Is Adobe running scared of Internet upstarts such as Picnik, the free online photo editing service that has won a loyal audience of users in just a few months?

That could be one way to read statements from Adobe Chief Executive Bruce Chizen who says in 10 years all of Adobe's products will be delivered online.

Chris Gilmer at DownloadSquad writes:

Major software development companies like Adobe are starting to take note and recognize their shrinking market share. The likes of Picnik and PikiFX are emerging and growing the free online image editing space and have forced Adobe to quickly rethink their software strategy pushing them to develop a version of their popular Photoshop for online usage.

Led by Jonathan Sposato, Darrin Massena and Mike Harrington, Picnik was debating whether it would take on venture capital financing earlier this month.

On a panel that I moderated, Sposato noted that he was looking to generate real revenue so they weren't forced to take on venture capital financing or sell out before they were ready.

"We do have a little bit of some natural antibodies to giving up or baby, so to speak. We have a while yet before we have to start taking out a second mortgage or giving blood or anything. But we are open to that possibility of some day needing money and certainly we are being very sensitive to the point at which scaling becomes a hard thing for the three of us to fund. We are actually trying to race very quickly to the point where we are generating real revenue and it will be interesting to see how these lines all cross and where they intersect."