ADOBE CONTRACT RISK OVERVIEW
Adobe’s growth strategy is dependent on preserving annual spend levels and deterring attrition of licenses. As a method to support their growth strategy, Adobe uses terms and conditions to eliminate the feasibility of switching solutions or reducing annual fees. In this Adobe report, we dive into the top Adobe contract ‘Gotchas’ used to lock in customers and continually drive cost increases. The Adobe contract language that is addressed in this report include:
1. Adobe Renewal Increases & Caps
Adobe renewal language is commonly not included in agreement, often leaving customers exposed to unforeseen large price increases at renewal. We detail what Adobe renewal cap ranges we’ve observed, what Adobe contract language and specific terms pose risks at renewal, and ways to achieve protective language from unforeseen Adobe price increases in this section.
2. Adobe ETLA True-ups
Adobe is known to inflict premiums on true-ups or expansions of additional licenses on customers. This section dives into the details of where to find your add-on rates for additional licensing within an Adobe contract, how to validate if it's competitive against your current costs, and stats on the ranges of premiums ClearEdge has seen Adobe inflict on their customers.
3. Adobe "Free" Products
Adobe purposefully includes free product at very low volumes into proposals in hopes that the customer adopts it and eventually expands. However, when customers do eventually expand in these products, large premiums and non-competitive pricing are usually charged by Adobe for those "free" products. This section provides advice on the best practices when it comes to identifying free product and locking-in competitive expansion rates for these licenses.
Adobe contract terms and conditions are an integral part of their supplier strategy. Adobe will not concede to competitive terms without a strong negotiating position, because its success is tied to maintaining their standard contract language. To execute a successful Adobe deal, negotiators need to be wary of all Adobe contract risks and ways to protect their organization from future cost increases. For additional assistance on your Adobe purchase, review some of the other ClearEdge resources listed below to help plan your strategy and mitigate risk.