Magento’s acquisition by Adobe and its Impact

Magento’s acquisition by Adobe and its Impact.

27 June 2018 min News

Earlier this June, Adobe Systems has acquired Magento Commerce, a leading provider of cloud commerce innovation across B2C and B2B industries.

What is Magento?

Magento is a “leading provider of cloud commerce innovation to merchants and brands across B2C and B2B industries”. Magento Commerce also possesses a strong portfolio of “cloud-based omnichannel solutions that empower merchants to successfully integrate digital and physical shopping experiences”.

What’s new post-acquisition?

The acquisition of Magento means that Adobe has become far more accessible to businesses, offering tremendous value to their customers, partners and developers.

Magento Commerce Cloud will now be integrated into Adobe’s Experience Cloud to offer commerce, filling in the missing piece, unifying commerce solutions and experiences across a wide range of different industries.

Is it still an Open Source?

Yes, but with some changes and a new name.  Adobe will rebrand Magento Commerce as Adobe Commerce Cloud.

Adobe will strengthen on Magento’s commitment to cloud for enterprise users, and will continue to support the fundamentals of the Open Source edition, but with some changes.

It’s believed that Adobe will continue to cultivate Magento’s open source ethos and its community engineering initiative but will also bring Magento Open Source to the cloud to compete with Shopify and BigCommerce.

How does it impact the Commerce Market?

Most of the current enterprise and mid-market commerce platforms lack the deep capabilities a CMS-driven commerce experience brings to the table.  Most commerce vendors will integrate with a CMS to provide this capability which adds complexity and cost to any implementation.

Customers evaluating commerce platforms face a number of decisions.  To compete in today’s marketplace requires building experiences that differentiate customers from their competition.

Adobe provides the marketing suite to build these experiences and with Magento integrated into the platform in the future, they will be a formidable foe for commerce vendors in the future.

Integration of Magento Commerce Cloud with Adobe’s Experience Cloud is expected to provide the following:

  • Insights into who your customers are with advanced analytics to understand customer journeys, measure ROI and optimize the experience
  • Ability to set up, test and deliver targeted experiences based on user behaviour, customer segmentation and profile data across all touch points
  • Tools to manage digital content for both commerce and brand, share content across the enterprise and advanced workflows to review, approve and deploy content to all sites
  • Tools to manage connected experiences across mobile, web and social communities
  • Ability to access commerce business functions (e.g. inventory availability, lead time, store location, price, promotions, etc.) to personalize the experience across all channel

Resolution POV

The future looks bright as Magento is a mature product with a robust network of developers and Adobe is leading the industry with innovative experience products that are changing the way we interact with digital.

The merge brings Magento’s community of 300,000 developers, 800 technology partners and 250 integration partners to the Adobe Cloud Platform.

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 Adobe will bring to market after Magento becomes part of the Adobe Cloud.

The depth of capabilities in both the marketing and commerce space will be hard to match if Adobe stays true to their reputation of assimilating Magento into their family. There are still many unanswered questions but, this will have a major impact on the commerce vendor market moving forward.

At Resolution, we are an Adobe Solution Partner and are fully capable in Magento. We are also currently working towards becoming an Adobe Certified Agency.

If you are interested in Resolution’s Magento capabilities, get in touch with our experts.

Ref: [1][2], [3]

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