We are in the final few blogs on changes made in Magento 2.0, and we are glad to see the amazing response we have received to our blog series on Magento 2.0. If you have not already read them, we encourage you to do so.
- Magento 2.0 – Modern Technology Stack for an Agile and Scalable eCommerce Platform
- Magento 2.0 – Features for Fast and Flexible Development, QA, and Deployment
- Magento 2.0 – Drive Sales and Improve Conversions with Improved Checkout Process
- Magento 2.0 – Easier Frontend Customizations for Building Next Generation eCommerce Stores
- Magento 2.0 – Improved Admin User Interface for Efficient Business Operations
- Magento 2.0 – Improved Scalability and Performance to help you Grow your Business Faster
- Magento 2.0 – Improved Roadmap for Better Planning
- Magento 2.0 – Stay Current with Easier Maintenance and Upgrades
- Magento 2.0 – Plans to Support Earlier Versions of Magento
In this blog, we will look at the changes made to the pricing and licensing model of Magento and how they impact both existing and new merchants, developers, partners, and end customers.
Pricing Model and Licensing Changes
The Change
- With 2.0, Magento has decided to migrate to a per-business license model from its earlier per-server license model. There will be no limits on the number of production and non-production servers that a client wants to run on.
- Going forward, Magento 2.0 license pricing will be aligned with the gross merchandise sales value handled by the Magento eCommerce platform.
- The gross merchandise value (GMV) will mean the total US dollar value of all transactions generated through the Magento software in a year.
- It will exclude: 1) all applicable shopping cart discounts and promotions transacted within the Magento software, 2) shipping and handling charges, 3) taxes, and 4) any other transaction fees.
- Returns will not be subtracted from online revenues.
What this means for Merchants
- Licensing Model – What this means for merchants is that they can build out any type of infrastructure they like for their Magento deployment, including multiple servers, cloud hosting, and more.
- License Pricing – While the new licensing model gives merchants greater flexibility by removing license cost considerations for hosting, merchants with a high gross merchandise sales value might find themselves paying more to Magento than they did earlier. Check out Nexcess.
What this means for Existing Merchants on the Magento 1.x Platform
- Merchants on the Magento 1.x platform have the option to remain under the per-server model agreement. While they can continue using their 1.x platform for three more years, if they decide to upgrade to Magento 2.0, they will purchase the license at the lowest band.
What this means for Developers and Partners
- Licensing Model – This will give partners, including developers and hosting providers, the flexibility to try and optimize Magento server deployments for enhanced performance.
- License Pricing – There is little clarity on how the new pricing will impact partners.
What this means for End Customers
- Licensing Model – With deployment optimizations carried out by merchants and partners, customers might get access to a faster website.
- License Pricing – Subject to how merchants react to the new pricing model, end customers might see an increase in product prices or the discontinuation of other benefits, such as free shipping, if merchants decide to pass on increased licensing costs, if any, to end customers.
Stay tuned for our next blog on Magento 2.0, where we will discuss the changes planned for a new and improved marketplace, Magento Connect.
