Quick Guide to Adobe licensing - Instant...

Quick guide to Adobe licensing Author: Alecsandra Vintilescu & Patrick de Veer

The objective of this overview is to provide insight into the evolution of Adobe products and to help you understand the whys and hows of Adobe’s current licensing. This document is not intended to detail everything concerning Adobe’s software licensing, but to have a better understanding of Adobe products and their software licensing rules.

QUICK GUIDE TO ADOBE LICENSING

Contents Introduction .................................................................................................................................... 3 Ways to acquire Adobe software ................................................................................................... 4 Most common products and licensing scenarios .......................................................................... 7 Desktop software ........................................................................................................................... 8 Creative cloud software ............................................................................................................... 10 Server software ............................................................................................................................ 11 Technologies ................................................................................................................................ 12 Other Adobe licensing scenarios ................................................................................................. 13 Conclusion ................................................................................................................................... 14


Introduction Adobe is one of the most popular software vendors for design and video products. And, as with most of the other software vendors, its licensing is often seen as a complex subject. But is that really true? With Adobe’s Volume Licensing Programs and cloud software, the way to acquire their products has been made easier, and has become more transparent for software users and Adobe itself. At the beginning of 2012, Adobe adopted the subscription model mainly to counteract pirated software. Photoshop had been the most pirated software and this new business model was conceived to lower that risk. It proved to work. At the beginning of 2017, Adobe announced to stop selling perpetual CS6 products. This means that both old and new customers have no other option than to subscribe to cloud if they want to use Creative Suite products. Even though Adobe products’ fans and online reviewers were skeptical about the cloud subscriptions, the cloud licensing model offers customers a better overview of their usage rights and helps them achieve cost savings, compared to the perpetual modelling. Still, the perception of most people is that “it is hard to follow the Adobe products licensing and rules around their usage rights”. On top of this, when it comes to cloud technology, you would think you automatically become compliant. This is not completely true and you must be aware that Adobe’s cloud licensing model is not entirely online based. Although you log into your Adobe cloud account using an ID and a password, the product has to be installed on your computer. Meaning that you will still need to prove your installation in case of a software compliance check.


Ways to acquire Adobe software Understanding how you can purchase Adobe software will provide you with a better understanding of how Adobe products fit within your organization. Let’s go beyond how a product needs to be licensed (license metric) to a better insight into how to best manage your licenses as assets. Adobe products can be acquired via the following licensing options:

• Volume Licensing Program: Adobe Volume Licensing (AVL) includes:

1. Transactional Licensing Program (TLP) 2. Cumulative Licensing Program (CLP) 3. Value Incentive Plan (VIP)

• Individual

1. Click-wrap, download an Electronic Software Distribution (ESD) via the Adobe store 2. Monthly subscriptions via the Adobe store

Note: Adobe had other licensing Programs like Forms Licensing Program (FLP) for their Server products and currently offers enterprise term license agreements (ETLA) for large companies. These licensing scenarios will not be discussed in detail in this paper. Over the years, Adobe Volume Licensing Programs have been designed to provide enterprises the ability to access special benefits through a volume purchase program. The programs allow a low entry to acquire licenses for all customers. For example, TLP has no minimum purchase requirement. You can purchase 1 license under TLP. This is a good progression for customers, partners and vendors. In addition, a Volume Licensing Program helps to reduce discussions on proof of ownership. Under a volume program a customer will be given access to their purchase records online, which makes it easier to manage their Adobe entitlements. For cloud purchases, the VIP program helps small and medium sized companies manage cloud licenses. There is no minimum required purchase, but the more you buy, the bigger discounts you get. One of the best things is that customers are not even obliged to manage all the licenses themselves. The reseller partners have access to the cloud console and can manage licenses on behalf of their customers. Even better, they can seize cross and upsell opportunities and provide good insight into the environment. Additionally, Adobe itself provides optimization services.


There are price differences among the different license types available. Most common perpetual license types are:

• Full license: a major release of a software application that includes new features. • Upgrade: new versions of an Adobe product license, sold at a discount to customers who own full

licenses for the existing (or previous) version of the product. • Upgrade Plan (formerly maintenance): entitles customers to all upgrades of the software they choose

to cover that are released during their coverage term, at no additional charge. This is only available under the AVL program.

