Better Buy: Adobe vs. Microsoft

Adobe (NASDAQ: ADBE) and Microsoft (NASDAQ: MSFT) were both once considered aging tech giants that were running out of room to grow. However, both companies have generated fresh growth in recent years by transforming many desktop software products into cloud-based subscription services.

Adobe bundled its flagship software products, including Photoshop, Illustrator, Premiere Pro, and After Effects, into subscription-based cloud services. It also built a cloud-based portfolio of marketing, analytics, and e-commerce tools for enterprise customers.

Microsoft bundled together its Office productivity software into its cloud-based Office 365 suite, which generated stable subscription revenue instead of relying on periodic upgrades. It also aggressively expanded Azure into the world's second-largest cloud infrastructure after Amazon Web Services (AWS).

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Source Fool.com