Unless you work in marketing, web development, or eCommerce, you may not be familiar with Magento Open Source, the platform that powers hundreds of thousands of online stores worldwide. Despite its reach, Magento often flies under the radar compared to household names like Shopify or BigCommerce. Furthermore, there is often confusion around Magento Open Source and Adobe Commerce. Specifically, how do they differ, and what does open source mean?
In this article, we’ll unpack these questions, explore why Magento Open Source remains a top choice for eCommerce brands, and break down how Adobe Commerce builds on its open-source foundation. By the end, you’ll have a clear understanding of each version and which solution best suits your brand.
What “Open Source” Means in Magento’s Case
Magento has a rich history in the eCommerce world. From its beginnings as a free, downloadable platform to its acquisition by Adobe, Magento remains a key player in the online store ecosystem.
Magento Open Source is the OG, released as a beta version in 2008. The term “open source” means that it’s a fully functional eCommerce platform made available to the public under an open-source license. Essentially, this means:
- The source code is publicly available to download for use
- Businesses can customize, extend, or modify the platform without third-party vendor tie-ins
- There are no mandatory licensing fees for the core platform
Why Magento Was Built Open Source
Magento was originally developed to address the gaps left by other platforms available at the time, which were rigid, vendor-controlled, and difficult to customize. The development team modified, expanded, and rewrote large parts of another platform, osCommerce, to create a new, more flexible and modular platform. Essentially, Magento Open Source was built for businesses that had outgrown the limitations of alternative platforms.
- Enable merchants to own their store, rather than licensing it
- Allow deep customization beyond what SaaS platforms allow
- Seamlessly support B2B and B2C scaling without limits
This foundation is why Magento remains widely popular among large manufacturers, distributors, and global brands.
Benefits of Magento Open Source
Let’s examine the benefits of open source in more detail.
Full Platform Ownership
Today’s plug-and-play SaaS (Software as a Service) eCommerce solutions, like Shopify, are often best described as “rented” storefronts. The platform hosts and manages the store within its own ecosystem, meaning businesses do not have full technical control or direct access to the underlying infrastructure and database. While merchants own their data, the freedom to manage, store, customize, or migrate that data independently is limited by platform rules, APIs, and export constraints.
However, with Magento Open Source:
- You own the code, data, and infrastructure
- There are no forced upgrades or vendor-driven changes
- You can host anywhere (AWS, Azure, Google Cloud, private or on-prem environments)
Unlimited Customization
Magento Open Source isn’t hamstrung by templates or out-of-the-box limitations like SaaS platforms. On an open source platform, developers can build almost anything! That means store owners can tailor the checkout, product types, pricing rules, catalog structure, and integrations (ERP, PIM, CRM, and WMS) to their exact needs. Magento also supports multi-store, multi-language, and multi-currency setups, whereas SaaS platforms typically require separate stores (and separate subscriptions) for multi-brand/multi-region setups.
No Licensing Costs
With open source platforms like Magento, there are no licensing fees. The software is free to download and run, offering a lower barrier to entry for mid-market businesses, manufacturers and distributors, and custom eCommerce builds. With Magento storefronts, website budget goes toward custom development and performance, rather than licensing.
Massive Ecosystem
There’s a reason so many retailers, from mid-size to enterprise-level, rely on Magento. The platform is highly flexible and scale-ready. Magento offers thousands of extensions and enterprise-grade feature sets like multi-store management, advanced product types (configurable, bundled, grouped), segmented pricing and promotions, and flexible tax and inventory configuration. So, Magento is proven at scale for high SKU counts, high traffic, and complex catalogues.
Furthermore, there is a large pool of developers available, making it easy for any business to access professional Magento development when building and customizing their store.
What Is Adobe Commerce?
Adobe Commerce is the enterprise, licensed version of Magento. Although it’s part of the Adobe ecosystem, it’s still built on the same core codebase. Think of it as Magento Open Source plus Adobe’s enterprise features and services. Therefore, it’s not a separate platform as the name may imply – it’s an enhanced version of Magento.
Key Differences: Magento Open Source vs Adobe Commerce
Magento and Adobe Commerce both utilize the same architecture, offering store owners the same customization, flexibility, and scale. However, there are some key differences.
Major Differences at a Glance
- Licensing costs: $0 for Magento vs revenue-based for Adobe Commerce
- Hosting: your choice for Magento vs Adobe-managed or cloud
- B2B features: custom-built on Magento vs included out of the box with Adobe Commerce
- Advanced promotions: custom-built on Magento vs included with Adobe Commerce
- Content staging: available on both
- Visual merchandising: not available on Magento vs available with Adobe Commerce
- Customer segmentation: custom-built with Magento vs included with Adobe Commerce
- Adobe integrations: manual with Magento vs included with Adobe Commerce
Adobe Commerce Strengths
Adobe Commerce is best suited for organizations that:
- Need enterprise B2B features immediately
- Want Adobe-managed cloud infrastructure
- Already use Adobe Experience Cloud
- Have internal teams that want:
- Content staging
- Advanced promotions
- Built-in customer segmentation
- Prefer vendor-supported enterprise SLAs
Built-In Enterprise Tools
Adobe Commerce offers these tools out of the box:
- B2B company accounts & shared catalogs
- Quoting and requisition lists
- Content staging & preview
- Advanced reporting
- Native Adobe Analytics, Target, Sensei (AI)
Why Many Businesses Still Choose Magento Open Source
Despite the recognition of the Adobe name, many companies still prefer Magento Open Source over Adobe Commerce for several reasons.
- They want cost control
- They already have an ERP, CRM, or PIM
- They prefer custom tools
- They want complete architectural freedom
- They don’t want to be locked into Adobe’s ecosystem
For many manufacturers and B2B sellers, using Magento Open Source provides the customizations they prefer, offering a leaner, more flexible solution.
Cost Considerations
From a budgeting standpoint, these are the high-level cost considerations for each platform.
For Magento Open Source
- No license fee
- Costs go toward development, hosting, and site maintenance
- Scales well financially
For Adobe Commerce
- Annual license based on GMV (Gross Merchandise Value )
- Higher total cost of ownership
- Best justified when:
- Enterprise features replace multiple third-party tools
- Adobe stack is already in use
How We Typically Guide Clients
As eCommerce development experts, we typically guide clients’ platform selection based on several criteria:
Choose Magento Open Source
We recommend Magento Open Source to clients who:
- Need flexibility and control
- Have complex integrations
- Want to avoid long-term licensing costs
- Are scaling thoughtfully
Choose Adobe Commerce
We recommend Adobe Commerce to clients who:
- Are enterprise-level today
- Need B2B features immediately
- Want Adobe-managed cloud and tools
- Are already invested in Adobe products
Bottom Line
- Magento Open Source = Maximum control, flexibility, and cost efficiency
- Adobe Commerce = Enterprise convenience, bundled features, and vendor support
Both solutions are powerful. However, the best choice depends on a business’s maturity, complexity, and long-term strategy, not just budget. At Living Proof Creative, we have decades of hands-on experience building and optimizing eCommerce stores for both B2B and B2C, and Magento is our specialty. This expertise positions us to guide businesses at any stage of their journey, helping them select the solution that aligns with their current needs and future goals.
Contact Us Today
Contact us to assess which platform best supports your goals, and we can help you achieve them.
