The e-commerce industry was caught by surprise when Abode announced in mid-2018 that it planned to acquire Magento for $1.68 billion. The news saw an almost instant drop in Shopify’s shares, but how else has this purchase affect the e-commerce industry? If you are a Magento CMS user, you might be wondering what the continuing impact of this purchase will have on your online store.
Magento Hosting Customers
More than 300,000 websites take advance of Magento hosting. Many of the companies that take advantage of Magento hosting tend to be smaller or mid-sized companies. People who utilize Magento hosting might have a lower budget, so they might have been worried when Adobe took over the company.
Magento CMS has its roots in open source, which is where many of its developers came from initially. In fact, many Magento hosting users tend to rely on open source alternatives like Joomla, Drupal, and WordPress to help manage their content. That means that many are not looking for an increase in price in the Magento CMS.
Magento has already raised some of its licensing costs with the release of Magento 2.0. Unfortunately for the Magento CMS, this means that some of its users have flocked to cheaper alternatives like the WordPress plugin like WooCommerce and others.
Magento Hosting Open Source
Many Magento hosting users have been nervous that Adobe will not continue to support or invest in Magento Open Source. However, Adobe’s development team has since tried to settle these fears. The Magento hosting customers can expect to still have access to the innovation of the Open Source community.
Impact On E-commerce Platforms
WooCommerce, a WordPress-plugin, Shopify, and other popular e-commerce hosting platforms have been affected by the acquisition of the Magento CMS by Adobe. WooCommerce, Shopify, and Magento are the three most popular e-commerce solutions. While some Magento hosting users might decide to stay with the Magento CMS, others might flock to other e-commerce hosting providers because of the uncertainty.
Impact on the E-Commerce Market
The Magento CMS has a current batch of partners who are also affected. Integrators, agency partners, and plugin vendors will feel the ripple effects. While many of the larger partners will most likely already work with Adobe, the smaller ones who don’t will have to make a decision about what market share they want. Because this offering might mean that they will have to re-engineer many of their products, they might choose to focus on the lower to a mid-range segment of the market and choose not to be compatible with Magento hosting. Many of them might choose to flock to other more accessible eCommerce hosting alternatives like WordPress.
This change might lead to some uncertainty in the eCommerce hosting market, but it will also create an opportunity for Adobe’s competitors. Some of its competitors like WordPress might try to disrupt the market and snatch some of Adobe’s partners away from them.
Adobe Commerce Cloud
Earlier this year, Adobe announced that it is launching Commerce Cloud, which builds on its acquisition of the Magento CMS in 2018. Basically, Adobe Commerce Cloud is a fully managed cloud-based version of the Magento hosting platform. It will fully integrate with the rest of Adobe’s tools.
What this means for Magento hosting is an extension of their platform. Magento hosting users will see that there are additional features like a dashboard to monitor your e-commerce site better. The Amazon marketplace is integrated so Magento hosting users can directly manage the Commerce Cloud interface. This integration also makes it easier for eCommerce hosting users to synchronize their product catalog, inventory, and order information across all their challenges. All Magento hosting users can manage all of their orders directly through the Adobe Commerce Cloud.
The Abode Commerce Cloud is essential because it helps to close the last gap in Abode’s portfolio. It also means that Adobe can completely understand its interactions with their content to learn better what their customers want and need. In addition, the Adobe Commerce Cloud is an all-in platform that it's flexible, scalable, and fulfills the needs of its Magento hosting users.
This service is a fully managed cloud, so you won’t have to purchase a separate, 3-party Magento hosting plan. Adobe takes care of every for their Magento CMS developers. This might mean that Magento hosting services will see a decrease in demand for their higher-end Magento hosting plans.
The Adobe Commerce Cloud, while is it more expensive, does offer a high level of Magento hosting. Customers have access to a dedicated support time that is available 24/7, with managed cloud account and performance monitoring of your Magento hosting site. Plus, all the Magento hosting have almost no downtime, with an uptime guarantee of 99.999%.
Commerce Integration Framework (CIF) and the Magento CMS
Through CIF, Adobe can make Magento hosting more effective and supports more complex scenarios. Many eCommerce hosting users want a CMS tool that can make the buying experience more accessible. Having a single device to manage both the Magento hosting and user experience, makes it much easier for all Magento hosting customers.
CIF allows Adobe Experience Cloud to integrate with Magento, so this might push the entire e-commerce industry to a new level in the upcoming years. Magento hosting users already getting access to Progressive Web Apps (PWA) and a developer tool kit. If you are a Magento hosting client, then you might see that there is a huge boost in conversion rates because you will now be able to create an e-commerce store that mimics an app-like experience. Magento hosting stores might see a big increase in revenue thanks to the higher conversion rates.
The acquisition of the Magento CMS by Abode will have a clear impact on the eCommerce hosting market. However, those effects are still being felt. There are new integrations and various technological advances that might lead to a boost in revenue for Magento hosting users. With the release of Adobe Commerce cloud, we can see that it will be good for some Magento hosting customers, and the e-commerce hosting industry.