Varien confirmed reports that it is working on a hosted, software as a service (SaaS) version of its popular, open source ecommerce platform, Magento Commerce.
The possibility of a SaaS version of Magento was first reported on Practical eCommerce (Ecommerce Developer’s sister site) when Rick Wilson, executive vice president for Magento-competitor Miva Merchant, mentioned having a conversation about the SaaS business model with Varien CEO Roy Rubin.
When asked what had motivated Miva to release a hosted version of its own platform and how that release might affect hosting partners, Wilson said, "One of the things that helped solidify our decision was I was having a conversation with Roy Rubin, the CEO of Magento, the open-source shopping cart, earlier this year. Roy told me that Magento is getting ready to launch its own hosted version. I thought, 'Wow. This is it. This is the final company that we really looked at as a competitor who's getting into the hosted space. We'll be the last ones to this party.'"
Magento Confirms SaaS Version Coming
After the published quote from Wilson, Varien Director of Marketing, Koby Oz, confirmed to Ecommerce Developer that a hosted version of his company’s ecommerce platform was, in fact, under development.
“We are very aware of the market conditions and operating environment in the SaaS ecommerce space and we know what’s out there, what can be done better, and what customers really want,” Oz said in an email. “As such, we do expect to release a SaaS version and we are working towards it.“
The Magento Solution Continues to Grow
A hosted version of Magento would mark the second large extension of the platform after the company’s April 2009 release of its Enterprise Edition, which can be licensed for some $11,000 per year or more.
A SaaS version may also mark yet another way for Varien to monetize Magento’s popularity.
