5 lessons Adobe learned growing from $220M to $5B in recurring revenue

In 2013 when Adobe launched Creative Cloud, the company broke with selling boxes and refocused on selling subscriptions (software as a service). At the time, the company had about $200 million in annual recurring revenue. Today, Adobe has over $5 billion in recurring revenue.

That’s important, because from an investor standpoint, recurring revenue is twice as valuable as non-recurring. This is something that doubles its enterprise value compared to a company that has to sell a new widget every month, quarter, or year. The reason is simple: Keep your customers happy, and the money keeps flowing in. No further sales efforts are required.

The story of how Adobe managed to accomplish that has been told, but what did the company learn in the process?

Get the full story in my post at VentureBeat …