Adobe Systems has announced upgrades for its flagship software packages, including Photoshop, Illustrator and InDesign, will now be available only through online subscriptions.

Adobe is the latest traditional software company to make a big bet on the cloud-based subscription model pioneered by companies such as Salesforce.com and NetSuite and now common place in the anti-virus and office software markets.

Adobe will cease selling packaged software, transferring customers to the cloud instead.

Subscription models bring in less money upfront as payment is spread over the entire period of use unlike traditional packaged software, but typically ensure more predictable recurring revenue. They also allow for product upgrades and new features to be delivered on a shorter cycle and as needed.

Upgrades will be available only through online subscriptions from June according to Paul Robson, Adobe's managing director for Australia and New Zealand.