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Is the Creative Cloud the Best Choice for You?

Is the Creative Cloud the Best Choice for You?

Recently, Adobe released the Creative Cloud, a subscription service that will allow you to use all of Adobe’s Creative Suite applications, and more, for just $49.99 per month. The Creative Cloud is a radical deviation from Adobe’s traditional pricing structure, and a model that many think will completely change the industry. In this article we will take a look at the pricing model for the Creative Cloud to help you decide if it’s the right decision for you.

Back in 2011, before we had ever heard of the Creative Cloud, we asked our readers in an article, if they thought that Photoshop was too expensive. As you can imagine, this article inspired a passionate debate about Adobe’s pricing structure and whether or not it was fair to consumers. Back then, a lot of our readers felt that Adobe products were just too expensive, and as a result, they simply could not afford to purchase Adobe’s products.

The Creative Cloud, however, significantly reduces this barrier. Users no longer have to pay for a full license up front. They can now subscribe to individual applications like Photoshop for just $19.99 per month or purchase a subscription to the full creative cloud, which includes all of Adobe’s Creative Suite apps, and more, for just $49.99 per month. This means users can now choose the option that works best for them. They can pay for a license up front, or choose to spread out the payments over time.

This brings up an important question; which plan makes the best sense? Before we answer that question however, it’s important to first talk a bit about Adobe’s traditional pricing structure. A traditional license to Photoshop CS6 is $699. Photoshop CS6 Extended costs $999. If you needed more than one Adobe application, suites start at $1,299. This is a lot of money for the average hobbyist, or to some one just getting started in the industry; and as we said earlier, many users simply can’t afford it.

Adobe clearly needed more options for it’s consumers but how could they offer their high quality products to their users, at a reduced price, and still manage to run a profit? Well, that’s where the Creative Cloud comes in. Users can now get individual access to their products for just $19.99 per month or access to the entire Creative Cloud for just $49.99 per month. This makes Adobe products much more appealing to users who simply can’t afford the initial investment of a traditional license.

With that said, many of our readers have asked us which model makes the most sense over time. $49.99 per month sounds like a fantastic bargain but how do the numbers work out 2, 5, or 10 years from now? Well, let’s take a look.

In the charts below, we looked at a potential user’s total investment in Adobe products over time. In the first chart, we compared a traditional Photoshop CS6 license to an individual subscription to Photoshop CS6 through the cloud, over a 9-year period. We took into account the cost of an upgrade at 2-year intervals. As you can see, users who subscribe to the cloud have an advantage over traditional license holders for about 4 years. After that time, it becomes more economical to have purchased a traditional license.

So what does this mean in real numbers? It means that at the end of a 9-year period, a person subscribing to an individual subscription to Photoshop will have paid $700 more than a person who purchased an individual license and then upgraded every 2 years.

What about users who subscribed to the full Creative Cloud at $49.99 per month? The chart below compares the full Creative Cloud to Adobe’s family of Creative Suites. We looked at CS Design standard that costs $1,299 to buy and $549 to upgrade. CS Design and Web Premium which costs $1,899 to buy and $749 to upgrade, and the Master Collection which costs $2,599 to buy and $1049 to upgrade. Like our previous chart, we took into consideration an upgrade every 2 years.

Editor’s note: these numbers are based on the upgrade from CS5 to CS6.

What we found was that Creative Cloud is a far better deal that puchasing a license for the Master Collection. As you can see, at no point during the 7-year period that we reviewed would a Creative Cloud subscriber end up paying out more money than a traditional license holder.

On the other hand, Creative Cloud customers do eventually end up paying out more money than traditional CS Design Standard and CS Design and Web Premium Customers. How much time does it take? That depends on the suite that you’re comparing it to. It will take about 3 years for a Creative Cloud customer to pay more money than a CS Design Standard customer, 5-7 years for a Creative Cloud customer to surpass a CS Design and Web Premium customer.

