Monday, April 18, 2005

Adobe-Macromedia acquisition

I think this is a smart move on the part of both companies. Macromedia is reaching a point were an imminent threat from Microsoft is inevitable. Adobe on the other hand has always seen Microsoft as a threat. Coming together of these two companies gives Adobe a solid installed base of users and whole bunch of new products. Macromedia on the other hand can develop a more comprehensive strategy to counter the threat from Microsoft by being part of Adobe's suite of products. Besides, Macromedia has so many products now accumulated from so many acquisitions over the years, that its a good time to evaluate its long list of products. The only downside in my opinion is that historically large mergers have never worked. And of course, some users will suffer because Adobe is sure to end of life some Macromedia products. While Microsoft is all focused on IE and Search, its nice to see parts of the software industry joining forces to beat them in other areas.

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