Magento and Adobe - stronger integration and better synergies
1.5 years after Adobe's acquisition of the e-commerce platform Magento, the companies presented their new roadmap and made particularly significant announcements for the European market at the MagentoLive conference in Amsterdam. The news ranged from new product enhancements through stronger integration with the Adobe technology stack to new AI functionalities for the Magento platform on Adobe Sensei. Here are some of the most important highlights:
The Magento acquisition served two different purposes for Adobe:
- Reaching new customer segments, in particular small and medium-sized companies (segments which Adobe was unable to penetrate organically in the past)
- Enriching its CX portfolio with e-commerce solutions and positioning itself as a full-service provider for the customer interface.
With the Magento platform, which targets both B2B and B2C customers, Adobe aims to become a leader in the (enterprise) CX space and adequately compete with its largest competitors, Salesforce (Demandware and CloudCraze) and SAP (Hybris Commerce).
The increasing success of Magento Commerce (enterprise version), which has become the central component of the Adobe Commerce Cloud, can also be observed in the large and dynamically growing ecosystem of developers, technology partners, and systems integrators.
New version Magento Commerce 2.3.3
The new Magento platform update contains mainly security, performance, and quality improvements. Among other things, it introduces extensive security changes as well as PSD2-compliant core payment methods. Furthermore, the security updates, which were initially developed through an intensive collaboration with Adobe’s threat intelligence team, contain features detecting potential infections and system vulnerabilities.
Moreover, the new version includes enhancements of Magento’s CMS solution, Page Builder, and, among other things, easier operability for non-technical users.
In addition, a new PWA release was announced in line with Magento's new "mobile-only" orientation. The availability of Progressive Web Applications (PWA) (a website that looks and behaves as if it were a mobile app), which was first announced in January 2019, will enable merchants to deliver highly personalized cross-channel experiences and create high-conversion mobile experiences.
Magento now with AI feautures
Magento will be able to use Adobe's intelligence layer, Sensei, from January 2020 to make it easier for its customers to collect data and present more effectively personalized recommendations (e.g. by offering “next-best-action” advice). The new AI capabilities will only be available for the enterprise edition and will be delivered as a SaaS service, administered through the Magento admin panel. In September 2018, a special working group was set up at Magento/Adobe to bundle the BI/AI/ML capabilities and enable similar innovations on Adobe Sensei in order to leverage the synergies between both companies.
Microsoft Azure support
Also noteworthy: Magento pursues a multi-cloud approach: In addition to AWS, Magento will also offer Microsoft Azure support in the Cloud Edition. This step is necessary due to increasing customer demand.
Adobe Stock Access
Another exciting announcement which Magento platform users will greatly appreciate is the newly granted access to Adobe Stock (which includes Adobe’s content library and access to images, media assets, etc.). This allows Magento customers to enhance their content visually and improve the user/customer experience, which is a comparative advantage in this business.
Furthermore, Magento announced a number of external enhancements, including marketplace integration with Amazon in order to make it easier for its customers to launch their Amazon stores through Magento. This integration, which is currently only available to customers in the U.S., will also be available in Europe, launching first in the UK in January 2020. Integration with Google Ad channel, etc. will follow shortly; however, the European release date for marketplace integrations has not yet been communicated.
Magento’s future roadmap is based on the following pillars:
- Delivering "superior experiences";
- Enabling "omni-channel integration"; and
- Providing "commerce intelligence".
Adobe's European strategy for Magento is clear: the focus is on B2B customers, as this segment has the highest growth potential. Theoretically, the company is well-positioned to reach its goals: The combination with Marketo (the B2B marketing automation solution) in particular should result in strong synergies. A defined roadmap for the joint integration of Magento and Marketo on the Adobe Platform has not yet been presented. One market trend that may be in favor of Magento/Adobe is the increasing convergence of content and commerce, a domain that Adobe has good mastery over due to its strong creative/content background.