After Years of Decline, Magento is Spending and Growing
A couple of years ago, Magento appeared to be a dying platform lost inside eBay’s corporate ownership. The software was being poorly developed, and their approach to security releases was absolutely awful. Community members were worried.
In 2017, things are very different. Magento was sold to a private equity company, and then Magento 2 was released after several years of delays. On the back of those changes, they raised $250 million. That money is burning a hole in their pocket. Their CEO publicly announced an acquisition spree, and recent purchases include:
- RJMetrics, an e-commerce analytics platform, which is now “Magento Business Intelligence Essentials”.
- Shopial, which turns your store into a Facebook shop. This will be used in a new service called “Magento Social”.
- Bluefoot, a Page Builder module, which Magento has rebranded as “Magento Advanced CMS”.
Earlier this month, the Magento Imagine conference took place in Las Vegas, and there were more product announcements. Magento has increasingly deep partnerships with two big players in the Drupal world: Acquia and Platform.sh.
Don’t get me wrong, not everything is rosy in the Magento world. There are plenty of complaints, and we found a lot of bugs while filming our Magento training. But, there’s been real progress. Magento’s future looks much brighter than a couple of years ago.
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We may want to include partnerships as well, such as the one with Temando, which powers “Magento Shipping”.
Interesting that [url=http://Platform.sh]Platform.sh[/url], formerly/pivot/spin-off of Commerce Guys (the Drupal Commerce solution), now powering Magento Enterprise Cloud Edition (MECE), competes head to head with Acquia Cloud. Also interesting that MECE took a backstage role at Imagine 2017 – compared to last year. Any idea why?
Hi Ossy, I don’t but that’s an interesting question. I do see Magento a lot of Drupal events these days – they’re trying heavily to attract Drupal users.
Content Commerce is definitely a thing and it’s proven (eg Net-a-porter). Acquia worked with Demandware on the space before, but honestly I am not sure there is a cultural fit between those two. Adobe is also in the mix, but is that just a partnership or are they courting Magento? (Consider that Adobe was one of the companies bidding for acquiring Demandware – they clearly have an appetite). With $250m from Private Equity, it will be hard for Magento to sell for less than $1b, limiting the pool of potential acquirers. Magento is investing, or trying to, in activities with a high multiply on revenue generated (recurring revenues), to maximize their valuation.
Magento is dead, development is stopped, most of devs are dismissed and company is switching to sustaining and support only.
Do you have evidence to back up the statement?
There are lots of questions hanging on Magento. If Magento will have a better future, that will be great for this popular e-commerce platform.
I’ve been along for the Magento ride for quite a while now as an innovative retailer pushing Magento to the limit for years making millions with a customized CX, and now as a consultant for other online retailers. I’ve seen support for EE improve a ton over the last 2 years which is exciting. M2 is still not widely accepted but is gaining traction as more solution providers catch up with integrations. Magento still rocks and does things Shopify can’t do well mainly based on the power of correctly setup Attribute Sets. When my company was shanghia’d from me via hostile takeover (lost my 55% share of my 10yr company build damn it…) the “new management” saved money by killing EE and switching to Shopify standard. The company has been in a shambles ever since and the new Shopify site just can’t offer the customized shopping experience. Magento still has a solid offering and can dominate in the right hands.
That’s very useful feedback, thanks Travis.
My team have gave up Magento 2. We are still using Magento 1 or Shopify. Magento 2 is too complex for development and it take a lot hosting resource. We was have planed to develop Magento 2 Extension. But at the moment, it hard for us to do that. There isn’t much people need Magento 2