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More importantly, the people who are great designers have been given more creative freedom now They can do things at a lower cost and faster than they ever could have before A lot of design work now wouldn t have been practical to try to do some other way using hand methods, but now with the ability to manipulate layers within photographs and do all this kind of really sophisticated kind of art, people can do design that they never could do before What we believed in very strongly was that the rules of quality for what was produced were not set by the computer industry, but by the publishing industry It didn t matter whether or not some guy at IBM thought it looked good What mattered was someone at Random House or Time-Life or Ogilvy & Mather or someone like that appreciated it.

I remember in the early days bringing home our first color separation work and showing it to my dad He still had an engraver s loupe He pulled out his loupe and he looked at the halftone patterns and he looked up at me and said, Not very good And I said, I know, but it s going to get better And then a few years later I brought home something that I knew was pretty good I showed it to my dad and didn t say much He looked up with a big smile on his face and said, Now that s good That was a wonderful moment Livingston: Is there anything that Adobe does now to preserve the efficiency or.

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Vanderpool: Essentially, get it from conception to Beta testing so that we could take it to a live construction company and let them use it on a limited basis Smolin: How long was it in Beta Vanderpool: I d say probably about two months with revisions and enhancements before we felt like we had a saleable product Smolin: What language was that one in Vanderpool: That was also written in CB86 the same thing that PMS-II was done in, utilizing the libraries that I d already developed there, so it was fairly easy to construct a new application using the framework that was already there Smolin: Did you do all the programming Vanderpool: I wrote the entire thing, yeah Smolin: And PMS-II as well Vanderpool: Yep.

chairs of the board is to reinforce to the current CEO, Bruce Chizen, the importance of innovation and the importance of taking some of the investment of the company and not immediately pouring it back into the current businesses. As I described earlier, as we were trying to develop our retail sales channel, people thought that was a waste of time and money. The product lines that are bringing in the most revenue believe that they have a right to all the resources of the company. Part of good management, and part of the attitude of a startup, is to recognize that, while those businesses are incredibly successful today and

you hope they ll be successful for a long time, the law of averages and experience tells you that at some point they will peak and they will probably begin to decay. So you ve got to be investing today in what your future s going to be 5 or 10 years out. We do try to maintain that attitude; we try and have projects focused on new ideas and concepts, but it s hard. So we ve done a combination of both internal investment over the years and acquisitions. We ve done several acquisitions of the style of Photoshop, where we ve seen a new idea and a new concept partially developed and we can bring in the resources of getting it to market and integrating it with other products to make it much more successful than the group could have done probably on their own.

Livingston: You and John are engineers and researchers, yet you were the main executives up until a few years ago You were obviously better at running a business than originally predicted back when you raised money Geschke: I don t think there s any mystery in running a business I think it helped that we were in our 40s, that we had worked for a variety of organizations We had worked in other companies, but tried to leave their bad ideas as proprietary to them We tried to pick the best things that we saw When we started, we wanted to build a company that we would like to work at and we kept applying that criterion.

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