Behind the Site »

Zend - The PHP Company

Shopping unlimited - E-commerce and PHP for free

The formula is as simple as impressive: The less you pay for your eCommerce system the more profit you get from your business. That’s why the new open source eCommerce platform Magento is currently taking off like a bat out of hell. Combining the flexibility of Open Source technology with all features needed within a modern eCommerce solution and the lowest TCO in the market it gives businesses top flexibility, functionality and ROI. Using Magento business owners can choose from different pricing and support models: starting from a free basic version using community support up to professional support services. Magento has been launched in Summer 2007 by Varien, one of the most experienced players in the Open Source eCommerce market with headquarters in Los Angeles, CA; USA. We talked to Varien CEO Roy Rubin.

Enterprise PHP – Management Newsletter: Hi Roy, Magento is quiet popular at the moment. And this is even understated. When did you start developing Magento? When did you publish the first release?

Roy Rubin: Magento was first started in early 2007 with a small core team of developers. The project was later expanded and a first preview version (alpha) was released to the public in late August ’07. The 1.0 production version was available for download on March 31, 2008. To date we have had over 325,000+ downloads and a thriving community of close to 16,000 members has emerged in this timeframe.

EPMN: Why did you develop an other e-commerce system and why did you choose an open source model for it?

RR: As our company grew and acquired expertise in eCommerce (specifically with open source tools and methodologies), our clients became larger and larger. Working with enterprise level clients demanded a technological platform that can scale, grow and follow industry standard best practices. Such a platform was not available within the open source space. Realizing the opportunity we embarked on the project with the understanding that open source’s drive to the enterprise would create an opportunity for such a product to thrive.

The open source model felt very natural for us. We believe we can create value for the community, our partners, clients, and Varien, naturally. We are strong advocates of the model and so far consider it a great success.

EPMN: What implies “Open Source / PHP” for you?

RR: We’ve seen significant growth and interest in open source solutions, and it’s clear that progress is being made in terms of enterprise adoption of open source. There is still a long road ahead but as open source organizations continue to deliver value and products that provide exceptional value, I strongly believe this growth will continue.

The whole development is based on PHP and also on Zend Framework. Can you give a short overview what parts of Zend Framework you are using in Magento and what do you think about Zend Framework?

So far we used many components like caching, authentication, localization and many others out of Zend Framework. There was one specific aspect that helped us a lot. Unlike other rigid frameworks, the 'use-at-will' architecture of the Zend Framework allowed us to pick the functionality we need from the Zend Framework (e.g. ACL, Zend Locale, Zend Translate etc...) and to add our own custom Magento specific functionality as needed.

EPMN: What are the advantages using Magento and what are the biggest obstacles customer will face?

RR: Magento offers unprecedented flexibility and control for online merchants seeking to maximize sales and grow online conversions. The product is very feature rich and offers some exciting capabilities that are setting new benchmarks not only in open source, but in eCommerce platforms in general. For example, our multiple store functionality provides the management of multiple, multi-lingual sites from a single Magento instance. For example, a single Magento installation can operate an apparel, shoes, and accessories online stores with 100% unique design and user experience, centrally managed by a single administrative panel.

The main obstacles we see at this early stage of the product is the learning curve. It will take some time for organizations to realize the full potential of the product.

EPMN: Who is the biggest competition and what is the big difference using Magento?

RR: We see our main competition as the enterprise platforms on the market (both on-premise and on-demand), including ATG, Elastic Path, Demand Ware, Intershop, Venda. Magento’s biggest strength is its flexibility and transparency. Using the platform, business can achieve 100% business requirements without comprising whatsoever. There is no limit to the creativity and what can be done using Magento.

EPMN: Who is using Magento? Can you name some customer names?

RR: We are currently working with large, notable brands in the US and expect to have implementations in the market by June/July timeframe. Our European partners are also doing a great job and in the next few months, impressive names will emerge.

EPMN: What are the key features of Magento?

RR: The key features are

1. Layered Navigation – the ability to drill down and find products fast and effective

2. Multiple site control from a single admin interface

3. Multiple themes and design flexibility

4. Catalog and Shopping Cart price rules (Magento’s rule-based pricing system)

5. Checkout Process - single page checkout, guest checkout and multiple ship-to addresses functionality



EPMN: What kind of services do you offer? How does the business model look like?

RR: Varien, the Magento company, offers a full suite of services for a Magento implementation. Professional Services, Consulting, and Subscription SLA support options are available. We are focused on providing world-class support for businesses that are using Magento as a mission critical application within their organization.

EPMN: In an article published by CNet (http://news.cnet.com/8301-13505_3-9853385-16.html) the author Matt Asay compares Magento with six- to seven-digit expensive ecommerce systems. When customers asking you “What will it cost to implement Magento” – what is your answer?

RR: The cost of Magento’s implementation can have a wide range. It very much depends on the scope and user expectations when it comes to functional requirements. At the base, Magento’s open source license does not carry a cost and as such, the total cost of ownership is very attractive in comparison to commercial competing products.

EPMN: Can you talk a little bit about Varien?

RR: Varien was founded in 2001 as a traditional web development and design firm. The company started to specialize in open source eCommerce in 2004 and started to realize significant growth since. The company is approaching 60 employees worldwide with teams operating out of Los Angeles, CA (headquarters), Poland, Argentina, Canada, and the Ukraine.

EPMN: What kind of services do Varien offer?

RR: Varien is now fully focused on Magento. As such we continue to invest in the product development and provide services to the Magento community.

EPMN: Which role is Magento playing when you look at the strategy of Varien?

RR: Magento is at the core of Varien’s strategy and the company is fully vested in the product. We’ve transitioned our entire business to facilitate product development and services around Magento.

EPMN: What answer do you respond to the question „Varien is a quite young company. Magento is also quiet new. Why should I build my business critical system on an open source project like Magento. Our store will be very important for us. So how save is Magento / Varien”

RR: Varien is an established, profitable company since its inception in 2001. Our years of experience in the eCommerce market give us an insight and depth of knowledge that is rare in the industry. As an open source product, Magento’s release is being tested and scrutinized by tens of thousands of users worldwide. As such, Magento in its short life is already much ahead of well-established competing products. We are confident in Magento’s continued growth and its future.

EPMN: Thank you for the interview and a lot of success for the future.