Photoshop as SaaS

Photoshop has announced that they will offer a web based version of Photoshop within six months. I think this is an interesting development. Many would have pointed to Photoshop as a prime example of a desktop app that couldn’t work as SaaS. I suspect the SaaS version will not have all the power of the desktop version but on the other hand will have the key features that a majority of us non-designers use every day. And the fact that it will be free and carry’s the Photoshop name is sure to result in lots of users.

What I’m not sure about is the revenue model. Do you think they will get sufficient revenue from Banner Advertising? What kinds of ads will I get when I’m going to edit an image that will cause me to stop wanting to edit my image and click on them? With the price of Photoshop what it is wouldn’t they be more profitable if they charged say $9.95 a year for access? Or what about some type of App Exchange where you could buy additional filters or macros?

How do you think adobe could best monetize the online version of Photoshop?