Microsoft Shouldn't Buy Adobe: 10 Reasons Why
Microsoft Shouldn't Buy Adobe: 10 Reasons Why
by Don Reisinger
Flash Isn't Worth It
All the talk about Adobe in some way relates to its Flash platform. Flash currently powers the vast majority of videos and games on the Web. And that alone could make it a valuable company to Microsoft. But the reality is, Flash isnt all that important. Its a platform that has taken fire from all sides over the past few years. Furthermore, major players in the space, including Google and Apple, are starting to see value in its alternative, HTML5. A Microsoft acquisition would only push those companies to further support HTML5.
Other Companies Are More Viable
Microsoft might view Adobe as a viable acquisition target, but there are a number of other companies that should top that list before Adobe. Microsofts mobile division is in dire straits right now. Ballmer should go out and try to find a company in that space. He should also attempt to bolster his cloud-services division, since that is the future. Adobe simply isnt.
Old Company Syndrome
The problem with companies that were extremely successful in the past is that they tend to lose focus. Rather than try and find new ideas, they cling to history in an attempt to maintain profits. Microsoft is now one of those companies. By attempting to acquire Adobe, it would make that abundantly clear to the rest of the world. Microsoft needs to be the forward-looking software giant. Not the company that clings to the past.
It Would Call Ballmer Into Question
Steve Ballmer hasnt been the best CEO since he took over at Microsoft. Over the past decade that hes been at the helm, the CEO has watched Internet Explorers market share decline, Windows Vista get attacked from all sides and Apple become the worlds biggest technology company. Acquiring Adobe will not do any good. In fact it will only make matters worse.
Apple Would Really Keep It Out of iOS
Part of the reason why Adobe has garnered so many headlines over the past year is Apples insistence on keeping Flash out of its iOS platform. Getting Flash onto the iPhone and iPad is integral to the future success of Flash. Without it, the platforms future could be in jeopardy. Microsoft must know that. But it must also know that if it buys Adobe, Apple will be even less inclined to bring Flash to iOS. That, in turn, would make its acquisition fruitless.
Google Wouldn't Care
Microsoft has spent the last few years doing everything it can to top Google. And if the company is seriously considering an Adobe acquisition, its undoubtedly thinking about Googles recent decision to put Flash 10.1 on Android 2.2. But Microsoft is kidding itself if it thinks that Google would even care that the software giant acquires Adobe. If nothing else, Google would be happy to see Microsoft waste its money.
It's A Poor Financial Move
Inevitably, the decision to acquire another company must come down to money. And a quick glimpse at Adobes financial statements reveals that the company is not doing as well as it once did. In fact, its annual profit is down significantly year-over-year. Considering that trend will likely continue, it might not be the best idea for Microsoft to acquire the firm.
It's Not Microsoft's Focus Any Longer
Microsoft isnt necessarily just a software company anymore. As its recent focus on the Web, the mobile market and consumer entertainment has proven, Microsoft doesnt view Windows or Office as the key growth areas for its business any longer. Realizing that, how can it believe that Adobes Flash would be viable? Flash is more of the same. Its not going to deliver the growth that Microsoft is looking for.
Is Google Envy Behind It?
Microsoft needs to take a long, hard look at why it wants to acquire Adobe. As mentioned, Microsoft has serious Google envy. And its trying to do all it can to beat the search giant at something. If Microsoft realizes that its bid for Adobe is more about its hatred for Google than its desire to improve its operation, the company needs to ditch the plan. Google isnt a good enough reason to justify acquiring Adobe.
Microsoft Is Warming Up to HTML 5
Microsoft has brought HTML 5 to the Internet Explorer 9 beta. The company plans to support the standard going forward. Realizing that, how would its Adobe acquisition come into play? For now, it would seem that Microsoft would support both platforms. But if HTML 5 starts to take off, how long would it take before Microsoft makes a last-ditch effort to save face on its acquisition? Simply put, Microsoft cant have it both ways. It needs to choose Flash (by acquiring Adobe) or HTML 5, and stick with it.