Magento Enterprise moves up in Gartner Magic Quadrant for Digital Commerce report

Three weeks ago Gartner issued fresh version of Gartner Magic Quadrant for Digital Commerce report, where this leading research company compared major players on enterprise eCommerce market. Since we specialise in Magento eCommerce, I was most interested to see how this platform performed according Gartner’s analysts. Appeared that it did well!

Note: if you are not familiar with Gartner Magic Quadrant is – scroll down to see the explainer.

Note 2: we have published update information about Magento in Gartner Magic Quadrant 2016

Note 3: Gartner Magic Quadrant for Digital Commerce 2017 is published, check our blog post to find out more.

Magento Enterprise has progressed from Niche Player to Challenger this year

So Magento did quite well and has improved its position among the strongest players on enterprise ecommerce platforms market.

Some other particularly interesting point from the research are below.

Market in general and other players

  • Future ecommerce market direction is individual customer experience (70% of eCommerce is expected to move there by 2017) and by 2018 companies that have fully invested in personalisation will outperform those who haven’t by 30%;
  • By 2017, 70% of e-commerce websites in North America will rely on services from eBay and/or  Amazon;
  • Digital ecommerce software market continues to grow with CARG (compound aggregate growth rate) 13.6% per year from 2012 to 2017
  • There is no any solution in Visionaries;
  • IBM, Oracle and SAP/Hybris are listed as leaders;
  • Magento, Digital River and Demanware are  Challengers.
  • Other solutions are classified as niche players

 Magento eCommerce

  • Gartner noted strong improvements in scalability, perform, search (Solr), responsive design, taxation and check-out process;
  • Some Magento Enterprise customers have over 10 million SKUs and process over 2,000 orders per hour with over $100M annual ecommerce revenue;
  • Magento is the only non-SaaS solution among Challengers;
  • Possibility to leverage wider eBay Enterprise solutions such as payment (Paypal), retail order and fulfilment management, marketing referred as important positive points for Magento Enterprise customers;
  • Wide availability of extensions for integration with 3rd party products and services is another strength;
  • As a caution points Gartner names variability of quality among Magento eCommerce implementation partners, not very clear vision of the future directions from eBay, functionality gaps in web content management, personal information management and some other areas. It is noted though that some of that functionality is available through wider eBay and 3rd parties

Magic Quadrant

If you are not familiar with Magic Quadrant methodology, here is brief summary of the approach:

  • Market players are evaluated by 2 major qualities: Completeness of Vision and Ability to Execute. The higher – the better;
  • Quadrant is 2×2 matrix, so there are 4 classes:
    • Niche Players – lower on both Completeness of Vision and Ability to Execute
    • Challengers – higher Ability to Execute, lower Completeness of Vision
    • Visionaries – lower Ability to Execute, higher Completeness of Vision
    • Leaders – higher on both Completeness of Vision and Ability to Execute

The illustration below from http://foswiki.org/ may help you to understand the methodology in less formal way

Gartner Magic Quadrant for Dummies, (C) by Geek & Poke (Creative Common)

References

  • Gartner Magic Quadrant for Digital Commerce – report summary
  • Gartner Magic Quadrant for Dummies – on author website

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