How Will The Adobe Acquisition Of Magento Affect eCommerce Companies Which Use The Magento Platform?
ADOBE AND MAGENTOAdobe is a software company with a long history in the digital marketing industry. Having been founded in 1982, this organisation has been providing users with digital media and marketing solutions for decades, offering services and tools which enable customers to develop impressive digital content which can then be deployed across devices and media, and optimized and measured over time to boost business success. Some of Adobe’s best-known products include Flash, Photoshop, Acrobat, and Illustrator, as well as the Experience Cloud which gives users access to a fully-integrated solutions set which allows campaigns to be built, advertising to be managed, and business owners to gain deeper insights regarding their organisation. This is all achieved through powerful and unified core services which allow access to centralised assets, customer profiles, and an ecosystem of developers and partners that work in harmony to give an outstanding customer experience. Magento Commerce, a market leading web platform for B2B and B2C transactions, has been built on highly scalable, proven technology which is supported by over 300,000 developers. It offers a partner ecosystem with countless pre-built extensions for shipping, logistics, payment, and tax, giving businesses the flexibility they need to meet the unique needs of their organisation.
WHY DOES ADOBE NEED MAGENTO?Adobe’s purchase of Magento gives the company the missing piece of its e-commerce platform which enables it to function within both B2C and B2B contexts. Fitting in perfectly with the Experience Cloud, it can make Adobe more competitive while offering an all-around consumer experience and seamless digital transaction solution. Here are some of the key benefits which Adobe stands to gain from its acquisition of Magento:
- A greater ability to compete with Salesforce and SAP. Salesforce already offers its own sales, and marketing cloud offerings. As a result, when it bought Demandware back in 2016 (for over $2 billion) it acquired with it the full functionality which Adobe now hopes to gain by taking over the Magento platform. Meanwhile, SAP acquired Hybris, and it has become clear that taking the plunge into e-commerce platforms is the way forward if Adobe is to remain competitive.
- Adobe’s Experience Cloud will now be able to offer a comprehensive digital transaction solution, allowing consumers to begin a transaction with Adobe’s existing digital marketing tools and then to finalize the same transaction using the tools on Magento’s Commerce Platform.
- It is possible that the deal will bring Adobe and Microsoft towards an even closer working relationship since both companies are opposing Salesforce in this highly competitive marketplace. Salesforce is certainly a force to be reckoned with, with over $8 billion in revenue and a long-term goal to attain an annual revenue of $60 billion by 2034.
- The acquisition also looks set to give the Magento platform the edge over its competitor Oracle Commerce Cloud which markets itself as an all-in-one cloud e-Commerce platform.