Magento Community vs. Enterprise – Which is Right for Your Online Store?
Whether you are starting out as an e-commerce business or considering replatforming, choosing the right platform is only half the battle. Magento’s open-source nature offering endless customizations makes it a top contender. But once you’ve made the platform choice, it leads you to the next crossroad – choosing the Magento edition, which is more commonly known as the Magento Community vs. Enterprise battle.
There is a lot of confusion around Magento editions. The Adobe acquisition brought in new names to these editions, adding to the confusion. As an e-commerce business owner, it’s one more thing to do to sit down and understand these terms trying to decide which edition to choose from, on top of your hustle. To help ease things, we have done the detailed research for you so that it’s only one blog you read to make a decision.
First, what are the Magento editions?
Before Adobe acquired Magento, the platform offered two editions:
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- Magento Community Edition (CE)
- Magento Enterprise Edition (EE)
After the acquisition, Adobe came up with their own names for these along with adding a new edition to the list:
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- Magento Open Source (= Magento Community Edition)
- Adobe Commerce (= Magento Enterprise Edition = Magento Commerce)
- Adobe Commerce Cloud (= Magento Commerce Cloud)
Here’s the first-level information that you need in your Magento Community vs. Enterprise analysis:
1. MAGENTO COMMUNITY:
This is a free edition with basic e-commerce features like cart, payment, etc., ideal for small businesses. It is like a stripped-down version of the Magento Enterprise Edition. You can customize the free version to your store needs and then decide on purchasing third-party integrations to increase store functionalities. Keep in mind that Magento Community is not a SaaS solution. This means you will need to buy hosting.
2. MAGENTO ENTERPRISE:
This is a paid version and comes with advanced features. We will be going through the prices later in this blog. If you have a larger business that requires high-level customizations, added security, improved performance, etc., this version is for you. You will still need to purchase hosting, domain name, SSL, etc.
3. MAGENTO COMMERCE CLOUD:
This is a combination of Magento Enterprise and cloud hosting. You only pay for the resources you use and as your business expands, more server space is allocated to your store. Great for businesses that have plans to enter the international market.
Now that we are familiar with the editions, let’s dig deeper into the Magento Community vs. Enterprise versions.
What Do You Get With Magento Community Edition?
With Magento Community edition, you get all the basic modules like shopping cart, checkout and payment, switching currencies and languages, and product segmentation. You get a suite of tools for reporting, marketing, product management, order management, etc.
Stores built on this edition are mobile-friendly. There’s also the ability to transform your website into a Progressive Web App (PWA) – meaning your website will have the look and feel of a native app. You can integrate APIs of your ERP, inventory, and other systems you use with ease. There are provisions to integrate third-party tools to extend your store functionalities. However, you will need to have technical expertise for this.
If you are building a small e-commerce business, the Community edition allows you to run your store on the trusted Magento engine without the hefty price tag.
What Do You Get With Magento Enterprise Edition?
This is where the real deal is, especially for a large enterprise.
Here’s a glimpse of what it brings to the table: You get business intelligence dashboards with ready-to-use reports. You can manage the entire marketing of your site – from customer segmentation to pricing to returns processing – all from the dashboard. This edition comes with a WYSIWYG page builder, configurable order tracking widget, return management authorization, full-page caching, PCI compliance, and more.
This is in addition to the features you get in the Community edition, which makes it a well-rounded e-commerce solution. Naturally, it demands a bit more in terms of installation time, cost, and expertise. But you also gain a high-performance, scalable store with added security.
Magento Community vs. Enterprise – Key Differences
1. Magento Community vs. Enterprise: Performance
Magento Community Edition performs well for businesses that have few resources on the website. You can expect fast performance for websites with product ranges fewer than 200,000. Performance can be further improved through strategic third-party integrations.
However, if you have a large-scale online store that handles millions of page visits and hundreds of thousands of orders per hour, the Magento Enterprise edition is the superior choice. This edition comes equipped with out-of-the-box tools designed to manage extensive data effortlessly. It has capabilities to optimize website performance through advanced indexing and efficient caching mechanisms. Also, this edition scores brownie points in scalability through features like minimizing and bundling Javascript and compressing images. Naturally, it entails a higher installation time and cost than the Community edition.
2. Magento Community vs. Enterprise: Security
All cards on the table, Magento Community version’s security isn’t top-notch. It includes data encryption but isn’t PCI compliant, which means your customers’ credit card data will not be secured. An alternative could be third-party extensions for decent protection. You get community-driven security patches but you need to update them manually.
If you can constantly keep an eye out for security issues with the store and can have a developer ready to work on those as soon as they arise, Magento Community edition should work for you.
Magento Enterprise edition, on the other hand, offers unbeatable advanced security features that include PCI compliance. For example, you get card tokenization, external penetration testing, and bug bounty programs which means your customers’ credit card data is well secured. It comes with built-in secure payment gateways like PayPal, Braintree, WorldPay, etc. which adds to site credibility and customer trust. You also get advanced data encryption, advanced password management tools, and security patches as regular updates.
