The History of Adobe Systems

About Adobe Systems

Adobe Systems is a leading corporation engaged in the development and creation of various types of computer software. Initially, it was a company involved in printer manufacturing. Adobe Systems was founded in 1982 by Charles Geschke and John Warnock. They were programmers at Xerox PARC, with plans to continue developing and advancing PostScript.

Initially, none of the employees at Xerox PARC believed in the success of the new small company, which took the name Adobe Creek (named after a creek near Warnock's home). In the early days, there were limited finances for company development, so the founders involved their family members: Geschke's father worked on office design, and Marva Warnock designed the company logo. The first significant profit came from the PostScript program, compatible with IBM PC and Mac. A major boost to the company's success was the release of Adobe Illustrator and Adobe Photoshop in 1989, the most innovative programs at that time, catching the interest of Steve Jobs, whose company, Apple, was a major client of Adobe Systems.

Following the introduction of well-known software products like Adobe Photoshop and new versions of PostScript, the decision was made to expand the enterprise. In 1987, the European branch, Adobe System Europe, was established. Contracts were also signed in the mid-1989 with the Japanese printer manufacturer Canon.

Active Development of the PDF Format

In the mid-1990s, Adobe Systems continued to actively create new software compatible with any computer platform. The Portable Document Format (PDF) is still widely used, allowing documents to be read and printed on any computer with any software without conversion.

PDF gained significant popularity by the late 1990s, especially with the increasing accessibility and prevalence of the internet. Another popular application was Adobe Acrobat Reader, allowing users to open and view documents created on IBM PC and Mac OS.

In 1992, the company founders decided to take the next step by envisioning computers that could handle multiple formats - text, audio, images, and video files.

Adobe Systems focused all efforts on implementing this vision, acquiring numerous startups, new technologies, and hiring new employees. One significant acquisition was OCP SYSTEMS, a program capable of text recognition. In 1993, Adobe Systems introduced the world to self-editing videos and movies at home through a new program, Adobe Premiere 3.0. With the release of new software updates, new contracts were signed to supply software to globally renowned companies like Eastman Kodak and Tektronix.

Design Programs

In 1994, Adobe Systems acquired Aldus, a company specializing in software for publishing enterprises and the creator of the TIFF format. This purchase enabled Adobe Systems to refresh and enhance its workforce.

In 1995, the first web design programs were developed. Successful projects in 1997, including Illustrator, PageMaker, and FrameMaker, propelled the company to new heights and significantly increased its financial earnings. However, the refusal of Hewlett Packard to acquire a license for PostScript dealt a significant blow.

In 1998, with the release of the groundbreaking Windows 98, Adobe Systems faced a downturn as revenues dropped by $70 million. The company faced a threat of acquisition by direct competitor Quark in the publishing software sector. Consequently, several departments, including those producing publishing software and fonts, were downsized. The acquisition of GoLive was made to strengthen the market position for website processing and development.

Emerging from Crisis

In 1999, with the release of updated programs like Photoshop, Illustrator, and Adobe GoLive, Adobe Systems nearly emerged from the crisis. The launch of the newest program, InDesign, in 1999 tripled the value of Adobe Systems' shares, pushing the company's revenue to a record-breaking $1 billion.

In the 2000s, Adobe Systems stood as a major player in the software market. However, competition between Adobe Systems and Macromedia intensified. In 2000, Adobe filed a lawsuit against Macromedia over the use of patented Adobe custom menus in their programs.

The legal battle lasted years, resulting in Macromedia being found guilty and ordered to pay a $2.6 million compensation. However, a countersuit by Macromedia for the use of Adobe technologies led to Adobe Systems losing and being required to pay a $4.9 million compensation.

This fierce competition continued for several years until Adobe Systems acquired Macromedia for $3.4 billion in 2005, solidifying its position as the market leader in software. Efforts to reach an agreement with Apple faced obstacles, with Apple hindering the integration of new Adobe technologies into their devices. This standoff lasted until 2010, nearly escalating to a legal battle.

However, with the declining popularity of Adobe's Flash technology and the introduction of the HTML format for mobile devices, Adobe and Apple eventually collaborated. Today, Adobe Systems is the largest producer of software.