Adobe’s Magento Acquisition Is Not Surprising
May 25, 2018
To many it’s no surprise that Adobe Systems purchased Magento for $1.68 billion, more than 11 times the value of Magento just three years ago. The purchase represents two trends in digital commerce; the fact that Shop is an integral part of the entire user-experience and not a side consideration or the “back-office” of a website, and headless commerce with contextual content provides greater flexibility compared to the monolithic platform approach.
For me it’s taken too long for the industry as a whole to grasp this fundamental understanding rooted from the early years of internet that Shop is more than a “funnel”. Artificial intelligence, chat bots, AR with digital mirrors and digital “try-on” devices are becoming integral with have Shop – in other words Shop is becoming ubiquitous with the user experience. Those in the fashion retail industry have known this for years.
Going beyond the numbers, how significant is this acquisition and how is it expected to boost Adobe’s current leadership position in the digital experience management space? Every customer now expects a relevant and personalized interaction to culminate into a purchase, whether online, in-store, on mobile, or on social media that is powered a diverse ecosystem that seamlessly interacts while being easy to deploy and maintain with a total lower cost of ownership. That’s where the Adobe Experience Cloud with integrated commerce capabilities makes for a compelling combination focused on the consumers’ interaction.
It’s about frictionless commerce
The convergence of curated content and commerce; in addition to analytics, marketing automation, asset management, social, email marketing, and managed services is the unified retail strategy needed to provide a frictionless consumer experiences. In fact, brick-and-mortar stores are creating experience shop centers using technology (think Nordstrom Local) − Direct to Consumer is about experience and customer knowledge.
Ubiquitous customer experience across websites, business-to-business, retail, mobile, assisted connected devices, and other channels is a must for retailers. There is a need for these disparate channels to work in unison while being extensible without interfering with the speed of marketing and commerce. This loose coupling while being connected is the future of commerce.
Magento and Adobe: A winning combination
The Magento Platform brings together digital commerce, predictive intelligence, and order management into a unified commerce platform enabling shopping experiences across a wide array of industries. Recognized as a Digital Commerce leader in Gartner’s 2017 Magic Quadrant for Digital Commerce, the Magento Platform is built on highly scalable technology supported by a vibrant community of more than 300,000 developers. This level of flexibility gives businesses the ability to quickly ramp and iterate their commerce capabilities for their unique business needs.
Adobe enjoys the pole position in digital experience, analytics, marketing and advertising. Recognized as the leader in delivering digital experiences, Adobe has become synonymous with unparalleled, personalized, and intuitive, digital experiences. Embedding commerce into the Adobe Experience Cloud with Magento will help Adobe make every customer experience shoppable – a game-changer in today’s digital commerce landscape.
With the biggest names in digital experience and digital commerce coming together, the e-commerce industry has reached a new frontier. Indeed, the future retail experience is a holistic unified approach with the user at the experience drive with greater flexibility powered with Cloud Solutions. The possibilities are endless. Are you ready?
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