Google Checkmate on Apple and iPad Hype: Buy Adobe

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adobeWith the new Apple iPad receiving an iHype or iYawn from the tech and media communities, a former colleague and Applephile, Patrick Kearney, suggested that Apple was crazy not to just acquire Adobe and own/integrate Flash. I counterpointed via the socialnet, that Adobe would be more integral to Google’s apps and offer a serious checkmate on Steve Jobs’ ability to close out his Apple hardware and software ecosystem.

The Google Value in Owning Adobe:

  1. Keeps Google intrinsic to Apple, especially if Bing replaces Google Search across Safari, iPhone, iPad browsers and devices.
  2. Adobe owns Omniture, an online marketing, data mining and analytics company, which it picked up in September 2009. Like Google’s acquisition of Urchin which became an invite-only Google Analytics and is now free for anyone. Omniture could be the premium or pro solution for big brands that need the stepabove solution, and of course crave CRM. It’s more behavioral, offers paid SEO across all search platforms, so it fits accretively.
  3. Launch Google lite version of Photoshop and Dreamweaver (and…?) for its Google Apps. Many people are moving over to Gimp, an open source Photoshop design app, from outdated versions of Adobe’s Photoshop. This would democratize the products, while still offering premium versions that require a monthly subscription to remove the contextual ads and continue to innovate the product features for power-users before they go mainstream and free. Think of it as R&D for the premium, paying crowd who want the full version, and then as features become common, they go to the open, Google app public. This model of lite versus full versions is working well for the Apple Apps Store, and could move to an online subscription model to avoid distribution fulfillment and other retail packaging costs.
  4. Ownership of Flash enhances YouTube’s dominance in online video. Pretty clear, Google labs up Flash internally and figures out ways to make it pay out more for its slowly monetizing video flagship. YouTube’s choice advertisers get premium Flash benefits; innovations trickle down to other top UGC performers.
  5. Google Phones benefit from mobile improvements to Flash. The Android and Nexus One become more marketable, and Google licenses Flash to the Blackberries and other mobile players.
  6. And, of course, the obvious: every media-savvy site uses Flash and it rolls up 75% of online video, plus marketers like flashy display banners, so Google owns more of the food chain - from media co’s to video players to brands and their agencies looking to stand out in a very noisy internet environment.