So what does this mean in real numbers? It means that after 7.5 years, a Creative Cloud customer will have spent $1,603 more than a CS Design Standard Customer, and $403 more than CS Design and Web Premium customers. A traditional license is usually a better deal, unless you need everything included in the Master Collection.

Now that we know how the numbers work out, it’s time to make a decision. Is the Creative Cloud a good deal, or not? Well, that really depends on your perspective. How do you use Adobe’s products? Which products do you need? Are you a professional designer, a student, or a hobbyist? Is this a long or short-term investment? These are all questions that you will need to answer before you make your decision.

If you can’t afford a traditional license to Adobe’s products, then you don’t really have a choice. At $49.99, the cloud is a bargain, and your only option. You’ll be able to use their products for a low monthly fee without having to invest a lot of money up front.

If you are a student, the Creative Cloud is a fantastic deal. You can get a student discount for just $29.99 per month and get access to all of Adobe’s Creative suite products at a fraction of the cost of a traditional license. You’ll be able to evaluate the software, and decide if design is the industry you want to be in, without having to make a huge initial investment in software.

If you’re trying to learn the software but you’re not enrolled in school, the Creative Cloud is also a smart option. You’ll be able to download the software, learn how to use it, and then decide if the software is for you.

If you’re a hobbyist, it really depends on what your hobby is. If you’re a photographer who just needs Photoshop, it might be in your best interest to buy a traditional license as opposed to subscribing to an individual subscription or to getting a subscription to the entire cloud. You might also want to consider how serious you are about the hobby. Will you only be needing Photoshop for a few months, or for several years? If you only need a handful of applications, and don’t need access to everything in the Master Collection, then it might be best to purchase a license to CS Design Standard or CS Design and Web Premium. It really depends on your needs. You’ll have to decide for yourself which is the best option.

If you’re a professional designer, it depends on your needs. If you only need Photoshop, InDesign, and Illustrator then it might be a better idea to purchase a license for CS Design Standard. If you need a few more apps or want Photoshop Extended, then maybe a traditional license to Design and Web Premium is the way to go. If you need all of Adobe apps, then it seems that the Creative Cloud is the best choice.

If you’re a design firm, again, it depends on your needs and depends on what type of design that your firm does. Do you need access to all of Adobe’s products? If so, the cloud seems to be the way to go.


Conclusion

We understand that all of our readers are different and you are all looking at the Creative Cloud from a different perspective. For some of you, the Creative Cloud is a fantastic opportunity to explore everything that Adobe has to offer its users. For others, the Creative Cloud might not be a very good fit.

That’s what we love about the Creative Cloud. Adobe has realized that their users use their products in different ways, and therefore, have different needs. From our perspective, the Creative Cloud is really about adding more choices. You can choose to buy a traditional license for a large up front sum of money, or you can purchase a subscription to the full Creative Cloud for just $49.99 per month and spread out the payments over time.

Does the Creative Cloud cost more in the long term? That depends on what license you’re comparing it to. For several of the licenses, it does, for the Master Collection it does not.

So what’s the verdict? Is the Creative Cloud a good or a bad thing? Are the pricing options fair or not? In our opinion, the cloud is a fantastic new option. The design community has complained about the high cost of Adobe products for a long time. The Creative Cloud addresses those concerns in a way that is fair to both Adobe and its users. Ultimately, the Creative Cloud gives us more options, it will allow more users to earn a living off Adobe products, it will slow piracy, and hopefully make Adobe a more profitable company. It’s a win/win/win.

With that said, we would love to hear your thoughts. Do you like the new pricing model? Is the cloud the best fit for you? We would love to hear your perspective.

Editor’s note: when we originally published this article, we based our calculations off a potential upgrade from CS5.5. This produced some slightly incorrect conclusions. Since then, we updated our numbers to instead include an upgrade from CS5. This should more accurately reflect a typical user upgrade over a 2-year period.

  • yup

    Easy way to save money: JUST PIRATE THE DAMN THING.

