Adobe acquires ecommerce platform Magento for $1.7 billion

One of the biggest deals of the year has to be Adobe purchasing ecommerce giant Magento. We take a look at what the deal could mean for the future.

As the tools that power the internet become increasingly complex and capable, it is no surprise to see them become more valuable to the world’s population of web developers and designers. The ecommerce-based content management system Magento has been changing the way people shop online since its inception in 2008 and has become the default solution for ecommerce website designers in Brisbane and around the world.

Recently Adobe, the software juggernaut responsible for creative tools such as Photoshop, InDesign and, chances are, the PDF reader software on your computer, announced they were entering into an acquisition deal with Magento worth 1.7 Billion dollars.

A common history and future

Both companies share a lot in common, including going through a transition from delivering software-based products to offering Software-as-a-Service (SaaS) services through the cloud. Ten years ago, a Photoshop customer would purchase the software once and upgrade over the years, but nowadays this is handled through a continuing Adobe Creative Cloud subscription. Magento, likewise, started as an open-source content management system that was installed on a website and upgraded slowly with third-party extensions or comprehensive revisions but is moving towards a SaaS framework for powering large-scale operations that need constant upkeep. They also share many common clients including Coca-Cola, Nestle and Cathay Pacific.

Some see the move as being instigated by the way people purchase items or services online rapidly changing as the internet becomes the default way of shopping, while the content creation tools Adobe provide are increasingly geared towards online websites. Bringing both the software that powers ecommerce sites with the software that makes the websites inviting together is a promising proposition.

Potential upsides

Our iFactory development team were quick to point out that there are many potential advantages to such a merger. While the development ecosystem for Magento is already resplendent with thousands of third-party developers who are extending the platform in new directions, having a major software vendor like Adobe will bring serious clout.

It will also be possible that Adobe will offer new tools designed primarily for integration with Magento. This could be in the form of interactive templates or code frameworks that have Magento APIs already built in, saving developers valuable time and resources.

Caution ahead

Part of the appeal of Magento was that it was, in many regards, a collaborative effort, with thousands of extensions available for free or at low cost. Some are concerned that a corporate takeover will change the delicate balance.

Likewise, Magento being the default ecommerce CMS for Adobe tools could make it harder to work with other platforms including WooCommerce for WordPress. Developers, including ours, are hoping that Magento integration will be a beneficial option, not a strictly-enforced rule.

In the short term, this deal is expected to have no immediate impact on Adobe or Magento’s tools or development roadmap. However, once the deal is finalised towards the end of 2018 we will doubtlessly see how the two companies plan on merging their technologies and strengths across the Adobe Creative Cloud platform.

At iFactory our team of web developers and designers in Brisbane are always looking forward to the next big technological innovation. We’ve been using the Adobe Creative Cloud and Magento platforms for many years to develop award-winning websites for our clients and can’t wait to see what the two companies will create together. Contact iFactory to see how we can help your business sell online.

Image Source: Coolcaesar, CC BY-SA 3.0, Link
Read more insights