On May 21, 2018, Adobe announced its intention to purchase Magento for $1.68 billion, adding to its long list of acquisitions. Inside the Magento developer community, the announcement immediately resurrected the same negative feelings community members experienced during the eBay acquisition in 2011.
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If history were to repeat itself, as it often does, there wouldn’t be a lot for Magento developers to look forward to. However, Adobe is not eBay. Adobe has already dived headfirst into the community fray, bringing as much clarity as it can and calming the community’s fears.
The Magento ecosystem—made up of technology partners, solution partners, merchants, and an estimated 280,000 “community members” who work with Magento on a regular basis—is predicted to drive $14.2 billion in ecommerce revenue by 2020. I believe Adobe’s acquisition of Magento will continue to fuel an increase in both job and revenue numbers once the two companies start firing on all cylinders. If the Salesforce purchase and integration of Demandware is any indication, it will be another 12–24 months before we will see any noticeable changes to the Magento platform.
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Overall, my outlook is positive. Here are my predictions for Adobe’s Magento acquisition.
No Closures for Open Source
Adobe will double-down on Magento’s commitment to cloud for enterprise users, but will continue to support the fundamentals of the Open Source edition, with some changes. I believe that Adobe will continue to cultivate Magento’s open source ethos and its community engineering initiative, but will also bring Magento Open Source to the cloud to compete with Shopify and BigCommerce. Adobe’s commitment and contribution to open source is apparent by the open-source projects it supports.
A Bright Future for PWAs
Adobe will continue to invest heavily in the PWA tooling and leadership Magento brings to ecommerce and beyond. As Adobe continues to be a leader in CMS, driving innovation in PWA technologies will be paramount. If Adobe Experience Manager can serve its content up as a PWA, the Magento integrations that drive ecommerce from the cloud will be simpler and faster to develop and implement.
DEG’s Magento team stands out as one of the most experienced in the industry
A New Name
Adobe will rebrand Magento Commerce as Adobe Commerce Cloud. Magento has a strong brand, but Adobe’s brand is arguably stronger, listed as #80 on the Forbes World’s Most Valuable Brands list. Assuming Adobe’s goal is to increase enterprise sales, it will want to rely on the recognition of its brand. However, the brands will need to think this through carefully, as rebranding may irreversibly diminish community involvement, which is a foundational value of Magento’s brand. Either way, this will make an excellent case study some day.
For agencies like DEG, this acquisition brings new opportunities for the brands we serve. Congratulations to Mark Lavelle and the Magento leadership team on building a great company which we have partnered with for almost a decade, and congratulations to Adobe for its bold decision to bring commerce to its brilliant suite of solutions.