MAGENTO, HYBRIS, IBM,

ORACLE COMPARISON
April 2016
Tero Juola
Certified Solution Architect
 BEST WAY TO DESCRIBE
MAGENTO?
Magento did same for e-commerce platforms as iPhone did for smart phones.

Magento extension marketplace is like Apples App Store

Whatever feature an e-commerce merchant needs it can be installed virtually as simple as

App to iPhone

Adding or altering Magento store functionality is not an IT project that takes weeks

Time to Market, ROI and TCO is beyond imagination for old school e-commerce merchants

Magento is a competitor with complete different business model in e-commerce market

Copyright Tero Juola, Certified Solution Architect, April 2016

 AGENDA
Introduction

Difference between CMS with shopping cart plugin and E-commerce

Gartner March 2016 E-commerce Magic Quadrant

Forrester Wave Comparison

Magento, SAP hybris, IBM WebSphere Commerce and Oracle ATG TCO, TTM, ROI comparison

Magento, SAP hybris, IBM WebSphere Commerce and Oracle ATG references

Difference between Magento and SAP hybris, IBM WebSphere Commerce, Oracle ATG

Magento marketshare January 2016

Magento in depth and for whom

Magento Enterprise and Community Edition features comparison and cap analysis

Typical Magento Project

Questions

Copyright Tero Juola, Certified Solution Architect, April 2016

 TERO JUOLA
19 years of experience on e-commerce (since 09/1996)

15 years of experience on IBM WebSphere Commerce, 11 trainings, 5 Specialist & Expert certifications

4 years of experience on Magento, Solution Specialist certification

1 year of experience on hybris, training

Over 40 trainings for IBM, Sun Microsystems, Oracle software & hardware, 13 certifications on WebSphere, MQ, DB2

Certified Solution Architect

Over 30 e-commerce projects in different hands-on roles (hobbyhall.fi, sokos.fi, stockmann.com, akateeminen.com, netanttila.com,
blackbeltdivers.us, beibamboo.com, spu.fi, helma.fi, topsport.fi, bauhaus.fi, pauligprofessional.com, marimekko.com, hexaplan.fi, pauligshop.fi, klick.ee)

E-commerce merchant since 1997 (International; electronics, sporting goods)

6 years at Capgemini as a Leading Consultant, 4 years at Sun Microsystems as a Software Pre-sales Architect, Satama Interactive, S-Group, Tieto,
Oracle, Vaimo

Copyright Tero Juola, Certified Solution Architect, April 2016

GARTNER E-COMMERCE MAGIC
QUADRANT MARCH 2016

Copyright Tero Juola, Certified Solution Architect, April 2016

 FORRESTER WAVE
COMPARISON
Shortlist comparison, scale 1-5
(* based on Forrester Wave B2C eCommerce Platforms Q42013, Q42014 with updates for Nordic market presence

Magento 1.12 EE WebSphere Commerce 7 Demandware SaaS hybris 4.8 MCS Microsoft CS9
Solution & Technology architecture 4 4 3 4 2

Site management 4 4 5 3 3

eCommerce features 5 5 4 4 3

Marketing tools 2/4 (* almost all modules avail. 5 5 3 2

Customer management 3 3 3 2 3

Community and social commerce 5 5 4 3 2

Internationalization 4 4 5 4 3

Support 4 4 4 2 4

Agility & TCO with new features 5 2 2 1 1

Pricing 5 1 2 2 3

Product & Company strategy 4 4 2 4 3

Market presence, installed base, growth 5 2 2 1 1

Summary 52 43 41 33 30

Copyright Tero Juola, Certified Solution Architect, April 2016

MAKE NO MISTAKE WITH CMS
CMS means Content Management System. CMS is used to build and develop dynamic web pages for websites. The
examples of CMS are Wordpress, Drupal, Joomla, etc.

E-commerce means Electronic Commerce. E-commerce is a one type of website used for selling and buying products
online. The examples of E-commerce are Magento, SAP hybris, IBM WebSphere Commerce, Oracle Commerce, etc.

Shopping cart plugin does not make CMS an E-commerce software

WooCommerce and all the other plugin type shopping cart extensions for Wordpress, Drupal, Joomla CMS are
missing 99% of the features that are needed to run an E-commerce site

CMS with shopping cart plugin and E-commerce as systems are just incomparable

Vice versa E-commerce systems have CMS that are average at best

Businesses need both and the best solution is to integrate these two systems

Copyright Tero Juola, Certified Solution Architect, April 2016

 DONT GO TO A GUN FIGHT
WITH A KITCHEN KNIFE
Do you have time to talk about the miracle of Shopify prices? Starting with 9 bucks a month you get basically
everything you need to run your e-commerce site

What have you been told about offers too good to be true?

