Today was a big day for HTML5. It was topic A, B, and C at Google’s big “I/O” developers conference.
(What’s HTML5? Basically, the next version of the coding for web. It aims to eliminate the need for web plug-ins like Adobe Flash. Instead, the functionality of Adobe’s Flash platform will be available right in the code of the web.)
The gradual elimination of Flash sounds like a bad thing for Adobe, but it’s actually not a huge problem. From a revenue perspective, Flash only accounted for 7% of the company’s revenue in fiscal 2009, or $231.2 million, according to Citi analyst Walter Pritchard.
While losing a revenue source is never a good thing, the widespread adoption of HTML5 can actually be good for Adobe. The company is introducing a bunch of tools for web developers to make HTML5 sites. Its Dreamweaver software, in particular, is getting an update to help web designers. There’s no reason that Adobe couldn’t even built an “export to HTML5” command in Flash. As HTML5 grows, Adobe can offer new tools, and thus drive revenue growth.
Both Flash and Dreamweaver are part of Adobe’s core business — “Creative Solutions” — which generated half of Adobe’s revenue last quarter.
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