Question-and-Answer Session
Operator
(Operator Instructions)
Your first question comes from the line of Steve Ashley with Robert Baird.
Steve Ashley - Robert W. Baird
Do you guys plan to take any steps, whether it would be marketing or promotional, to bolster the demand of CS2 as we get closer and closer to the release of CS3?
Shantanu Narayen
So, what is traditional is every time we are late in a cycle for our existing products, what we do is we continue to make sure that people who haven’t yet moved to the existing version, we do do marketing to try and make sure that we provide for them the benefits of the product, so yes, we will do what we have traditionally done, which is continue to make sure we target those who haven’t yet standardized on the platform.
As you’re also aware, with the Creative Suite, as InDesign continues to be adopted by more customers, we find them standardizing on the platform.
Finally, we also see people using video, and therefore using our higher-end bundles.
The other thing to remember is that in Q4, one of the things we will do is update the bundles with the new version of Acrobat, and that should also help the Creative customers, because the new version of Acrobat will be Mactel compliant.
Bruce Chizen
The other thing to keep in mind, Steve, is that many of our larger customers end up buying licenses, and many of them buy maintenance, so if they buy the current CS2 under the maintenance program, they actually get a free upgrade to CS3.
Steve Ashley - Robert W. Baird
Great, and just in the enterprise developer space, the strong Lifecycle performance, do you think that was tied to just government and government budget flush, or was the strength beyond that?
Shantanu Narayen
We have actually been fairly pleased with our performance in the enterprise space. What we are finding, Steve, is the message that we have been communicating about helping enterprises automate their businesses is starting to resonate. We have more and more customer references and successful customer references. The SAP relationship continues to deliver. We had a strong quarter.
As we get the combined field organization from the integration of Adobe and Macromedia, now talking about a combined message of the benefits of both Lifecycle and Flex, we think that’s also beginning to take effect, so all in all, you know, a strong quarter.
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