I must admit that I was a little surprised when, a couple of weeks ago, Adobe announced that Creative Suite 3 Design Premium applications could be used on a subscription basis rather that the traditional purchase model. So far, Australia is the only market where this offered. It's worth noting that many software vendors use Australia as a test market (we were lucky enough to be the first market to get product activation from Microsoft).

“Available only in Australia, the Creative Suite 3 Design Premium Subscription Edition allows communications professionals and designers to have access to the latest version of the industry’s leading design suite in a new flexible payment method,” said Peter McAlpine, Australia and New Zealand country manager at Adobe. “We are excited to offer the subscription Edition to our customers in Australia first and look forward to their feedback before we consider extending it to other parts of the world.”

I resisted the urge to post on this impulsively as there was already plenty of coverage (and I'm not a fan of "me to" blogging). What I've been thinking about is whether subscription software is a good thing at all.

When I need a piece of software I walk into a shop (or browse to one), make a decision, hand over some cash or plastic and collect a box/DVD/array of strategic placed ones and zeroes. I understand that I can use it for as long as I like without having to spend any more. Subscription is different - you're effectively renting the software.

The estimated street price for the Adobe Creative Suite 3 Design Premium Subscription Edition is AU$129 per month for a 12 month contract and AU$199 per month with no contract (month-by-month payment). That's compared with a street price of about AU$2500 for purchase. We've done some further checking and learned the folowing.

The purchase price for customers converting from subscription to perpetual license will be discounted at a rate yet to be confirmed.

Why go to a subscription? For some businesses it makes sense as a way to charge customers. If you need to use a specific application for a job, you can charge the customer for that application in a quite granular way rather than having to offset a software purchase over a long period of time. On the other hand, if the client comes back in six months, you'll need to resubscribe, even if it's only for a 10-minute job. That means you'll either have to wear the subscription cost for that time or charge the customer a higher-than-normal price.

I'm wondering what the real motivation from Adobe is. Are they trying to take away the incentive to pirate their software? Is this a way to convert occasional users that would "borrow" the software into paying users? In my view, if Adobe allows "renters" to offset the purchase cost with the rental they've paid then this is a good idea.

Personally, I doubt that I'd ever rent. I prefer to pay for my software and use it when and where I want. However, I can see where this might benefit a small group of users and help Adobe with revenue protection.