Adobe buys Magento – What will happen in the future?

Tim .

The news that Adobe have purchased Magento for $1.68 billion is very interesting news to us. Magento was taken into private hands back in 2011 when eBay decided to focus on its core business, in a deal valued at $200 million. Someone has made a killing.

On a positive note, it’s great to get some new blood into Magento from an experienced software development house. Moving to Magento 2 has been an uphill struggle that was in development for well over two years. Magento 1’s online sites have been slow at moving over as there is no straightforward upgrade path, and any custom development in Magento 1 has effectively been lost.

Adobe have purchased Magento with the view of creating a stronger competitor against Shopify, as Magento have been losing customers to Shopify ever since they announced they were ditching Magento Go. Ironically, in 2014 Magento pushed everyone towards BigCommerce, another of Shopify’s competitors, however due to the multiple security vulnerabilities that have cropped up since, have only increased the flow of clients over to Shopify.

As a Hosting company, we have seen this completely erode the low-end hosting market for Magento and for a small business, it makes complete sense to move to a managed ecommerce solution instead of self-hosted. To be fair, Shopify do a great job and I have been recommending clients use them for a while.

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In my view, if Adobe are competing against Shopify and BigCommerce then we can expect to see a large ramp up of the self-hosted version of Magento Commerce, with similar pricing to Shopify. From what I’ve heard, Magento have never sold many Enterprise licences, so focusing on the hosted platform makes the most sense.

If that is the case, it will be interesting to see what happens to the community edition. Adobe have already said that they are keen to keep open-source going but they have a poor history of free or community-based projects.

I suspect Magento 2 will go the same way as Magento 1.9 and it will be forced into a separate open-source edition like openmage.org. This could be good for the community and perhaps will push development faster, instead of relying on core Magento developers.

The acquisition of Magento by Adobe is expected to complete in September, so I do not think we’ll see any changes to the Magento product until the end of the year. Keep an eye on this space before you make any decisions.

 

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