What Does Adobe’s Acquisition of Magento Mean for E-Commerce?

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At the end of May, the e-commerce community was abuzz with the news that Adode would be acquiring Magento. For those who are entrenched in the community, the news should come as no surprise. This has been the plan since Permira acquired Magento from Ebay in 2015. But whether or not this was expected doesn’t answer the most important question: Is the acquisition good for Magento and its customers?

Here at FortyFour, we believe the answer is yes.

The e-commerce platform market has seen a great deal of consolidation over the last few years. The most notable acquisitions were SAP’s purchase of Hybris and Salesforce’s purchase of Demandware. These platforms, which already had good penetration into the enterprise market, were further strengthened by their new parent company’s broad suite of offerings.

The Adobe acquisition promises to have a similar effect on Magento. In its early years, Magento split its attention between the SMB and enterprises markets. But as the platform has expanded — it is by far the most robust e-commerce platform available — the costs have gone up. The increasing B2B functionality, the sheer number of third party modules, the power of its out-of-the-box offering — this all comes at a price that mainly enterprise customers can afford. Adobe gives Magento access to a larger portion of the market it should be focused on, and increased interconnectedness with powerful offerings like Adobe Experience Manager are likely to enhance its attractiveness as well. Magento is setup for success in the enterprise space.

A clear product/market fit and a new owner with a broad offering doesn’t just mean more customers for Magento. It likely means a better platform for those customers. The Magento developer community, already the largest in the e-commerce space, will likely attract even more top talent as the platform grows in complexity and power.

FortyFour is proud to be a certified Magento partner, and while we always make e-commerce platform recommendations based on the unique requirements of our clients, we’ve invested in the Magento platform because, for our enterprise clients, it’s often the best choice. We look forward to seeing how the platform evolves in the years to come.

Adam Roe, Managing Partner

As managing partner with a focus on performance marketing and analytics, Adam is responsible for ensuring the client digital and social marketing efforts managed by FortyFour are compelling, conversion-oriented and constantly optimized. He also has extensive experience in the e-commerce field, and utilizes that to ensure the e-commerce projects we support experience growing traffic and conversion rates.

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