3. Magento Community vs. Enterprise: Technical Support
Magento only provides native technical support for the Enterprise edition. However, you will get help from forums, open-source communities, documentation, technical blogs, etc. The Adobe website is a great resource for comprehensive tutorials, guides, downloads, security updates, and more. For complicated issues, you can always commission a developer. Or, you can get into a maintenance contract with a third-party development firm.
The Enterprise edition comes with a dedicated account manager and 24×7 support, ideal for large businesses with complex requirements. However, given that companies generally allocate about 10% of their revenue to store maintenance, the only dealbreaker is the 24-hour support availability for the Enterprise edition.
4. Magento Community vs. Enterprise: Marketing Tools
With the Magento Community edition, you can create and manage product catalogs, run promotions, and use basic SEO features like customizing meta tags, URLs, headings, etc. You get features like free shipping options, multi-tier pricing, catalog promotional pricing, and product bundles.
Magento Enterprise comes with a suite of advanced marketing tools. This includes targeted marketing and segmentation, allowing you to create personalized shopping experiences for different customer groups. You can segment customers based on various criteria, such as purchase history, location, and behavior. It also has A/B testing, email marketing automation, and loyalty program integration. This edition also offers content staging, which enables businesses to plan and schedule marketing campaigns and product launches well in advance.
5. Magento Community vs. Enterprise: License Cost
Magento Community is a free version. Below is the breakdown of the Magento Enterprise license cost:
| ANNUAL SALES REVENUE | MAGENTO 2 ENTERPRISE EDITION COST |
| $0 – $1 million | $22,000 |
| $1 – $5 million | $32,000 |
| $5 – $10 million | $49,000 |
| $10 – $25 million | $75,000 |
| $25 – $50 million | $125,000 |
If you are planning to build a new store on Magento from scratch, there are going to be additional expenses on top of the license cost. The true cost of owning a Magento store includes hosting, domain name, SSL, third-party extensions, web design and development, and more.
Magento Community vs. Enterprise: Which One Should You Choose?
The Magento Community vs. Enterprise edition isn’t a battle with a winner. It all depends on your needs.
- If you are a small business building a brand, Magento Community edition is the best choice.
- If you are a larger enterprise with advanced marketing, customization, and support needs looking to replatform, Magento Enterprise is the better choice.
The Community version comes with all the functionalities that an e-commerce business needs and has opportunities for third-party integrations. Keep in mind that you can always switch to the Enterprise edition as your business begins to scale, expand geographically, have high traffic volumes, or have complex requirements.
Enterprise is a premium edition and is recommended when your business has achieved stability and you would like to replatform for advanced e-commerce functionalities like larger catalog management, enhanced tax calculation, faster checkout, and faster re-indexing.
FAQs About Magento Community vs. Magento Enterprise Editions
1. What is the main difference between Magento Community and Magento Enterprise?
The primary difference in Magento Community vs. Enterprise edition lies in the level of features and support. Magento Community is open-source and free, while Magento Enterprise is a premium, fully-featured platform with advanced marketing tools, customer support, and more.
2. Is Magento Community suitable for small businesses?
Yes, Magento Community is often a great choice for small to medium-sized businesses due to its cost-effectiveness. It provides a solid e-commerce foundation with essential features and customization options.
3. What kind of businesses should consider Magento Enterprise?
Magento Enterprise is best suited for larger enterprises with advanced marketing needs, complex product catalogs, and a demand for sophisticated customer segmentation and personalization.
4. Can I upgrade from Magento Community to Magento Enterprise if my business grows?
Yes, Magento offers a migration path for businesses that start with Community and later wish to upgrade to Enterprise. This allows you to scale your e-commerce operations as your business expands.
5. Are there any ongoing costs associated with Magento Enterprise?
Yes, Magento Enterprise is a paid solution, and you’ll have ongoing licensing fees. However, the added features, support, and scalability can often justify the cost for larger businesses.
6. Can I install extensions and plugins on both Magento Community and Enterprise editions?
Yes, both Magento Community and Magento Enterprise support the installation of extensions and plugins to enhance functionality.
7. What’s the best way to decide between the Magento Community vs. Enterprise editions for my business?
To make an informed decision, consider your business size, budget, and specific needs. Smaller businesses with basic requirements may find Magento Community suitable, while larger enterprises with advanced marketing and customization needs may prefer Magento Enterprise. If your business has unique requirements, consulting with an e-commerce expert is advisable.
Looking to Make the Move to Magento?
At Codaemon, we understand the challenges businesses face in choosing the right e-commerce solution. With our in-depth knowledge and expertise in Magento development, we’re here to guide you through the decision-making process. Whether you’re a small business looking to establish your online presence or a large enterprise seeking advanced customization and support, we have tailored solutions to meet your needs.
Our team of certified Magento developers brings decades of combined experience to the table, ensuring that your online store is built to perfection. From initial consultation to post-launch support, we’re committed to delivering exceptional results that drive your business forward.
Ready to take the next step with Magento? Let Codaemon be your trusted partner in e-commerce success. Contact us today at (888) 811-3073 or support@codaemon.com to discuss your project requirements and explore how we can help you achieve your goals.