Adobe announced on May 21 that it acquired e-commerce platform Magento for 1,68 billion dollar. It’s Adobe’s intention to add Magento Commerce Cloud to Adobe Experience Cloud, thereby offering a single platform for both B2B and B2C use.
The acquisition of Magento by Adobe is in line with the overall trend that content (Adobe) and commerce (Magento) are integrating. Customers nowadays expect a seamless user experience and every experience to be ‘shoppable’. In fact, Magento might have been lacking a bit of functionality on that side compared to its major competitors Woocommerce and Shopware.
COMMERCE MAKES SENSE FOR ADOBE’S EXPERIENCE CLOUD
At EMAKERS, we believe a consolidation in e-commerce platform technology will (need to) take place. With this move, the combination Adobe/Magento will have an almost immediate stronger enterprise offer to its joint customers like Coca-Cola or Nestle. And: Adobe is paying 1,7 billion dollar for Magento; you can expect that they are able to invest a similar amount for Magento’s further development.
Moreover, Adobe is a very strong partner and its Experience Cloud is performing very well with a 22% year-over year growth on subscription revenue. Its Q1 success was, according to Adobe, driven by its Analytics Cloud, Marketing Cloud and Advertising Cloud offerings, with emerging solutions such as Audience Manager, Campaign, Target and Media Optimizer solutions achieving strong results. We now can add Magento’s commerce capabilities to the mix.
IS THE ACQUISITION BY ADOBE MAGENTO’S LIFELINE?
Without any doubt, Magento will be able to benefit from Adobe’s advanced AI functionality (Adobe Sensei) too, starting from 2019. (The companies will operate independently until the acquisition is finalized, expected in fall 2018; an existing integration of Adobe / Magento however already exists within the Magento marketplace.)
However, in the long run existing Magento users might suffer from being part of the Adobe family. While Magento is clearly among the world’s strongest platforms, its users have been plagued by uncertainty in the past years. (First it was put aside by eBay, then it introduced Magento 2 which has experienced a much slower uptake than expected.) The acquisition will for sure have impact on Magento’s customers, although Adobe’s official FAQ on the acquisition states nothing will change until the acquisition is finalised.
Last, but not least: while Magento is open source in its core, Adobe is not. Contributors might re-evaluate if they want to be part of a new community, or rather move on to a next challenge (such as the Shopware platform). Content + Commerce sounds good, but might commercialize the community just a bit too much.