    • http://psd.tutsplus.com/ Grant Friedman
      Author

      That would be illegal, not to mention unethical and immoral.

    • Rocky

      There are those who feed off the rest of us (maggots) and those who appreciate the benefits provided by the hard work of others and believe that they should be rewarded for their efforts in order to sustain the food chain (good people).

      • Good guy

        I’m not sure if it makes u good person if you buy it. Let’s say that one instead of buying it, transfer this money for charity. He would be good person, I think.

    • http://www.thewebdesignking.com Jacob Frank

      If you want to get serious in the design business it isn’t a posibillity in my opion. And if you’re a new to design you could use gimp.
      Adobe is improving their software every time and it’s pretty expensive, but they produce the best designsoftware and they deserve to get paid. I think the monthly painment is a big improvment.

      • Greg W

        I think that’s the whole point of Adobe reviewing/updating their pricing options. Offering a subscription to hopefully make its products more affordable and attractive to the folks who currently pirate and would rather not, but can’t afford to purchase a full license.

  • Scott Mason

    The $29.99 offer also applies to previous purchasers of a CS3 or above product. Which makes it “a fantastic deal” for alot more people then just students.

  • Guy

    I was just on the Adobe site and I am a bit confused. Adobe is on a 24 month major release schedule with mid release updates (ex: CS5.5). I looked to see what it would be to upgrade from a CS5 Master collection to CS6 Master and the upgrade cost is $1,049. The upgrade from the CS5.5 Master collection was $525. If this is the pattern then your numbers are off.

    • http://psd.tutsplus.com/ Grant Friedman
      Author

      That’s a good point. I’ll have to update my graph. My guess is that the general model will hold but let’s see…

  • http://www.celwinfrenzen.com Celwin Frenzen

    Considering I use Illustrator, Photoshop, After Effects, INDesign & Dreamweaver all on a weekly, sometimes even daily bases, I’m a big fan of the Creative Cloud. Can’t wait to order my subscription when my new offices are done and I’m ready to kick off!

  • leandro

    With this abusive prices in Brazil? Hell no!

  • Jennifer

    This is exactly the kind of comparison I’ve been waiting for before making a decision. Thank you!

  • SFnLS

    If you factor time value of money into the equation the gap between ownership and Creative Cloud subscriptions narrows considerably. Even a discount rate as low as 3% drops the NPV ownership advantage a trivial amount spread out over the nine years shown in the scenario.

    It’s pretty easy to argue that the preservation of initial cash, the predictable monthly payments and the lack of need to budget for upgrade costs more than compensate for the slightly increased total cost when money is properly valued.

    If you set the discount rate closer to 5% the NPV is essentially equal between the 9-year scenarios. As noted in the article, 5-year scenarios advantage the rental option by a wide margin even without a discount rate applied.

    This doesn’t account for any potential tax advantage to the immediate depreciation of the initial purchase if one is able to take accelerated depreciation.

    • http://www.farstudio.net Lori Cole

      Grant – This is exactly the article I wanted to read. Thank you for this elegant article.

      SFnLS – I want you to manage MY Accounts. You ‘get’ the subtleties of money management.

      Good job, both of you.

  • Kim Christensen

    Another benefit worth considering is that, with Creative Cloud, you can install on both Windows and Mac with the same license, whereas with the traditional license you must buy one for each operating system.

  • Guy

    You’re welcome

    • http://psd.tutsplus.com/ Grant Friedman
      Author

      Thank you. Appreciate you catching my error.

      • Guy

        No problem. I just happened to be doing research on this for myself. I’ll be diving into Creative Cloud soon.

  • Mark Lane

    I was a little worried about this model when I first heard about it. I have since come to embrace it and I’ve been using the Creative Cloud (CC) for a couple of weeks. I like it. I’m glad that you guys put together those charts because I was wondering how cost effective CC would be over time. I think although it’s cheaper to purchase upgrades every two years, there are a few things that attracted me to hop on the train:

    1. I have this feeling that the Creative Cloud will be the future. I think having the option is Adobe’s nice way of transitioning everyones thinking toward a new structure.

