Magento Keeps Going from Strength to Strength

With the explosion of ecommerce, open source ecommerce solutions such as Varien’s Magento, are gaining the attention of startups and established industry players. According to this SEC filing, Varien has raised $22.5 million in an equity deal to an undisclosed investor. According to TechCrunch, it may very well be Paypal, who has been collaborating with Magento on product development since 2008.

Open Source eCommerce Solutions: Truths And Myths, Forrester Research July 2009

We didn’t hide the challenges Magento faces in distributing an open source ecommerce solution when we covered Magento last November, but customers continue to adopt Magento as their ecommerce platform of choice. Back then, the company had one million installations, today total downloads reached a million and a half (50% growth for those slow in math), reaching $25 billion in transactions volume (show me another startup that can say the same and I will invest). Similar to WordPress and Israel’s Zend, Magento has an active open source community, developing extensions and plugins for free. Furthermore, Magento was successful in creating an eco-system of developers who specialize in customizing the platform, for a fee.

The Magento Admin platform provides detailed analytics on conversion, page views and average orders

Varien was founded in 2001 by CEO Roy Rubin and is based in Los Angeles. It launched its paid enterprise solution version in April 2009, pricing it around $5,000-$10,000 per license, depending on the deal. You can get a taste of what the platform looks like on the demo page.

There is a growing number of inquiries from businesses interested in understanding if these products are appropriate for them, compared with commercial offerings

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March 18, 2010 | View Comments
Filed Under Roy Rubin, magento, varien

 

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View Comments to “Magento Keeps Going from Strength to Strength”

  1. ediggs on March 18th, 2010 12:45 pm

    Posted on VC Cafe: Magento Keeps Going from Strength to Strength: http://tinyurl.com/ybk7ktj

    This comment was originally posted on Twitter

  2. ediggs on March 18th, 2010 12:47 pm

    New on VC Cafe: Magento Keeps Going from Strength to Strength http://bit.ly/cgbT0a

    This comment was originally posted on Twitter

  3. clothing store on May 27th, 2010 4:52 am

    well, thank u for ur article, which let me understand so many things.

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