Although many desktop software vendors use a similar license type, it is worth repeating how it exactly works. When you upgrade to a new version of a product, a full license will be used as a ‘base’ license for upgrading to the version you acquired the upgrade for. The combination of the ‘base’ and ‘upgrade’ will give you the right to use that latest version. Note that the full license (‘base’), you used for the upgrade is then consumed! Below are other less known license types not available to purchase:

• Post-announce Upgrade: available to customers who license an Adobe product within a specific period after Adobe announces a new version of that product. This is also called a grace period. Such customers will receive the new version of the product at no additional charge.

• Update: includes enhancements and solutions to known issues with a product, but no major new features. Customers are not automatically notified when an update is available, however it is provided to customers at no charge.

Worth emphasizing is the grace period. Once a new product version is announced, the new product is not immediately available. When purchasing an old version during the so-called ‘grace period’ the new version will be provided to you at no cost. For cloud products, it is less complex when it comes to purchasing and pricing. If larger quantities are purchased on a longer term, the discount may reach up to 15%. As soon as you enroll in the VIP program, you can control all your licenses from an ‘admin console’. Any updates or new functionalities are included in the original price. When the licenses expire, you may choose to renew your subscriptions or remove them. Partial renewal is also accepted. Of course, you can also re-negotiate your price if more subscriptions are added to your console. It is important to mention that the software purchased through non-authorized resellers may not always be genuine. This is why, in 2014, Adobe started the so called “Adobe Genuine Software Integrity Service”.


Since Adobe software has been pirated for many years, they’ve decided to reduce this risk not only by moving most of the software to the cloud, but also by providing users with this service. How does it work? Adobe includes an executable file with every product that will scan your machine to detect non-genuine software. If the installed copy is pirated, users will receive notifications and will be directed to the official Adobe website for additional information on how to proceed further.


Most common products and licensing scenarios Adobe products can be widely found on desktops and servers. Most of the products are used on different platforms like Windows, Mac, UNIX, Linux, Mobile etc. Adobe’s products are very diverse and can fall in one of the following categories:

• Creativity & design • Business solutions • PDF & E-signatures • Marketing & analytics

Keep in mind that these categories can change and this is just an example to illustrate the diversity of the products. Another side of Adobe licensing might be less obvious. Adobe sells ‘sexy’ applications that professionals and amateurs like to have and use. Good examples are Photoshop, Illustrator, Animate (the successor of Flash Pro), Dreamweaver, which enable someone to create content for personal and company use. Although Acrobat might be considered as less ‘sexy’, Acrobat Reader is available on almost 90% of the devices in the world. It is easy for a user to know which operating system they are using; however, with Adobe products it can be slightly different. As mentioned, a lot of people are not aware that a product they use is an Adobe product. ‘Sexy’ applications drive people to use it, or use parts of the cool functionality. As most of these products can be bought in retail, it is not easy to control how they enter your organization. Adobe has the advantage their technologies are well known to the public. However, compared with other major software vendors, its products address a niche market. Its licensing is not complex, but not understanding that Adobe’s licensing is important can lead to underestimating the impact of Adobe products on your network. By knowing what Adobe software is, how it enters your company, controlling it and understanding Adobe’s licensing rules will make your life easier. The following background information should give you an idea of how it works. Acrobat Reader was initially priced per user and in 1994 with version 2.0 made free of charge. As from that period, one could follow a kind of general rule for end user software: ‘de facto standard Adobe technology software (PDF, Flash, AIR) is licensed free of charge, however software used for creating content, which can be distributed over the free technology platform, requires a license fee’.