    2. I really don’t like not having the latest and greatest. I bought CS5 and then CS5.5 showed up and I wasn’t willing to shell out the cash to upgrade. Now, I’ll always have the newest version and they can push little (or big) upgrades to me sooner than waiting for a full or half number release.

    3. I own an iPad and hadn’t purchased a few of the Adobe Touch apps because they were $9.99 and I wanted them to go on sale. With CC, if I buy 3 apps, I get a month free. Since my first year of CC is only $29.99 a month, it’s like getting the apps for free.

    4. There are rumors about services and apps that Adobe will possibly add in the future. Things like Lightroom and the Digital Publishing Suite are the two I’m most excited about. I wanted to be signed up and ready to go if either of them happen.

    I’ve been happy with the my purchase so far. I also wanted to point out that the current CC model is built for individuals. Adobe is working on an enterprise model and I hope the pricing is more attractive.

  • Wes

    Don’t forget the extra value for having the ability to use their cloud service (could just as easily use dropbox though) along with being able to sync between mobile apps and the desktop ones. You also get access to Muse/Edge and a handful of other services with your subscription.

    I personally love the idea of how Adobe is doing this.

  • http://www.greasypigstudios.com Arvin

    Yes, please update the chart to reflect a yearly upgrade schedule to account for the .5 releases. A Creative Cloud Subscriber would have that added value that those who upgrade only once every two years wouldn’t have.

    • http://psd.tutsplus.com/ Grant Friedman
      Author

      That is true and receiving upgrades more frequently is one of the major benefits of subscribing to the cloud. Most people that I know however upgrade every 2 years. Some people wait even longer. For this article I wanted to compare the cloud to a traditional license with an upgrade for every major release, which happens every 2 years or so. With that said, the difference in price between an upgrade from CS5.5 to CS6 and CS5 to CS6 is about 1/2 the cost. For instance, an upgrade to Master Collection from 5.5 to 6 is $525. The upgrade from 5 to 6 is $1,049. So the math would likely work out to be roughly the same.

  • Jerry Hepperle

    Greatest thing since . . . Preordered and started using it at 12:34am and loving every minute :)

  • http://davidappleyard.net David Appleyard

    I’ve signed up to the Photoshop only cloud subscription — feels like a good enough deal to tempt me in, and it’ll be nice to stay completely up-to-date with new versions.

  • Jelmer

    What i still can’t understand is Adobe’s pricing for the same products in Europe.

    Cloud subscition over here in the Netherlands costs 61,49 euros. That is over 77 dollars. For exactly the same product! No extra shipping because it’s all digital. That’s ridiculous!

  • jelmer

    One more thing that should be taken inito account is that most designers allready have a licence suite. The initial investment has been done so one should calculate with only upgrade prices every two years. Then clous becomes a lot more expensive within the first upgrade cylce of two years, in spite of the cloud upgrade price for the first year.

    • http://www.pastel.cz Vit Kovalcik

      Exactly, I was thinking about the same thing. The calculations are correct only for those who have never bought any Adobe product.

    • Ashtangakasha

      Jelmer is correct — if you’ve already paid, your possible savings don’t start as soon. In my case, having already spent $446 for a CS6 upgrade, it seems there’s no point in subscribing to the Cloud until CS++ comes out. And once that happens, if I *do* switch to the subscription, I both gain and lose value. I gain the Cloud-specific features, but I lose the ability to stop spending money and keep using the software. I’m not sure how to factor in that last issue.

      As for the Cloud-specific features, it looks like Adobe is slowly moving things onto Cloud-ONLY status, so that eventually I may be forced to subscribe just to gain access to (for example) some of the customization and developer facilities. When that happens, I guess the pros and cons will be moot.

