Chizen said Adobe laid the foundation for a hosted Photoshop product with Adobe Remix, a Web-based video-editing tool it offers through the PhotoBucket media-sharing site.

Like Adobe Remix, the hosted Photoshop service is set to be free and marketed as an entry-level version of Adobe's more sophisticated image-editing tools, including Photoshop and Photoshop Elements. Chizen envisions revenue from the Photoshop service coming from online advertising.

"That is new (for Adobe). It's something we are sensitive to because we are watching folks like Google do it in different categories, and we want to make sure that we are there before they are, in areas of our franchises," Chizen said.

Chizen described the introduction of Adobe Remix and the forthcoming hosted Photoshop as part of a larger move toward integrating hosted services into the company's product mix.