Adobe announced today upgrades to their Creative Suite with CS5.5.

Here is a link to the press release:
Adobe Unveils Creative Suite 5.5 Production Premium (http://www.adobe.com/aboutadobe/pressroom/pressreleases/201104/041111AdobeCS5.5ProductionPremium.html)

Here is a link to the first Production Premium CS5.5 review, which I wrote for EventDV Magazine.
EventDV.net: The Event Videographer's Resource (http://www.eventdv.net/Articles/News/Feature/Benchmarking-Adobe-Premiere-Pro-CS5-70277.htm)

Hey Shawn, What's the reasoning behind Adobe now renting out the software...

One reason might be for big edit houses, where they might have a few dormant edit bays and when they need to hire freelancers they can rent out the software for a month or two, instead of buying whole copies....

If Adobe had rolled out the subscription plan a year ago, I believe more businesses would have switched from FCP or Avid because they could afford to buy 10-20 seats without spending $17000-34000 upfront.

Also, for a new license, it actually is cheaper to subscribe then purchase a new license and subsequent upgrades over 2 years, for example. It is $1700 for the Production Suite and $400 for each upgrade to 5.5 and then to CS6. With the subscription, it is $85 per month and upgrades are included for free. Adobe is updating every 12 months now; so, it costs $2040 for 24 months versus $2500 to purchase new and upgrades.

Btw, Adobe tested a pilot program in Australia.

Adobe is updating every 12 months now; so, it costs $2040 for 24 months versus $2500 to purchase new and upgrades.

Add 12 months to that and purchase price will be $2900 and the subscription price $3060. So your comparison is not fair. Adobe's prices are still inflated.

Overall, software prices have come down in price recently... only Adobe and Avid think they can still charge you monstrous prices. But that won't last long... Apple is going to hit them hard and as they have proven in other markets, more companies are going to follow. I also believe that with the App store, Adobe and Avid will have to join eventually and that won't be with their crazy prices.

I think the subscription model is pretty cool, but it's not for everyone and in the long run - costs you more!

Remember, you only purchase the full version once. Then you buy upgrades with each new version. So if you purchased Production Premium CS5 a year ago $1699, then you buy the CS5.5 upgrade for $399, that comes to $2098 - over 2+ years ($87 per month vs Adobe subscription of $85 per month). About break even. But now go to CS6 for say $399 more and you are at $2500 over 36+ months. ($69 per month). CS 6.5 a year later $3000/ 48 = $62.50.

Now think about this. With CS5 you had to be 64 bit, so many users had to upgrade their computer as well. What happens if CS6 or 7 requires new hardware that you don't have. You keep paying the subscription price per month to keep using the old software!

Also keep in mind that all the pricing above was based on Adobe List prices. Not street prices or additional savings you may get buying your upgrades bundled with additional software or hardware. Or including your DVINFO5OFF coupon ;-)

Disclaimer: Videoguys is an Adobe dealer. So we can't sell subscriptions.

Gary