      But there is another issue. What happens if, for workflow or economic reasons, I can’t justify continuing the $50 monthly rental of the apps? If I stop paying, the apps are locked in 30 days (IIRC). If, six months later, I absolutely have to use some apps for a couple of months, can I turn the sub back on again? If I pay the monthly rate (which is higher than the annual rate), can I just turn it on and off on a month-by-month basis?

      It may well be that this is the best way to handle the elaborate collection of tools Adobe provides, but I have to admit it still doesn’t seem to be an obvious advantage for customers like myself.

      This article has certainly helped in evaluating the benefits, but I’d love to see it take my situation into account in some way.

  • http://www.souldgraphix.com Sam

    This is exactly the type of review I have been hunting the web for and has finally solved my question, Creative cloud or traditional license. Thanks again!

  • James

    Adobe have inflicted some pretty heavy price increases on us in the past, particularly those of us in Europe. With a conventional software purchase, you are of course free to ignore the upgrade and stick with what you already own; but for Creative Cloud users, Adobe will have them over a barrel.

  • http://robertoblake.com Roberto Blake

    The design industry is becoming more and more competitive and today we find ourselves no longer being able to be specialist, because employers can no longer afford us to be.

    With everyone looking to cut cost they need us a designers to be able to do more, and we need to able to afford having the opportunity to learn more software. Freelancers also can use this to expand the range of services they offer while keeping their overhead low.

    Students can finally afford to learn these applications more easily outside the classroom and more people who don’t want or need to pursue a traditional education can cost effectively invest in their design career/education.

    I think that its also a better business model for Adobe since it will be more inclusive. It will push more people to upgrade from their old software to the new Subscription versions because the initial cost won’t be bad for them. The nature of CS6 will reduce piracy. Now they can expand their market share without alienating people with existing Software.

    All and all this was a brilliant move on Adobe’s part. I’m enjoying Master Collection CS6 and as previous software owner, I got a lower rate $29.99/mo.

  • Michael

    I can’t find any mention of this on Adobe’s site (probably because it’s not an option), but do you know if the paid monthly fee can applied to software purchase at a future date? For example, let’s say I sign up for a year’s commitment at $50 per month. In a year, I’ve spent $600 “renting” the software. If I choose to then purchase the license for the software for Design Standard ($1,200 new), does the $600 I’ve already spent go towards that purchase?

    • http://psd.tutsplus.com/ Grant Friedman
      Author

      I don’t think that Adobe would permit this. It’s a different license. You could always call them to make sure.

    • 13thGeneral

      My question exactly. I was hoping at the end of the 1-yr commitment, that would then qualify as a purchase of the standard version – sort of a payment plan option, as opposed to paying all upfront.
      I couldn’t find anything on the Adobe site, so I guess I’ll have to call.

    • http://twitter.com/twittem Edward McIntyre

      I don’t see that advantage in this, after a year of payments the software is getting ready to be outdated. Why would you want to then own it instead of getting an instant upgrade to the latest software?

      There are many retailers that will finance Adobe software for you but under that model you are paying the amount with interest making the monthly option greatly advantageous.

  • Lou Ruiz

    My only fear is the inevitable subscription price increase once everyone is hooked on CC. Here’s hoping Adobe doesn’t get too greedy.

  • http://superdeluxesam.com Sam

    I would still love to know why Adobe places a premium on non-US users, as others have already pointed out. This seems all the more ridiculous when you consider that Typekit, now also an Adobe product, is priced at a flat rate for users everywhere.

  • http://twitter.com/departed93 ✖Δ✖

    Good for students? By far not, they are getting the worst end of the whole. The student discount does nothing because it still costs more than if a student had paid a student and teacher version for a much cheaper price for one time.

    The only favors are for design firms, agencies and people that can gain enough cash to afford it, Freelancers and so on will be having a ridiculously hard time to migrate to CC, but they won’t, because nobody is so stupid to put their future on 30-61€ per month.