Magento is the acknowledged king in e-commerce solutions, capturing 29.1 percent of total market share by 2016.
One of the oldest online commerce platforms enjoys great success with customers in the digital retail domain like Burger King, Christian Louboutin, Nine West, and Fraport to give some names.
Magento’s Community Edition and Enterprise Edition are both extremely powerful and popular solutions but with a significant difference in terms of cost.
The Community Version is a free and open source but the Magento Enterprise Edition is quite valuable and steeply priced. That’s why businesses often wonder what version is right for them and whether it is worth opting an extra cost for the Enterprise version.
Now we come to, What is Magento Community edition?
Magento Community Edition relates to a free, open-source eCommerce platform which anyone can download and use to create an online store.
For small businesses, it’s perfect and ideal for small-scale businesses that want to experiment and learn how to build an eCommerce site.
As it’s open source, anyone can modify it in a way to meet their own requirements. Additionally, you can take advantage of the Magento extension marketplace to increase your functionality.
However, it takes a long time and resources for any business, with no experience or little experience, therefore. It’s always recommended to be partners with an experienced IT firm to providing reliable web application development services to develop a bug-free Magento e-store.
What is Magento Enterprise edition?
Magento Enterprise edition is the superior paid version of Magento. It is designed for those who think Community edition is not enough. Mostly used by bigger online stores that need advanced and leading features with more customizable options.
On a whole, the Enterprise edition is entirely backed by the Magento team. Subscribers get full support by both phone and email. Pricing also involves security updates, special features, and exclusive product improvements.
The license fees cost about $22,000/year.
Similarities between Magento Community and Enterprise Edition
- Both are open source platforms
- Have the same core features and are part of the Magento ecosystem.
- Both use Magento Connect and gets huge benefits – the Magento Extension marketplace and use apps to increase functionality.
- Both Magento Community and Enterprise edition allow you to use webserver API to integrate with different databases.
Magento Enterprise vs Community Edition Features
Pricing: Magento Community Edition is absolutely free but the cost of Magento Enterprise Edition is about $22,000/year. In addition, you will acquire the implementation cost.
Security: There is a shortage of credit card tokenization or advanced payment security in Magento CE, which might become a problem because banks require these features. The free version is not PCI compliant either.
Scalability and performance: Magento Community Edition often appear faster, but this is because it is usually used by small Web Stores with fewer modules.
Businesses that require more features and capabilities buy an Enterprise Edition because overall performance with paid version is much better.
EE allows websites to scale faster and provides support for running multiple databases which can be used for checkout, order management, products etc.
The new Enterprise Cloud for EE dramatically triggers deployment. Another EE benefit is full page caching because it ensures an easy shopping experience.
Functionality: At the top of the main features, the paid version has many advanced features like segmentation with targeted offers, minimum advertised value, return management authorization, pricing, and promotional permission, an advanced catalog, and CMS, call center software with assisted shopping etc.
Dynamic marketing and search: EE mainly aim at privatization, customer experience, and analytics. It uses advanced content staging, sophisticated client segmentation, targeted content, and shopping cart reminder notifications.
The Enterprise Edition also offers Elasticsearch which is a major feature that allows customers to find products quickly. Apart from this, customers can sort and narrow their results based on fixed parameters.
Which Magento editions to choose?
The free Community Edition is quite strong and if your business doesn’t need a highly customized and scalable solution, then it works fine.
If you are dealing with 6-figure revenue (such as millions of dollars in revenue per year), it is highly advised to use Magento Enterprise, based mostly on its “extraordinary” functionality that cannot be enjoyed in Community.
But Magento Community Edition is essentially a platform of developers. It is designed for skilled developers and technically skilled traders who are familiar with the build/development aspect of the web store.
If you have a small-medium store, choose Magento Community Edition, but if you need a large product catalog and advanced catalog management, then Magento EE may be right for you.
For some sites, Enterprise is understandable. There is a marketing team, internal or external which will help plan usage for marketing suits. They might have a team to analyze the usage and to maintain these facilities consistently. If not, start with the Community right away.
To clear more things, these are the figures for the average Magento project for each version:
- Unique visitors/month > 1,000
- Orders/month > 100
- Turnover > 100,000 euro
- Shop management FTE 0.5 – 2.0
- Implementation time 6-8 weeks
- Implementation cost 10,000 – 60,000 euro
- Hosting costs 150 – 300 euro
- License cost – 0
- Unique visitors/month > 50,000
- Orders/month > 500
- Turnover > 1,000,000 euro
- Shop management FTE > 5.0
- Implementation time 14-16 weeks
- Implementation cost > 50,000 euro
- Hosting costs 600 – 2,000 euro
- License cost – $14,420
Magento EE offers the following advantages on comparison with CE:
- Faster re-indexing and speedier page load times
- Full page caching
- More easy roll-back/integrated backup systems
- Advanced tax calculation
- Faster checkout flow
- Excellent administrator roles, logging, and site access rights
- Advanced marketing and segmentation
- Social media integration
- Testing and QA
- Bigger catalog management
In this way, for many businesses who have near future expansion plans, there is a great sense to invest in Enterprise Edition, but if you don’t have the above-mentioned feature requirements, then the Community Edition works well.
If you are still unsure, consult an experienced Magento eCommerce development company to find the most suitable solution for you.
Magento Enterprise all features: (All community +)
- Content staging and merging
- Advanced ACL
- Private sales, events, and invitations
- Customer segmentation
- Loyalty system
- Automated email marketing reminders
- Assisted shopping
- Full page caching
- Recurring payments
- Customer attributes
- SOLR search
- RMA functionality
- Minimum advertised price
- Persistent shopping cart
Magento Enterprise CMS Functionality:
All Things in Community Edition +
- Version control
- Publication restrictions
- Content hierarchy