Some of the most interesting information to be released in the digital arena of late has been the prospect of another merger between two of the biggest names in the industry.
Hot on the heels of SAP’s acquisition of Hybris and Salesforce’s takeover of Demandware, it has recently been announced that Adobe, a company which has long been leading the way in the design and delivery of digital experiences, will be acquiring market-leading commerce platform Magento for over a billion dollars. While this may be exciting news in the digital sector, what does it actually mean for companies which use the Magento platform?
ADOBE AND MAGENTO
Adobe 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.
HOW WILL ECOMMERCE COMPANIES USING MAGENTO BE IMPACTED BY THE CHANGE?
The end customer – the retailer – is set to benefit hugely from this merger. As Magento already has the capability to lead the market in the eCommerce field, this merger will only enable it to become more efficient and more effective, giving marketplaces which already use Magento even more features that will enable it to become the ideal omnichannel tool for trade.
Once Adobe’s services have been added, the platform will add the capacity for digital marketing, visual elements and branding for even greater functionality, flexibility, and ease of use. As soon as the features offered by Adobe are made available within the Magento platform, not only will services come at a lower price but there will be a reduced need to spend hours on designing and developing certain features. Those decreased hours will reflect directly on the price of completing any eCommerce project, giving end users even better value for their money.
While there may be some concerns that hosting and maintenance could come at a higher price following the acquisition, at present this segment remains dependent on any decision that Adobe makes in the future with regard to Magento and the business model which it settles on. It is highly unlikely, however, that any such model will deter customers and the greater likelihood is that the option which will be put on the table will increase end-user numbers and offer greater competitiveness than ever before.
WHAT CAN WE INSPECT FROM AN ADOBE ACQUISITION OF MAGENTO?
Although nothing is set in stone as yet with regard to the Adobe acquisition of Magento, the future looks extremely positive for such a merger. Companies which currently use Magento are highly likely to enjoy excellent possibilities and to benefit from an even wider range of services than ever.
With the addition of digital marketing tools to the gamut of features which are already offered on the Magento e-commerce platform, end users are set to enjoy an even more convenient and innovative experience that will increase their profits and allow for better overall flexibility. It appears that the acquisition is likely to bring only positive results with regard to the quality of the services which will be supplied to end users, allowing them to enter sales channels at an earlier stage and do so with the added advantage of having only to put in a minimal investment.
Cider is a Software Development Company based in the heart of Silicon Valley. We combine business domain knowledge and technology expertise of more than 50 development studios spread around the world. We specialize in custom web development, as well as customization of CMS based websites. We have experience in building websites across different verticals: from eCommerce to Healthcare .
We will be happy to help you analyze current state of your web property and move it to next level together. Reach out to us for a FREE Quote!