Adobe Acquired Magento: What Magento Users Must Know

November 13, 2018 - by Manan Thakkar

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With new features and capabilities, seamless integration, more-intuitive interfaces, a wider product mix, quick and easy payment and shipping – the way we shop is changing. As technology gets rapidly integrated into the ecosystem, companies are trying hard to keep up with these ever-changing tech trends. Rather than building their own software, they are now looking to acquire solutions that already have a massive and loyal customer base. This way, companies can integrate their products and services more easily, jump the queue, and drive innovation faster.

 

With this in mind, Magento has come a long way. Starting out as simple software launched to meet the needs of a few retailers, it is now the leader in the e-commerce space powering billions. In May 2018, Adobe acquired Magento, pulling the e-commerce platform into the Adobe suite of solutions. Although the scale of Adobe’s marketing products together with Magento’s e-commerce expertise is the perfect blend for a streamlined end-to-end online retail solution, how does this acquisition affect current and future Magento users? Let’s find out!

Magento: An Introduction

Magento was launched in 2007 as a solution to overcome the challenges of outdated features that failed to meet the basic needs of e-commerce merchants. With time, the popularity of Magento has risen exponentially. It paved the way for the development of various editions including Magento Community, as well as Magento Enterprise. Since then, both editions – along with their new features, improvements, development tools, and structures – have been extremely successful. Magento assists organizations looking to start their business online or to revamp their outdated website to attract more potential customers.

Adobe Acquires Magento

The recent acquisition of Magento Commerce by Adobe in May 2018 puts both Magento and Adobe at the forefront of a tremendous opportunity. Since Adobe has leadership in content creation, marketing, advertising, and analytics, with this acquisition, it will be able to drive real-time experiences across the entire e-commerce journey. For people worrying if the Magento Community will no longer be offered, there’s good news: Adobe will continue supporting Magento’s open-source development. In fact, it aims to make it better by integrating Magento Open Source technologies with Adobe software to create an even better experience for both merchants and customers.

The Pros: How Magento Users Will Benefit

The acquisition opens up new avenues for innovation across e-commerce and is sure to enhance consumer experience like never before. By combining Magento Commerce Cloud with the Adobe Experience Cloud, the company aims to deliver a single platform which serves both B2C and B2B customers and offers a highly-personalized experience at every touch point. Since there have been no statements on how the Magento platform will be treated after the acquisition, this is how we envisage how Magento users will be benefited.

1. Easier Collaboration with Other Adobe Solutions

Although Magento has historically been the go-to e-commerce solution for small and medium businesses, the platform recently started making inroads into the enterprise space. The acquisition will enable easier collaboration with other Adobe solutions and also bring in a lot of operational maturity on how to sell into the enterprise, how to provide enterprise grade support, and more – from which Magento stands to benefit.

2. Streamlined Customer Journey Management

Together, the companies will be able to design and deliver a consistent and transformative experience across all channels. With Adobe’s expertise in design and visual content, the union will extend Magento’s business functions across inventory availability, lead time, price and promotions – surpassing design and delivery of digital experiences.

This will help simplify, streamline, and personalize the customer journey for both B2B and B2C customers across all channels. Access to advanced tools will further simplify digital content management, enabling them to share content across the enterprise with advanced workflows to review, approve, and deploy content to all sites.

3. More Opportunities for Unified Experiences

By bringing together digital commerce, order management and predictive intelligence, the acquisition promises to deliver developer-driven experiences and create more unified experiences across the customer journey. E-commerce businesses will be able to deliver more compelling digital B2B and B2C experiences, enhancing customer engagement across every touchpoint.

With content creation, analytics, marketing, and commerce integrated into one cloud platform, connected experiences across mobile, web, and social communities will be a given. Retailers will be able to get insights into customer preferences with advanced analytics to deliver targeted experiences and boost ROI.

The Cons: Potential Challenges Magneto Users May Face

In a highly competitive digital ecosystem, large enterprise application companies are driving the digital customer experience market from top to bottom. This includes providing support for marketing, commerce, personalization, and data management, in addition to content and experience management. What Adobe was missing was a strong e-commerce foothold; however, with Magento under its belt, Adobe is in a better position to compete with Salesforce, Oracle and SAP. That said, the acquisition does pose certain challenges to Magento users:

1. The Problem of Functional Overlap

In spite of the distinct features of Adobe and Magento, there are a lot of functional overlaps between the two systems – including content editing, workflows, page building, user management, search engine optimization, and themes. The competing functionality between the two solutions can put the developer experience in jeopardy and has the potential to thwart the merchant experience as well.

2. The Integration Complexity

Magento has recently been moving towards a microservices-based or “headless” architecture – a trend in digital platform architecture that is quickly gaining momentum. Adobe will undoubtedly want to accelerate this trend. However, for that to happen, the Magento platform will need to be integrated with the rest of the Adobe Marketing Cloud suite of products. There will also be a need to support truly global top-notch customers who are likely to build 100% custom experiential unified solutions – which although imperative, will be a complex task.

3. Open-Source Community at Risk

One of the main reasons for Magento’s popularity is due to its massive community. How Adobe will embrace Magento’s Open Source community of 300,000+ developers, 800+ technology partners and 350+ system integration partners has yet to be seen. If Adobe continues its efforts towards developing the community, it would be a tremendous win.

On the other hand, if Adobe makes radical changes to the Magento pricing model, it will not only limit integration but also alienate the Magento community which is the foundation of the e-commerce giant. There is also speculation that Adobe will do away with Magento’s much sought-after bug bounty program that has been offering monetary rewards to people who report vulnerabilities for the past several years.

Looking to the Future

The unification of Adobe and Magento will play a big part in the future of e-commerce. Commerce vendors such as IBM Commerce, SAP Hybris, Oracle Commerce, and Salesforce Commerce Cloud who have seasoned platforms lack the integrated CMS and marketing capabilities that Adobe will bring to market with the acquisition. Although there are many unanswered questions, the partnership will enable the two companies to sell and market their online products in one place and drive contextualized experiences. It is expected that the acquisition will mostly bring a positive change that will address the design and advertising needs of the e-commerce industry; however, there are also several fears and reservations – only time will tell if the acquisition truly benefits Magento users or challenges them.

Learn more about integrating Magento’s capabilities into your e-commerce business processes. 

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