Staying competitive in the cloud is expensive. The two largest players in the industry aren't making it any cheaper.
Salesforce.com and Adobe are the largest software companies that derive all or most of their revenue from subscription-based services. It is hardly a zerosum game at this point; analysts from KeyBanc Capital estimate that less than 10% of total enterprise tech spending currently goes toward cloud software. But both companies are richly valued by investors, with stock prices that have surged more than 50% so far this year on the premise that they can continue to fuel annual growth rates of 20% or more.