Adobe shocked the tech world last week when they announced they would be acquiring Figma, a sophisticated web-based design solution, for $20 billion in cash and stocks. However, it is not the purchase that is shocking – it’s the price. While this certainly isn’t the most expensive purchase we’ve seen in recent years, (think Salesforce’s acquisition of Slack), considering Figma has an annual revenue of about $400 million, it is a substantial purchase.  

The logical question then is why Adobe would pay that much for a company that isn’t generating nearly the price. Some articles on the topic are suggesting Adobe was nervous about Figma potentially taking subscribers from their own products. However, Adobe is a company that has built its legacy on creating design and media software solutions that enhance and encourage collaboration and the acquisition of Figma is to continue that goal.

Collaboration is key for Adobe

Adobe can be credited with creating the first marketing cloud – long before the other big players in cloud solutions – all in an effort to make collaboration on content and creative projects as simple as possible. And since its formation in 1982, the company has been doing just that.  

Most recently the commitment to collaboration was evident in their acquisition of Workfront in 2020. The Workfront platform provides stakeholders with common visibility into workflows, approvals, and project status for maximum visibility and collaboration. Likewise, Figma is a web design solution that lets a team collaborate on web design — and not just a team of designers, but content creators, copywriters, and other stakeholders.

Adobe’s acquisition highlights ease of access and collaboration as market drivers

The Wall Street Journal wrote an article on the acquisition highlighting concerns from Figma users that Adobe would affect the community feel of the platform for the worst. However, both Adobe and Figma said that the strong community element is part of what made Figma so valuable and attractive to Adobe – an element they intend to continue to support.  

“I do think that we can continue to have this amazing community, but I think it’s something that we have to prove,” said Yuhki Yamashita, Figma’s chief product officer. “Now is our time to show them.”

Furthermore, the acquisition demonstrates that ease of access and usability are market drivers currently. Adobe has known this and made its products easy to use with Adobe Creative Cloud – providing users with a single platform where they can access products, manage licenses, and ensure upgrades. Unlike the single version licenses of the past, today subscribers have access to the latest versions and product updates included in their Creative Cloud subscription. With upcoming integrations into Figma, Adobe will continue to support the ease of access and usability for subscribers. In doubling down on collaboration, Adobe is acknowledging the way we work now.

What this merger means for you

If you are an Adobe or Figma client, there is a high probability your software licenses will change. And as Adobe adds integrations with Figma, the licenses will continue to adapt to accommodate the changes. If you subscribe to either or both products currently, it would be beneficial to you to perform an internal audit to ensure you’re currently in compliance with your subscriptions. This will also help you determine exactly how you are using the products so that when future solutions are announced, you will know whether adopting the new solutions will be cost-effective for you and helpful for your teams.

Connor, your partner for success

As an Adobe partner, we are intimately familiar with its licensing. And as software license compliance experts, we can help you analyze your subscriptions and licenses for compliance to prepare you for future changes. The last thing you want is for your licenses to change and not even be aware of what your licenses state is currently. Without the knowledge of what your licenses state now, you are stunting your ability to negotiate and select the solutions most valuable to you.  

To learn more about our software license compliance services or to speak to an expert, please email us at slc@connor-consulting.com. 

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