Adobe’s in hot water in Australia.
Adobe’s global chief executive Shantanu Narayen has been forced to defend why his company charges Australians $1800 more for some its software when compared with what it charges in the US. Many have questioned why Adobe and others have such wildly different prices across different countries in the age of digital distribution.
I guess when you look at certain cloud software vendors, they have what you call “Emerging Market Pricing” which is pricing the software much cheaper in certain countries compared to the US and Europe. This is done to actually make the software more affordable in emerging countries where the currency is much weaker compared to the US dollar.
Not sure about Adobe though, because you would imagine for any software vendor that the software would be at its peak price in the US, not in Australia.
In a press meeting yesterday, Adobe CEO Shantanu Narayen was asked multiple times to explain why Australians need pay up to $1,400 more for Creative Suite than US residents — he didn’t. If you ever wanted to learn some skills on how to dodge a question and talk crap, here’s a one on one lesson with Shantanu Narayen which has basically created a PR disaster for Adobe.[youtube http://www.youtube.com/watch?feature=player_embedded&v=78yigV0GYGQ]
Anyway, the House Committee on Infrastructure and Communications of Australia has summoned the following organisations to appear before the Committee as part of its inquiry into IT Pricing:
Adobe may not be the only one in hot soup but probably the only one with a “clever” CEO who decided to dodge all the questions on pricing. You can view the document by the House Committee on Infrastructure and Communications of Australia here.
What do you guys think about the pricing issue?