Adobe’s Muse: Website Building for Dummies

Adobe (NASDAQ:ADBE) recently unveiled a preview of Adobe Edge, a tool that enables professionals to create Flash like interactive content and animations using HTML 5. Today, it has announced yet another tool – Adobe Muse. ^[1] Adobe Muse is a new web design and publishing tool which enables the creation of websites without writing any HTML code. It is aimed primarily at designers who don’t know how to code. Designers can now design and publish web pages by creating design mockups just as they would in tools like Adobe InDesign, Illustrator or Photoshop, with the code generation being handled by Adobe Muse. Adobe’s primary competitors are Oracle (NASDAQ:ORCL), Microsoft (NASDAQ:MSFT) and Salesforce.com (NYSE:CRM).

We currently have a $35 Trefis price estimate for Adobe, which implies a 40% upside to the current market price.

New Products To Drive Growth

Adobe’s Creative Software division generates a majority of the total revenues and accounts for more than 50% of the Trefis price estimate for Adobe. Adobe has more than 40% market share, but it has remained largely stagnant in the last couple of years.

With new products like Adobe Edge and Muse, it hopes to gain additional market share. Adobe Muse has a huge potential market which could lead to a considerable number of new sales and additional cross selling opportunities. Adobe plans to experiment with a subscription based model for Adobe Muse pricing it at $20 per month or $180 per year after the final release. It recently started offering the entire Creative Suite with a subscription option instead of the traditional one time payment model.

Check out our complete price analysis for Adobe

1. Adobe debuts Muse, August 14, 2011 [↩]