Our Point of View on Adobe’s Acquisition of Magento
Right from the moment Magento was sold to Private equity firm like Permira, most of the community members in Magento were sure that an acquisition is around the corner. The only unknown part was which company would acquire. When we looked at the bidders during the Demandware acquisition we had Adobe, Salesforce, Oracle and IBM bidding fiercely. So Adobe was shopping for a while.
Now that the acquisition of $1.6B is announced, where do we head in terms of the future of Magento?
After the news o4f acquisition arrived, in every single twitter thread or blog post the major point of discussion was about how the community is going to be taken care and how Adobe is going to manage the open source part of it.
If we look at every major eCommerce platform and compare it with Magento, an area where Magento will surpass every platform is “COMMUNITY”. Be it any technological product, irrespective of industry, the effect of a passionate community brings in a lot of difference. The impact of community and its contributions to shaping Magento over the years is monumental. It will take a lot of arrogance to forget all this and suppress the Magento community, which we hope will not be the case.
Adobe replied to most of the doubts through Matt Asay’s blog post, and let’s hope the community stays intact.
If you were in the Magento space for the last 2-3 years, there’s a good chance that you would have been punched, at least once, by the bugs in Magento 2. With things getting stabilized in Magento 2, this acquisition would surely raise a lot of questions in the technology perspective.
Being a solution provider in Magento we have a feeling that this would only do well for the Magento product as a whole. If you looked at acquisitions in the past few years, while some acquisitions are made for market share, the majority of acquisitions have been done for a technology transfer.
Though Magento’s tech stack is good, it is not very radical. But the market share of Magento coupled with some technology transfers from Adobe would bring in a lot of features that can propel Magento to create new benchmarks in this space.
12 years before going online and building a store was a challenge, but now in 2018 going online is not a challenge but converting your customer is a huge challenge. Providing an astounding user experience is a requirement that most retailers find it hard to fulfill. And no company in the world better understands creativity and experience better than Adobe. If blended in the right way with Adobe’s experience factor and Magento’s community this will be one hell of a cocktail.
Magento bundled with Adobe’s Experience Cloud can provide a lot in the experience factor along with Order Management, Analytics and more. For Adobe it closes a major gap with respect to eCommerce in their offering. We expect that the current way how Magento bundles its offerings especially in the cloud and their price points will be reconstructed.
Things to note
While most of the things put on a rosy picture, we have to wait and watch how this whole acquisition gets completed in Q3 of this year. We had already seen eBay, let’s hope things will be way better this time around.
While companies have great vision, on the ground level it’s the team that executes it. Mark Lavelle and his team had done a tremendous job in the past two years to improve the valuation all up to $1.6B, now we have to wait and watch how the Leadership team at Adobe welcomes and integrates the team.
For Systems Integrators and technology providers it’s another quarter on endless speculations and thought process on how this integration affects their business. All said and done, the community has taken this news in a positive mood and let’s hope this acquisition creates a next big wave in the digital commerce space.