Desktop software When Adobe first announced that they would move their products to cloud, many users were mad and confused. Since Adobe has always been known as a customer friendly company, they decided to continue the support for the CS6 products for unlimited time. However, at the beginning of 2017, there was an official announcement that support for all CS6 products ended and the only way to obtain and use the products is to subscribe to cloud. Other products are still sold as perpetual. One notable example is Acrobat Standard/ Pro which is sold both as perpetual and cloud. Other perpetual products are Captivate, ColdFusion, Photoshop and Premiere Elements. The general license metric for desktop software is ‘per installation’. Meaning you may install and use one copy of the software on your computer. Although this is a quite easy metric and applies to most of the desktop products, there are some exceptions worth remembering. The nature of Adobe products is that once you use the product’s functionality, you want to make it available for your entire organization. PDF generation or collaboration are typical functions that you would want to extend to a wider range of users. Instead of rolling out the desktop software, some choose to deploy the software on a server. Technically this creates issues; however, license-wise when you deploy on a server you cannot only count the installation on that server but all users. The total number of users (not the concurrent number of users) able to use the software on this server(s) may require a license. Each free and payable product has its End User License Agreement (EULA), which states rules about how you can use and/or are required to count the licenses. The software license section is one to read. As each product has a EULA, user rights may differ per product. Adobe provides a source of EULAs at their site. Be aware that the site does not show historical EULAs. Obsolete products cannot be purchased anymore i.e.: you can only acquire the version that is available at the time of purchase. As from CS2 for Creative Suite products, the EULA states that you are allowed to keep and use an older version on your computer. For other and CS products before CS2 you had to remove a previous version when installing an upgrade. By subscribing to cloud, you can also keep the old versions of software on your computer. Most products can upgrade from at least three versions back - this rule is still available for Captivate, RoboHelp, ColdFusion and a few other products. Photoshop Elements/ Premiere Elements can upgrade from the oldest purchased version.


Acrobat Pro perpetual can upgrade from one version back if purchased after May 2013. Some licensing complexity around the desktop products was mainly related to Creative Suite products. Since Creative Suite products are available only as subscription, this subject is treated in the next chapter, Creative Cloud Software.


Creative cloud software Cloud software includes creative solution products, document cloud and digital marketing products. Adobe’s Creative Cloud suites include the entire collection of desktop apps, from Acrobat Pro to Photoshop and Audition. Products are also sold separately as single apps. Most of the apps are dedicated to creativity and design, used to create content. The license metric for Adobe’s cloud software is ‘per user’, as opposed to the perpetual software that requires a serial number that ties usage to a particular device. Customers may currently choose from Creative Cloud for Individuals, Creative Cloud for Teams and Creative Cloud Enterprise, one major difference between them being the deployment. Creative Cloud for Teams (CCT) allows users to administrate their licenses on the Adobe console. All apps’ deployment information is collected in one single place and seats can be assigned and transferred at no additional price. Only one license can be deployed for each user. It is important to note that users can use the same products at the same time. Additionally, Creative Cloud Enterprise (CCE) allows employees inside an organization to activate a second copy of software on their portable or home computer, as long as they share the same Adobe ID and are not used simultaneously. There is no need for an additional license on the end user’s part. Also, licenses can be reassigned from old users to new users. The feature is important for organizations where employee numbers fluctuate constantly. This named license deployment is useful because you have centralized compliance management and it gives more flexibility inside an organization.


Server software Through acquisitions of Jetform/Accelio in 2002 and Macromedia in 2005, Adobe entered the Enterprise Software market and started to offer server products such Adobe Central Pro Output Server, Adobe Forms Designer, and Adobe LiveCycle. With the introduction of Server products, Adobe’s licensing metrics was extended. In addition to ‘per installation’, other metrics were made available such as CPU, User, Server, Document, Form, Set (2 CPUs). Adobe used to sell these products through their Forms Licensing Program (FLP) program. During the early 2000s, Adobe used to also have the Site License Program (SLP), with this change it has been made easier for customers to just choose a TLP or CLP. Later, server products were migrated from LiveCycle to Adobe Experience Manager (AEM). As of 2017, support was ended for LiveCycle ES4 and customers can purchase only AEM products which have improved functionalities.