Actual cost is project + fixed 2 % from your online sales + 9-179 $/month

Complete vendor lock-in, no customisations, no API access, only few modules, no module customisation

Every shop looks like another. No shopping flow customisation. No own branding.

Only B2C stores, no localisations, no integrations.

Avoid like plague consults that offer Shopify based solution. Try it your own if you want to.

Demandware has same business model except much higher costs

Copyright Tero Juola, Certified Solution Architect, April 2016

 MAGENTO, HYBRIS, WC, ATG
Magento hybris WebS. Com. Oracle ATG
(Marketshare 29,1%) (Marketshare 0,2%) (Marketshare 0,6%) (Marketshare 0,1%)

Project 1-5 months 7-9 months 9-12 months 1-4 years

15-250 k$ 500-750 k$ 1 m$ 10-100 m$
SW licenses CE 0 $ 2-3 x 70 k$ 5-6 x 194 k$ 1-6 m$
(maint. lic. sup.) EE 22-250 k$/y 50 k$/y 200 k$/y 200-1000 k$/y
Hosting 200-1000 $/m 6-8 k$/m 10-12 k$/m 10-12 k$/m
Solution dozens few couple one
Providers
Cost of 4-37 hr/ 500-2000 hr/ x times cost x times cost
localisation country country of the project of the project
ROI 159-176%
Payback time
ROI 5.2-5.8 months - - -
(Forrester study)
Copyright Tero Juola, Certified Solution Architect, April 2016
 HEADS UP SAP RUNNERS
If your company runs SAP, then you need to have SAP Named User License (NUL) for every customer:
89 $ per customer per store + 18% per year

Usually companies go around this in web shop integration so that all online sales is directed to one generic SAP
customer account (First Name: Web, Last Name: Sale). Only one Named User License is needed for online
customers.

SAP hybris license conditions forbid to use this loop hole anymore.

SAP ERP & hybris users must have SAP Named User License for every online customers for now on

The license cost impact is huge especially for SAP hybris B2C businesses

2 million customers x 89 $ = 178 m$ + 32 m$/year there after

Interested in Open Source?

Copyright Tero Juola, Certified Solution Architect, April 2016

 REFERENCES

Magento: SAP hybris: IBM WC: Oracle ATG:

- Harpers Bazaar - 21 Diamonds - Sears - Fruugo: took over 3 years
- Nicole Miller - 3M - Ikea to build and cost over 37
- Bauhaus - La Fayette - Argos m generating 8066
- Christian Louboutin - Electrolux - Boots revenue before bankruptcy
- Gant - Agco - L.L.Bean - Ikea has had Oracle
- Rebecca Minkoff - Aldo - Sony Commerce migration from
- Easton - Asics - Panasonic WebSphere Commerce
- Olympus - Asos - Canon project going on since
- Nike - Audi - Seagate 2010.
- Paul Smith - Alfa Laval - Roche Still runs on WebSphere
- Mont Blanc - Dr. Martens - Goodyear Commerce.
- Bjrn Borg - Airgas - Mazda - Walmart
- Tracy Reese - Bauhaus - Volkswagen - JC Penny
- Peter Millar - Berner - Audi - Walgreens
- Viewsonic - Bridgestone - Staples - Kohls & Neiman Marcus

Copyright Tero Juola, Certified Solution Architect, April 2016

 MAGENTO VS. OTHERS
SAP hybris, IBM WC, Oracle ATG: Java EE
closed source, vendor lock-in, expensive to scale

Magento CE & EE: MySQL, PHP, JavaScript

100% open source, no vendor lock-in, inexpensive to scale

Magento:
- shortest time to market (months vs year or over)
- lowest total cost of ownership (no license/maint. costs, EE per server subscription)
- highest return of investment (Forrester: 176-159%, payback time 5.2-5.8 months)
- no vendor lock-in
- 6500+ extensions
- 2000+ certified developers

Copyright Tero Juola, Certified Solution Architect, April 2016

MAGENTO MARKETSHARE
JANUARY 2016

Copyright Tero Juola, Certified Solution Architect, April 2016

 MAGENTO
Published first time August 2007 by Varien Inc.

