Wednesday, February 08, 2006


Photo-editing software as a service

We mentioned Google Picasa as a threat to Adobe's software product. Take a look at PXN8: A web-based photo editing tool (supported by Google Ads).

What do such developments mean in terms of the shifts to cash registers and locus of value?

I don't see Picasa, in its current incarnation, as a threat to Adobe Photoshop or that it shifts the cash register. The target market for Photoshop and Picasa are very different. Not many users who would spend the $650 to purchase Photoshop would be satisfied with Picasa's 12 effects and 2 or three basic fixes. It would be intersting if Adobe began offering a full version of Photoshop on the web, supported either by advertising or on a pay per use basis. I see Picasa as a "you get what you pay for" product. It's free and it only does very basic photo editing. I don't see the locus of value changing.
When more and more companies begin offering full versions of their product as a service on the web, instead of packaged software, the question of how you monetize that product (pay per use, pay per time used, advertising supported) becomes key.
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