PDF, Strategy, Windows Vista