Magento Stays Dominate Despite Many Big Changes

The world’s largest eCommerce platform, Magento, has persevered through considerable turmoil in its short existence. Currently powering over 240,000 eCommerce sites worldwide, Magento’s massive install base and engaged eco-system continue to grow and prosper. Innovation and adaption are always at the heart of any successful technology platform and Magento is no exception. Having persevered through many changes in ownership and leadership (with more imminently on the horizon) Magento has demonstrated that retailers of all sizes are able to actively identify when a platform offers more than the competition. Despite this continued success there is still plenty of room for improvement.
 Brief Timeline of Major Magento Changes
-First officially released version of Community Edition (March 31, 2008)
-Magento Professional Edition released (May 1, 2010)
-Purchase in entirety by eBay (June 6, 2011)
-The loss of co-founder & CTO Yoav Kutner (Feb. 4, 2012)
-Magento still trying to find its identity cancels Pro Edition (May 1, 2012)
-Restructuring into the eBay Enterprise division (Nov. 21, 2013)
-Announcement Enterprise division is up for sale (Jan. 21, 2015)
-Magento Go official shuts down (February 1, 2015)

Throughout this roller coaster ride one thing about Magento has remained constant: it has continued to grow. There is no eCommerce platform or technology software that boasts the range of community support that Magento has achieved. A strong base of support has helped Magento solidify its position as the de facto platform of choice for the widest range of companies. This strength un-matched by any competition. Magento is the number one platform in the top 1 million, one hundred thousand and top ten thousand eCommerce websites. It is also the number one mid market platform and fastest growing platform in the IR top 500.
Being able to choose between Community and Enterprise Edition is a diverse quality that allows Magento to offer itself as a viable option to companies with revenue streams of completely different proportions. This range of clientele remains a strong reason Magento boasts such a large eco-system. The array of developers, agencies and solution and industry partners complement each other and are a necessary component to the growing number of merchants who choose Magento for their eCommerce success.
What does Magento Lack?
A lack of a clear revenue stream to accompany the hazy identity surrounding what Magento has to offer under the eBay Enterprise umbrella is an issue of concern. Quality control of Magento extensions and developers must also be improved, yet despite these shortcomings Magento still powers more top eCommerce sites than any other platform in the world today. Focusing on an enhanced quality control surrounding what many view as Magento’s biggest structural flaw right now, Magento Connect, and the potential for growth and increased efficiency will increase Magento’s appeal. This applies to merchants and investors or companies looking to acquire eBay Enterprise. Magento is also in need of stability regarding its ownership. Magento currently lacks an owner willing to pour maximum resources into expanding the brand. This is also necessary to increase the timeline of updates. The continued delays of Magento 2 have been a cause for concern and demonstrative of eBay’s perceived lack of urgency relating to Magento’s growth.
Magento 2 Boost
In the right hands Magento is poised to see its upside fully realized. The upcoming release of Magento 2 is going to significantly enhance the Magento experience for merchants of all sizes. It is a critical time for Magento and having an owner willing to put the resources into capitalizing on the Magento 2 release will catapult growth to unprecedented levels. The fact it has been over 3 years since development on Magento 2 began, and there still remains an un-certain release date for late 2015, emphasizes how the lack of stability from ownership on down has affected Magento’s evolutionary progress. And again, despite these hardships Magento is still number one in eCommerce market share due to superior architecture that is simply ahead of the competition. Magento 2 aims to further solidify this advantage for up to another half decade, which will be essential in Magento maintaining its current status. It is impossible to ignore the growth of competitors as other platforms look to capitalize on the lush future of online retail across existing and emerging markets.
Magento’s Value to Buyers

Magento’s newest challenge is proving its long-term value to potential buyers. One of Magento’s biggest weaknesses has long been its lack of a clear, lucrative revenue stream to accompany its status as the most flexible, scalable and extensible eCommerce platform on the market. Open source software must be a clear concern for investors, yet this doesn’t mean Magento should shut down its accessibility in order to profit. The concept behind Magento being open-source is an essential factor in Magento’s success by allowing developers greater flexibility when customizing sites around their client’s specific needs. One of the biggest areas for potential revenue (and improvement) revolves around Magento Connect and the lucrative market of extensions. The current state of Magento Connect is a sore subject for many in the Magento Community.
 Magento Connect
Fixing Magento Connect should become a top priority for any new buyer of eBay Enterprise, unless changes to the existing state are made before a finalized purchase in an effort to enhance the selling value. Changing the business model behind Magento Connect is also a factor that must be considered when evaluating the current system. eBay’s financial arrangements with vendors in Magento Connect must be re-evaluated and likely disassembled. Ideally an entirely new business model could maximize profitability and enhance quality control for merchants, helping further increase revenue. As of September 2014 there are currently 6505 Magento extensions available. A quality control standard should reduce this number and increase reliability for retailers.
What is Next for Magento?
With all the changes in ownership and leadership that Magento has been able to overcome, it is scary to think where Magento could be had there been one consistent leader and owner pushing a Magento only agenda since its inception. Looking forward to the end of this year and a potential Magento 2 release date, stability becomes a key concern. The Magento community would love to see some closure regarding the sale of eBay Enterprise as soon as possible, especially before Magento 2 is officially released. The eventual buyer of eBay Enterprise will have a monumental effect on Magento’s future. It is far from a guarantee that Magento even remains a part of the eBay Enterprise division, but with a quarter of a million retailers currently using the platform, and a Magento 2 release date close on the horizon, continued domination of the eCommerce market is a safe bet.