eBay has acquired the open source ecommerce platform Magento. Personally, I’m a fan of Magento’s functionality and flexibility, and also a big fan of open source applications. In general, getting acquired by a large company is a good thing, so this should all be beer and skittles, right?
Maybe.
Open source projects rarely do well when acquired by a large company, especially when that company isn’t really lined up behind open source as a culture, nor when the acquired application isn’t in the company’s wheelhouse (sometimes it’s worse when the open source code is in the wheelhouse: witness Oracle’s botching of OpenOffice or near miss with MySQL). Both demerits are in play with this acquisition: eBay is neither an open source company (like Red Hat or Canonical or Mozilla), and eBay has it’s own ecommerce flea market, not a history of publishing software for users.
eBay is pushing toward its X.Commerce platform: a complete suite for digital marketing and commerce for (what I would assume) mid-market businesses. This makes sense: eBay has PayPal and also recently acquired GSI, who was known for having a decent client list and a string of warehouses around the country (and internationally) to provide logistics and fulfillment. I described this as “following Taobao” a few weeks ago. What GSI wasn’t known for was its ecommerce platform. I’ve heard from around the community that GSI’s platform was in the middle of a complete tear-down and rebuild, as various bits of acquired code simply weren’t playing nicely with each other.
Questions:
- Will eBay really move its main commerce branding beyond the flea market image they have (compared to Amazon)? Can they (without sacrificing the huge cash flow that comes from that flea market)?
- Does GSI’s platform really suck that bad that Magento is seen as a replacement for it? If not, how will the GSI platform and Magento play nicely with each other?
- Magento is open source. If eBay is serious about keeping control of it, they’ll have to get out there publishing code often. Otherwise, we’ll just fork it. Culturally, can eBay pull this off?
I’ve launched a few Magento sites, and I wish them well. I look forward to seeing what’s coming, but I also will start looking for an alternative if things go pear-shaped.

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OSCommerce, long in the tooth and somewhat widely distributed with 200,000 known stores, has
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