 Live from Las Vegas, it's theCUBE, covering Magento Imagine 2019, brought to you by Adobe. Welcome back to theCUBE, Lisa Martin with Jeff Frick. We have been covering Imagine 2019 in Vegas all day today, talking all things e-commerce innovation, technology, the customer experience. Jeff, one of the biggest themes I think that we've heard today from all of our guests is how strong that this community is, how naturally it was developed in the last 10 years and how influential it is to delivering exceptional customer experience technology. In fact, Jason said without the community, there would be no Magento. So it's ingrained in the culture, it's ingrained in the DNA. I think, you know, doing some of the research, you know, there was people talking about the dark days of Magento as it went into eBay and apparently whatever that plan was, it didn't work and then out of eBay into private equity, out of private equity into now Adobe and it sounds like the community's kind of been following along and maybe they were holding their breath a little bit a year ago, but it sounds like they kind of got through that kind of concern not whole if you will and kind of popped out the other side and realized there's a whole lot of opportunity that comes to Magento via being part of Adobe now that they didn't have before. So I think it sounds like they're good with it and they're ready to go and nothing but opportunity ahead. Yeah, you know, I think with any acquisition and you know, we cover so many technology shows and we've been part of acquisitions before at different companies, they're challenging. There's always, I think, natural trepidation. I think it's just a natural response that anybody probably from an executive to an individual contributor level is going to have but one of the things that came up so resolutely was how organic the Magento community has been developed over time that like you said, as Jason was saying without it, there is no Magento. Not only are they influential, it's very much a symbiotic relationship that I pleasantly, surprisingly sounds like it's been integrated very nicely into Adobe and to your point, they now are saying, wow, there's a tremendous amount of technology and resources that we didn't have the opportunity to leverage before talking about the experience, the digital experience business of Adobe which is growing 20% year-over-year 2017 to 2018 on a very strong trajectory this year. A lot of opportunity to enable merchants of any size to have this really 360 degree of the customer experience and manage it with analytics and advertising and marketing and add the commerce piece so that they can take that marketing interaction and actually convert it to revenue. Right, right. I mean, look at Adobe, they brought in Magento which we know, late last year, they also brought in Marketo at almost about the same time, 4.7 billion dollars. So they're making huge moves and I think it's a pretty unique situation where again, they come from the creative and now with the data and a sophisticated platform and talking about the A-B testing again, it used to just be A-B, now it's A-B times literally millions and millions of customized experiences delivered to the client and then now, again, I think a really interesting point of view is where then you bring the commerce to the point of engagement rather than trying to use the engagement as a way to drive people to commerce, I mean, they seem really well positioned. I think they're going to really enjoy people like Accenture and some of the other big system integrators that now are going to be behind this platform. So it seems to be a fit marriage made in heaven. It almost makes you wonder why it was so late to have any commerce platform which is the thing that kind of surprises me I think the most. Yeah, it also gives them the opportunity to compete with Shopify and with Salesforce commerce and kind of harness this brand power but you talked about something that we've talked about all day and that's bringing the transaction and the commerce experience to me as a consumer wherever I am, whether it's in-shop, in-app shopping through Instagram, rather than delivering me a personalized experience leveraging the power of these technologies to understand the right things about me as a consumer to deliver me an experience that is frictionless. It's going to allow me to have a seamless experience. Talked about that with progressive web apps and how that's going to enable next generation shopping for merchants of all sizes to enable don't just engage me on my mobile if that's where I want to be. If you don't have the opportunity to convert me seamlessly to actually transact there's a huge addressable market or gap in converting that to revenue which Jason Wolsey also talked about kind of thinking about next steps for Adobe and what they're going to be able to do to help those merchants capture in real time leveraging the power of technology, emerging technologies like AI in real time to make that shoppable moment turn into dollars for the merchants. Right, a lot of great things. I thought it was interesting having TJ Gamble on and talked about co-opetition, right? Co-opetition is such a fundamental part of Silicon Valley and the world in which we live in and he said, you know, if you're making fat margin as Jeff Bezos loves to say your margin is my opportunity you're going to compete with Amazon but in the meantime you got to compete with them. And so to enable integration into the Amazon platform with your Magento store the integration and the Google shopping integration into Instagram purchases and app purchases. I mean, these are really opening up the opportunities for these smaller retailers, mid-sized retailers to compete in a really complicated and super hyper competitive world but now they can again focus on their brand which we're here over and over focus on their experience, focus on their community and leverage some of the specific technology under the covers across platform across different kind of modes of buying because the other thing we hear over and over and over is you got to give people choice. You can't say no. So if they want to buy it through Amazon let them buy it through Amazon. If they want to buy it through Instagram let them buy it through Instagram. If they want to come to your e-commerce site let them come to your e-commerce site but you know, in opening up all those channels for the merchant to be able to execute