Are you facing the critical decision of choosing between Adobe Commerce and Magento Open Source for the future operation and success of your online store? Let's explore together the essential differences between the two platforms, so you can make a more informed choice regarding the best fit for your business and needs, the costs associated with the platforms, and the functionalities that come with them.
Magento was originally launched in 2008 as an open source e-commerce platform in two versions; Magento CE (Community Edition) and Magento EE (Enterprise Edition), quickly becoming a significant player in the vast world of e-commerce. In 2018, Magento was acquired by Adobe, and in 2021, the platform was renamed Adobe Commerce, while also being expanded with a number of advanced and enhanced integrations. At this point, Magento is still offered as an open source version under the name Magento Open Source.
And it is precisely the process of changing owners and rebranding over the years that has led to the confusion many encounter today when talking about Adobe Commerce and Magento Open Source - isn't it the same?
The answer is 'no'.
Today, Magento exists in 3 versions:
- Magento Open Source (formerly Magento CE)
- Adobe Commerce - On-premise (paid and self-hosted version of Adobe Commerce)
- Adobe Commerce - Cloud (paid service built on Magento and hosted by Adobe)
Magento Open Source is essentially a free e-commerce system. You can download it and install it on a server, after which you own your webshop. This means that you also encounter a wide range of customization options.
While Adobe Commerce is a paid and licensed service that is built on Magento and has added additional functionality. This means that the solution is more plug-and-play on one hand, but at the same time, it is also more restricted. To use the system, you will therefore also need to continuously spend more money.
Magento is a very powerful e-commerce system for large and medium-sized businesses that require solid operations and automated workflows. Especially in B2B, Magento is a frontrunner. So the question is, do you want to own your webshop with the associated tasks, or would you prefer to 'rent' and let Adobe handle updates, security, hosting, etc.?
Nicolai Kibsgaard,
Magento Team Lead
What is Magento Open Source?
Magento Open Source is the ideal solution especially for small and medium-sized businesses looking for a cost-effective and flexible option, and who have technical expertise in-house or the capacity to collaborate with a Magento partner.
Magento Open Source, formerly known as Magento Community Edition, is free to download and install (however, be aware that there will be an expense associated with your hosting, which can vary depending on your shop's traffic, integrated extensions, and third-party integrations).
If you have a solid technical background or experience with Magento, you can set up your online shop using this version yourself. However, in many cases, it will be necessary to involve an experienced Magento developer later in the process, for example, to configure and maintain your site, ensuring that you continue to improve functionality and security.
Some advantages of Magento Open Source include:
- No license costs: The solution is attractive for businesses with limited budgets.
- Flexibility and customization: Strong support from an active community means many available extensions, plugins, and themes.
- Independent hosting: You choose the hosting solution that suits your needs and budget.
What is Adobe Commerce?
Adobe Commerce offers a more comprehensive solution with built-in cloud hosting, advanced marketing tools, and full support from Adobe. Note that cloud hosting through Adobe can, in some cases, reduce the technical burden and the costs associated with independent hosting.
Therefore, it is an ideal solution for medium-sized and large businesses that operate both B2C and B2B with more advanced needs and can greatly benefit from features such as integrated business intelligence, customer loyalty programs, and visual merchandising. If rapid growth is expected, Adobe Commerce can also be the best decision, as it is a platform that is easy to scale.
Adobe Commerce requires you to pay license fees based on your annual gross merchandise volume - therefore, fees vary.
Some benefits of Adobe Commerce include:
- Scalability: The solution can grow with your business and handle a large amount of traffic as well as more complex setups.
- Advanced features: You will experience a range of functionalities such as business intelligence, customer loyalty programs, and advanced segmentation.
- Support and security: The solution comes with comprehensive technical support and several security measures from Adobe.
What should you choose - Adobe Commerce or Magento Open Source?
As described above, there can be a natural choice depending on your company's size and the opportunities the different solutions offer for your business.
Magento Open Source is especially recommended for smaller and medium-sized businesses, while Magento 2 Open Source is a very good solution for B2B. It should also be noted that the Cloud version has some built-in standard tools that the Open Source version does not have. Adobe Commerce is recommended for medium-sized and large companies that deal in B2C, B2B, or both. Additionally, Adobe Commerce is also an ideal solution for companies that anticipate rapid and extensive scaling.
Choosing between Magento Open Source and Adobe Commerce, however, can depend on several other factors, including technical capabilities and your budget.
There are indeed some significant price differences between the two solutions, which include:
- Startup and operational costs: Magento Open Source may require significant investments in hosting and customization, while Adobe Commerce has higher license costs. However, these might be offset by lower operational costs in the long run.
- Customization and functionality: Although both platforms offer extensive customization options, Adobe Commerce comes out-of-the-box with more advanced features.
- Technical support and maintenance: Adobe Commerce offers comprehensive support and maintenance, which can reduce the need for technical staff and thus lower total maintenance costs.
Considerations for small and medium-sized enterprises
For small and medium-sized enterprises, Magento Open Source can be an ideal solution. This is particularly due to the low startup costs and the flexibility the solution offers. However, there is often a need for technical expertise in areas such as operation, and if this is not available in-house, assistance from an external Magento developer may need to be considered.
Although technical skills are sometimes required, the solution still allows a reasonable degree of customization without significant costs and experience with Magento or similar platforms.
Considerations for larger enterprises
For larger enterprises or those that require more advanced features and support due to a more robust infrastructure, Adobe Commerce or Adobe Commerce Cloud may be more suitable. This version offers deeper integrations, enhanced security, and technical support, which can be crucial for large processes and more complex e-commerce systems.
The startup cost is higher than for a Magento Open Source solution; however, the comprehensive support and built-in features can meet many of the needs that particularly larger enterprises might have.
Factors that may influence your choice
To make a well-informed decision, you should primarily consider two things; needs and costs.
This involves the company's current and future needs. Here, you should think about which features are critical for your business and which might come into play in the future if the desired growth is experienced.
You should also analyze the cost structure and consider both the upfront and ongoing costs of each platform. Additionally, you should consider the technical capacity, which can be particularly decisive if you do not have a large IT team in-house.
In some cases, the integrated support provided by Adobe Commerce can also be a deciding factor.