Technologies Adobe’s first products were postscript and fonts. Although fonts are still installed on your computer, postscript is a technology to print in high quality. This technology has been adopted by the industry quite rapidly. As for licensing postscript software, end users normally would not directly have to acquire a license. These technologies have been included in hardware and software. Over the years, Adobe has further developed technologies that are not directly related to a licensing model for software users. In 1993, Adobe introduced the Portable Document Format (PDF), which is still used by many applications. It has been adopted widely and was finally published as an open standard in 2008. Two other technologies are Flash and AIR which emerged after the Macromedia merger. Although all these technologies do not have a direct licensing requirement for software end users, it is important to understand how they relate to the products that require a license. PDF and Flash are vastly deployed on most desktops all over the world. Each of them reaches more than 89% penetration on any device globally. Flash and Acrobat Reader, the products that facilitate showing content via these technologies, are licensable products, however free of charge. Due to this popularity, many people think Adobe products are free, including the products Flash Pro and Acrobat Standard/Professional that help to create content. Remember to apply the general rule of thumb here. The misconception many people have that Adobe products are free is not a strange one, but it is wrong. Ignoring that your company has installed Adobe products requiring a license is also a dangerous situation with possible side effects. Remember: ‘de facto standard Adobe technology software (PDF, Flash, AIR) is licensed free of charge, however software used for creating content, which can be distributed over the free technology platform, requires a license fee’.


Other Adobe licensing scenarios Products in Cloud and Server are not the only way of using the functionality of Adobe software. Adobe is offering marketing & analytics tools to a broader audience. The specific terms for each of these services can be found on the website. In general, the license models for these services are per subscription and very customizable. For desktop products within the Acrobat, Platform, Print & Classic business units, different levels of support are offered to help you take more advantage of the products you acquired. Support Plans are not to be mixed with the Upgrade Plan. Adobe Upgrade Plan ensures that you have the latest version of the product for the period you purchased the Upgrade Plan for. The benefit of this is that it is calculated upfront, and that Adobe automatically will provide the new release to you. For all cloud subscriptions, things are less difficult because the support is ongoing until the agreement ends. Also, updates and new releases are available at no extra cost. It depends on the buying program if support is limited to one year or the basic 3 years within the ETLA.


Conclusion Providing more information on the background of Adobe products and some rules will hopefully allow you to understand today’s essentials of Adobe licensing. With the simplification offered by the cloud subscriptions and volume buying programs you can get a better insight into your license rights. With some basic knowledge on Adobe technologies and free products you quickly increase your understanding of licensable Adobe products. You have seen that there can be some misconceptions. With the combination of the very diverse product stack of Adobe they can possibly enter your organization uncontrolled. In the end Adobe, like other vendors, will consider that it is your responsibility to manage. Adobe continues to provide low entry licensing programs and controls such as activation for you to be in control. Full detailed information around the volume licensing program is very clearly explained on the Adobe website. Additionally, Adobe Licensing Centers / resellers will be able to help you find the most optimal way to purchase.

©2017 B-lay BV. All rights reserved.


About the author – Patrick de Veer "When you think you are fully in control, that is the exact moment to find proof you are wrong…" Patrick is co-founder of B-lay. He brings a vast experience from his previous roles in Oracle License Management Services (LMS) and Adobe License Compliance Services (LCS) to create transparency to the licensing market. In addition, he leverages his IBM and SAP knowledge gained throughout the years to help our customers better understand and manage their software licenses. Patrick holds a bachelor's degree in Business Economics and IT from the Hogeschool Utrecht in the Netherlands. Contact Patrick: [email protected] About the author – Alecsandra Vintilescu “Straight ahead you can’t go very far” – Antoine de Saint Exupery Alecsandra has over 4 years of experience in License Management. She worked extensively in Adobe’s License Management Department supporting sales and helping audit consultants to conduct software license compliance reviews. Now, Alecsandra advises organizations how to optimize the purchasing process and usage of software licenses. Alecsandra holds a bachelor’s degree in Economics and a master’s degree in International Business Management from Bucharest University of Economic Studies (ASE). Contact Alecsandra: [email protected] We share our knowledge, so you can focus on the facts! Do you want to know more about different related license management topics, we have a selection of white papers available through www.b-lay.com. If you are in need of extra expertise and a structured approach, feel free to contact B-lay. We will help you make software compliance an exciting opportunity to improve your business! About B-lay B-lay is a specialist in software license management and provides services around software compliance, software audits, software asset management tools and insight in software spend. Our services offer organizations worldwide insight into the risks associated with software licenses, help prevent license compliance issues and help create considerable cost savings by optimizing their licensing position. B-lay was founded in 2008 and has offices in the Netherlands, Romania and the US. B-lay BV | Maliebaan 79 | 3581 CG Utrecht | The Netherlands | [email protected] | www.b-lay.com | +31 88 0233 700

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