The American gigant Adobe has won the enterprise-class market with its advanced marketing platform, Adobe Marketing Cloud. Now it is expanding its offer to include the e-commerce sector. On May 21st Adobe announced its intention to purchase Magento, one of the world’s most popular e-commerce platforms. Both of these solutions have been successfully implemented by Sii experts in recent years, in large international corporations as well as in smaller, local companies. What changes can the users expect? Does this combination bring only benefits, or also risks that entrepreneurs should be aware of?
Adobe Marketing Cloud allows users to integrate digital marketing activities, manage multi-channel campaigns, and personalize content. Magento, on the other hand, enjoys the recognition of over 250 thousand traders worldwide and has a 30% share in the e-commerce market.
Service Delivery Managers at the Sii Digital Competency Center explain what does this change mean to the users. Marcin Kozłowski specializes in e-commerce and has been working with Magento solutions for many years, whereas Rafał Rewiński is an Adobe Marketing Cloud expert.
A few days ago, the IT industry learnt about the planned acquisition of the Magento platform by the giant Adobe. What effects can the combination of those two brands have on the current and future customers?
Rafał Rewiński, Service Delivery Manager: For current and future users of Adobe Marketing Cloud products, it is very good news. E-commerce is undoubtedly the one last missing jewel in the crown. Adobe has already attempted to initiate cooperation with other solution providers, but so far without success. Now that Magento is becoming an integral part of the family, Adobe will be able to achieve full synergy with other products, such as Adobe Experience Manager, Adobe Analytics and Adobe Target.
Marcin Kozłowski, Service Delivery Manager: For customers using the Magento platform, this certainly means having an easier access to the entire range of Adobe products mentioned by Rafał. End-users, on the other hand, will notice that the shopping experience will be similar regardless of the device or location (phone, laptop, brick and mortar shop). There is a chance it will become a unified undisturbed process.
I also expect more pressure to be put on Magento Enterprise development and licensing models to be adapted to what we know from Adobe: cloud applications and subscription access. If I were to guess, I would say that this is what the sales and marketing experts of the merged companies are working on.
However, I am wondering about by the future of Magento Community (open source version), developed by a group of several hundred thousand developers. To what extent will Adobe’s declarations of support for this part be fulfilled?
Rafał, you are an Sii expert with more than five years of experience in the field of Adobe Marketing Cloud. You have had an opportunity to implement this solution in several international companies operating in such sectors as aviation, pharmaceuticals, automotive industry, trade, advertising and banking. Can you please tell us what opportunities the Adobe platform can offer after it is integrated with Magento?
R.R.: Adobe has been on the market for many years. Most computer users are most likely familiar with Adobe Reader and PDF files. Photographers and artists probably associate the Adobe brand with such products as Photoshop, Ligthroom or Illustrator. As an undisputed market leader in creative tools for the complete range of creators, from designers, through graphic designers to filmmakers, Adobe has established its position by outperforming its competitors. However, together with the rapid development of digital technologies and the Internet, new areas are emerging in which the company sees an opportunity fill the gap in the market by building, developing and sometimes purchasing existing products with an established position or those which potential has not been appreciated by the competition yet. A perfect example of this can be one of the components of Adobe Marketing Cloud, i.e. Adobe Experience Manager that we specialize in. Initially, it was a product called CQ by the Swiss Day company. Adobe saw great potential in this solution and purchased it. At present it is investing in the solution development to meet future market requirements and expectations of current customers.
In the context of Magento, I think that the scenario will be very similar. It is a well-known and well-established product. From the Adobe’s point of view, joining the e-commerce system family will be a perfect complement and an extension of a very well-composed product offer with an element, which is a natural component here; something that has been lacking so far.
Marcin, in the Sii Digital Competency Center you are responsible for competence development in the Web area, where you have more than 10 years of experience. In addition, you are familiar with the Magento platform. You cooperate with customers from the Scandinavian market, implementing e-commerce solutions for them. These are mainly companies representing the aviation, pharmaceutical and publishing sectors. What are the benefits of this merger for current and future Magento platform users?
M.K.: Both current and future customers of the enterprise sector will be able to see the effects of the merger in a few months. The key word will be ‘omnichannel’ and advanced end-user analysis, which is very well supported in Adobe products. This will change the conversion rate of buyers and thus translate into increased revenues.
The customers should receive additional tools to support the development of the brand and its advertising. The list of functionalities awaiting to be implemented in the Magento platform is long, and cooperation with Adobe may impact their faster delivery.
For many years, Sii has been successfully implementing projects both in the area of e-commerce and Adobe Marketing Cloud. Marcin, can you tell us a few words about the most interesting Magento project, which has been carried out for one of the Sii’s customers?
M.K.: One of the unobvious implementations of Magento was to provide a sales platform for a group of local shops offering products from various industries and having different customers. One platform was made available to independent entities that could manage “their” part of the store, settle the sales, etc. The key element in this implementation was to create a database of users, support sales in the brick and mortar store and use the additional sales potential. For example: a user buying wine could also order a cheese board at the same time. It is an idea similar to what we know from Allegro.
Rafał, in which industries does Sii offer Adobe Marketing Cloud solutions?
R.R.: Generally, over the past five years, we had the pleasure of offering our services to customers from different business areas. Taking care of the anonymity of the companies which trusted us, I can only list examples of sectors, without disclosing any details. Certainly the pharmaceutical industry, the automotive sector, airlines, food wholesalers or creative agencies are worth mentioning.
In your opinion, what prospects does the merger of the two platforms open up for Sii?
M.K.: I’ll allow myself to make a digression before I answer this question. At Sii, the merger of Magento and Adobe took place a little bit earlier. Both solutions are available in one Digital Competence Centre.
Now the purchase by Adobe will support our idea to use both platforms. We will be able to focus on comprehensive solutions using the advantages of AMC and Magento Enterprise/Community.
R.R.: For Sii, including Marcin and me, it means the possibility to offer comprehensive solutions to our current and future customers, under the wing of Adobe. We have completed many projects so far, and we hope that there are even more ahead of us, which this merger will certainly help us in pursuing. It is definitely easier to recommend a customer additional products by a manufacturer, whose solutions are currently used by this customer because of such factors, as the ease of integration, technical support or such a trivial thing as a unified, centralised management system. At Sii, we have numerous teams of specialists in both areas, which places us – we dare say – at the forefront of IT companies offering both solutions. Therefore, I think the prospects are pretty good.