The recent announcement that Magento has agreed to be acquired by Adobe is a win for both parties (and some other parties too)!
For Magento, being part of Adobe will mean access to more technology and more resources (including financial). The Magento Cloud has already made strides into the enterprise market. With Adobe as its owner, Magento can rightfully claim to be one of the major players in the cloud-i-verse. And, Adobe’s large enterprise customer base should serve as fertile ground for Magento growth.
For Adobe, the value is obvious: as one of the world’s largest cloud vendors, adding e-commerce capability will close the loop on its digital offerings and make it a soup to nuts player in the B2B and B2C universe.
But what about the additional Win in the title of this post? That’s easy. The Magento-Adobe combo is also a win for Magento customers. With Adobe, they get three major benefits:
- First, there was Magento, then eBay Magento and next, Private Equity Fund-owned Magento. A revolving door of ownership is never good for a company’s business plan or technology roadmap. Unstable ownership can hinder new product development as well as customer service, as owners see the need to sacrifice R&D in favor of near-term bottom line considerations. At the time of this writing, Adobe was selling for $240.00 and change on the NASDAQ, with a market cap of just under $120 billion. With those numbers, they are unlikely to be acquired. And with fiscal Q2, 2017, net income of over half a billion dollars, they are very unlikely to need to shed business units in the foreseeable future
Big-time financial backing
- Adobe has gotten to where it is today by both acquisition and by massive investment in their product portfolio. That can only be good for Magento and its user base, as users are assured that they will always be at the technological leading edge.
- Unsurpassed Cloud expertise. Adobe is one of the biggest Cloud technology companies in the world. With half of Magento’s new customers in 2017 being Magento Cloud signees, being part of Adobe will ensure that the Magento Cloud will have greater marketplace visibility and cachet.
But What about Magento Partners?
Perhaps a fourth Win is in order. Also, among the beneficiaries of the acquisition will be Magento’s enormous partner network. They’ll benefit in at least these four ways:
• Magento is a strong brand, but its recognition factor is a fraction of Adobe’s. As the inventor of the PDF (Personal Document Format a.k.a Public Document Format) the Adobe name and trademark is never out of sight on the desktop for long.
• The Magento and Adobe channel networks should produce an excellent sales synergy
• As mentioned earlier, Adobe has massive resources that Magento will be able to tap into.
• Magento customers are going to need their partners more than ever to help them keep up with new developments and to make sure they are getting the most value from the Magento platform (for example, does the melding of the two companies make a more compelling reason for the on-premise Magento customer to move to the cloud?
In short, if it’s good for Magento, it’s good for its partner network.
At Adeo Web, we’re excited about this development and looking forward to seeing how the benefits described above come to fruition. We’re excited about working with our clients through the transition and the increased possibility of earning new ones.
And, we think this is just the tip of the iceberg. Whether you’re a long time, small to midsize Magento user, or an enterprise customer who’s just signed on to the Magento Cloud, your e-commerce future has just been made brighter. Ours, too.
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