How Adobe’s Acquisition of Magento Will Impact the Future of eCommerce

Adobe’s recently acquired eCommerce leader Magento Commerce. The $1.68B acquisition fits perfectly with Adobe’s Experience Cloud and offers a single, end-to-end digital experience platform for B2B and B2C customers.

Magento’s acquisition is the missing piece that Adobe needed for a holistic customer experience platform. Moreover, this also helps Adobe compete with Salesforce, which bought Demandware in 2016.

So why did Adobe acquire Magento?

A platform which unifies digital commerce, business intelligence, and order management is something that Adobe needed to solidify their position as a digital experience leader. With all other options having been acquired by Salesforce and SAP, they acquired Magento. The primary reasons behind this acquisition include:

• The company seeks to deliver greater value to customers
• They want to accelerate their penetration into new segments and geographies
• They look forward to accelerating their product roadmap
• The team at Adobe wants to leverage the creative passion of their community. It is the company’s mission to empower people by using technology

Platform providers may face increased competition

The acquisition made recently is very likely to heat up the competition among various platform providers.

With Adobe’s acquisition, the stock prices of competitors have already plunged. For instance, Shopify witnessed a decline of 5% in its stock prices.  

Now, with Magento in its suite along with an $8 billion share buyback program, you can imagine how strong a contestant Adobe would be.

On the other hand, leading companies like Oracle, Salesforce, and IBM will also not stop innovating. Progressive innovation is, thus expected along with intensified efforts to keep pace with the ever-changing consumer trends.

Thanks to the acquisition – eCommerce meets Innovation

eCommerce is all about sales and marketing. This is why most platforms are focused on direct eCommerce and performance marketing.

Only a few solutions are optimized for creativity, such as Umbraco, Drupal, and Sitecore. But all these platforms offer limited eCommerce tools.

Of course, when you talk about creativity, Adobe cannot lag behind. In fact, it offers one of the most creative suites of products and services that deliver exceptional digital experiences.

Now that it has associated with Magento, the game is about to take a new turn. The whole ecosystem will be more dynamic and diverse, embracing both eCommerce and creativity. You can be as innovative as you want while leveraging a number of eCommerce tools sans switching from one platform to another.

Customer journey to supercharge

Consistently creating an exceptional customer experience means keeping an array of ‘point solutions’ on offer, which could solve customers’ pain points. It also means investing in new technologies and integrations.

To ensure a seamless customer experience, companies need a solution that allows for a proper coupling of products and services. And this is what big players like SAP, Salesforce, and Adobe are trying to do. They are taking hold of new technologies to enhance the experience through the customer journey.

Of the several customer engagement phases—awareness, consideration, purchase, and retention, Magento addressed one, while Adobe the other three. Post acquisition, Adobe would be able to address all four of these.

Having acquired Magento, Adobe may be able to deliver a platform that lets you personalize and improve customer experiences across the complete customer journey.

Need help with Magento development and integration? Contact us!