3 Predictions for Adobe’s Acquisition of Magento

Digital Marketing | June 1, 2018

If you don’t already know that digital experience giant Adobe has acquired the ecommerce specialist Magento for $1.68B, it might be time to stop enjoying that fresh air and get back on Twitter.

There has been plenty said across the industry about how this move closes the customer experience loop for Adobe and makes them a formidable competitor to SAP, Oracle and Salesforce.  But the truth is, we don’t know what we don’t know. Assessing the current situation can help us predict what will happen in the future, but as the old adage goes, time will tell.

Content Meets Commerce

Now: Adobe and Magento are two separate systems, two separate technologies that will in the short-term coexist through Adobe’s commerce framework or through custom solutions.

Future: Adobe has an excellent track record of taking smart acquisition moves and integrating the technology into their own system. And they are very likely to come to the same seamless outcome in this case. Down the road, Adobe customers can expect that fully integrated solution that already comes with using the Experience Cloud.

Can Adobe leverage and support the community of Magento developers?
Can Magento keep pace with the technology innovations that set Adobe apart?

Mid-Market Meets Enterprise

Now: Adobe has thrived in serving enterprise customers while Magento has capitalized on the mid-market, both have aspirations to cross-pollinate.

Future:  Whether they share dominance in both markets or move toward a singular focus, customers are not going to jump right in and invest. While there will be renewed interest in Adobe due to the commerce component, a purchasing delay is likely as many wait for test cases to prove out and for the relationship kinks to be fully worked through. But Adobe’s vision for experience-driven business will continue to be an asset that keeps it out front of competitors like Salesforce and IBM.

Maturity Meets Innovation

Now:  Magento is a mature product with a robust network of developers that have widely contributed to its open source platform. Adobe is leading the industry in innovative experience products that are changing the way we interact with digital.

Future:  Can Adobe leverage and support the community of Magento developers? Can Magento keep pace with the technology innovations that set Adobe apart?  There are surely ecosystem challenges that will need to be solved as these two companies look to integrate their key offerings.

A Final Word

With Adobe using innovative technology to set experience expectations higher and higher across the entire customer journey, the acquisition of Magento now adds the transactional element to the mix. How high can the bar go for a personalized and fully immersed experience on both B2B and B2C experiences? We expect very high – so we’ll be keeping our binoculars out and focused upwards.

 

This article first appeared on Adweek

Greg is the President and CEO of iCiDIGITAL. He is responsible for the strategy, day-to-day operations, and overall leadership. With focus on web experience management (WEM), mobile, and cloud consulting solutions, Greg has been instrumental in growing iCiDIGITAL’s super talented team of consultants and expanding on an array of high-profile clients across multiple verticals.