Based on Apache, PHP, Zend architecture framework and MySQL

Runs virtually on any platforms incl. clouds, small footprint, high performance, can be clustered

eBay bought Magento February 2010, sold November 2015 to Permira Funds

Community Edition is licensed under Open Software License/Academic Free Licence and supported by the Community. Current CE version
2.0, EE 2.0

Enterprise Edition is licensed and supported by Magento (22-250 k$/year)

Magentos CE marketshare 09/2014 was over 34%, over 240 000 installations. EE 9 %

Magentos functionality and features can be extent and customised with thousands of ready made extensions leaving the core system/code
untouched

OOP, MVC, EAV, 100% open source, 6500+ extension marketplace

Copyright Tero Juola, Certified Solution Architect, April 2016

 MAGENTO
Suits for small businesses (Community Edition; cost effective)

Scales for enterprises (Enterprise Edition; 2-3 servers, +500k SKUs, +50k transactions/day)

Suits for growing businesses (Migration from CE to EE)

Suits for backend integrated (WS & Rest APIs, ERP connectors)

Thousands of Magento developers around the world

Hundreds of Magento solution and hosting partners around the world

Magento project costs and takes time only a fraction compared to SAP hybris, IBM WebSphere
Commerce or Oracle ATG project

Copyright Tero Juola, Certified Solution Architect, April 2016

 MAGENTO EE VS CE
FEATURES
Magento EE Magento CE
Code-level Access x x

Web Services API x x

Mobile HTML 5 Theme Pre-integrated x x

Extensions x x

API Integrations x x

Themes x x

Mobile Commerce x x

Multiple Stores x x

Multiple Store Views x x

Advanced Administration Roles x x

Persistent Shopping Cart x x

Flexible Pricing Rules x x

Analytics and Reporting x x

Layered Navigation x x

International Commerce and Multiple Languages x x

Shipping Rules, Payment Configurations and Gateways x x

Product Configurations x x

Up-sells, Cross-sells, Related Products x x

SEO x x

Flexible Couponing and Promotions x x

Customer Accounts Management x x

Order Management x x

Minimum Advertised Price x x

Copyright Tero Juola, Certified Solution Architect, April 2016

 MAGENTO EE VS CE
FEATURES
Magento EE Magento CE + extension from Magento Marketplace

Advanced Customer Segmentation and Targeting x http://www.magentocommerce.com/magento-connect/catalogsearch/result/?

q=segmentation&pl=0

Private Sales, Events, Invitations x http://www.magentocommerce.com/magento-connect/catalogsearch/result/?q=private

+sales&pl=0

Gift Registry and Gifting Options x http://www.magentocommerce.com/magento-connect/catalogsearch/result/?q=gift

+registry&pl=0

Reward Points x http://www.magentocommerce.com/magento-connect/catalogsearch/result/?q=Reward

+Points&pl=0

Advanced Return Management Authorization x http://www.magentocommerce.com/magento-connect/catalogsearch/result/?

q=rma&pl=0

Store Credits x http://www.magentocommerce.com/magento-connect/catalogsearch/result/?q=store

+credit&pl=0

Full-Page Caching x http://www.magentocommerce.com/magento-connect/catalogsearch/result/?

q=cache&pl=0

Call Center with Assisted Shopping x http://www.magentocommerce.com/magento-connect/catalogsearch/result/?

q=zendesk&pl=0

Solr Search x http://www.magentocommerce.com/magento-connect/catalogsearch/result/?

q=solr&pl=0

Staging, Merging and Rollback of Content x -

Enhanced Catalog and Content Management System x -

Pricing and Promotion Permission x -

Technical Support x -

Built-in Security x -

Copyright Tero Juola, Certified Solution Architect, April 2016

TYPICAL MAGENTO PROJECT
Typical Magento Project Schedule Start Finish

Definition W1 W1

Project Plan W1 W2

Project Tasks W1 W2

Project Plan & Tasks Approval W2 W2

PSD Draft W2 W4

PSD Approval W4 W4

Magento Installation W2 W2

Magento Int. Configuration W2 W10

Magento Training W3 W3

Magento Ext. Configuration W4 W10

Layout & UI Installation W5 W10

Build W5 W10

Functional Approval W10 W10

Quality Control W11 W11

Magento Training W11 W11

Approval Tests W12 W12

Publishing Approval W12 W12

Launch W13 W13

End of Project W20 W20

Copyright Tero Juola, Certified Solution Architect, April 2016

 WRAP UP
Gartner March 2016 E-commerce Magic Quadrant

Forrester Wave Comparison

Magento, SAP hybris, IBM WebSphere Commerce and Oracle ATG TCO, TTM, ROI comparison

Magento, SAP hybris, IBM WebSphere Commerce and Oracle ATG references

Difference between Magento and SAP hybris, IBM WebSphere Commerce, Oracle ATG

Magento marketshare January 2016

Magento in depth and for whom

Magento Enterprise and Community Edition features comparison and cap analysis

Typical Magento Project

Questions

Copyright Tero Juola, Certified Solution Architect, April 2016

 Thank you
Questions?

Tero Juola
linkedin.com/in/tjuola