their transactions regardless of how the customer got to them or how more importantly they got to the customer. And you know, the SMB front is really key that you brought up because in the last year since the acquisition was announced about a year ago and completed, I think it's September of 2018 there was not just concerned from the community that we talked about at the beginning of the segment but also the small and medium business like well Adobe has a really big presence in enterprise is that going to be cannibalized with this acquisition of the gentry who had such a strong presence with the smaller merchants and you mentioned some of the things with Amazon and Google that we heard yesterday and today I think really assuaging some of those concerns that the smaller businesses had but also allowing these smaller merchants to sort of level the playing field and have access to like the power of a branded Amazon storefront that allows a smaller business to get some differentiation whereas before they didn't have that. So I think we heard a lot about that today and how I think those smaller brands probably maybe breathing sigh relief that this acquisition is really going to enable them with a lot more tools but not at the cannibalizing what they have been doing with Magento for so long. Right, right. It's some other fun discussions that I'd really enjoyed the time with Tina talking about influencer marketing. It's amazing how that continues to evolve at a really fast pace, right? A derivation of professional endorsement which is something we've known ever since Joe Naim was put on stockings many moons ago but to see it go from big influencers to micro influencers, you know, how do you sponsor people to give them money, engage as a brand and still maintain that they legitimately like your product, use your product? I think it's a really fascinating space again to be able to purchase within that Instagram application I think is really interesting and then a lot of conversations about the post transaction engagement. You know, send them not one email confirmation that your items are coming but send them two and really to think about lifetime value the customer and engaging the customer via content and oh by the way there'll be some transactions in commerce as well. I think it's really forward looking and really enjoyed that conversation as well. I did too, I didn't know the difference between an influencer and a micro influencer and you kind of infer based on just the name alone but also how brands have the opportunity to leverage data to evaluate maybe we should actually make more investments in somebody with a thousand followers for example and somebody with a hundred thousand because the revenue attribution or the website traffic lift that they're going to get from a micro influencer could far outweigh the benefits financially than going with somebody a celebrity or what not that as you said back to Joe Namath and many decades ago. So that was interesting but it's also a good use of using data to build brand reputation build increased customer lifetime value but also get so much more targeted and really understand how to operationalize the commerce portion of your business and through whom through which channels you're going to see the biggest bank for your book. Yeah it's really interesting times you know this idea that the apps follow you I mean my favorite example is Spotify super sophisticated app right I can be listening to my phone I get into my car it follows me I go into my office it follows me on my computer I go out on my bike it follows me it stays the same state and so for the commerce and the community to be able to follow you around is a really interesting idea and again it was Hillary Mason actually that first came up with the term that you know AI and good recommendations done well or magic and done poorly or creepy I think it's always going to be this interesting fine line again I think the whole concept of you know using old data and how fast you update it and that's kind of the example I've been looking at tents I bought a tent I don't want to see ads for tents anymore right it's time to see an ad for a sleeping bag or a camp stove and these are really happening in real time you know we've heard about Omni channel we've heard about 360 view the customer ad nauseam you've been in this business for a long time but it sounds like it's finally coming together and it's finally where we have the data we have the access to the data the speed of the analytics and just the raw horsepower and modeling that we can now start to apply this real time ML to data in flight to be able to serve up the not creepy but correct recommendations at the right time to the right person it's getting closer and closer to reality it is getting closer and as you were talking about that one of the things that popped into my head is not going from the creepy to the magic that is you think wow it's really leveraging this data and using the power of machine learning and AI a great facilitator or is the bottom foundation order management if you don't have the inventory management you don't have the inventory it's great to have all these capabilities to transact in real time but if you can't fulfill it you're going to sink so Magento with some of their core technology of enabling this really enabling that three not just enabling the 360 degree customer view but being able to fulfill it those are table stakes and game changers for merchants of any size and I think they do have to engage I mean they have to be brands right because a commodity item I can go get anywhere there's got to be a reason to come a lot of conversations not so much here but at the Adobe Summit in terms of the content piece and having an ongoing dialogue and an ongoing content relationship with your client now you can slice and dice and serve that up lots of different ways based on who they are the context but if you don't have that you can't just compete on price you just can't compete on inventory because Amazon is going to win right you can't stock my favorite thing is shirt little pins in here how do you stock those you can't they don't cost any money and you don't sell that many Amazon can so find your niche engage your customers engage your community and then there'll be some transactions that come along with this and I think it's really reinforced it I think it's probably really timely for Magento to be part of Adobe because e-commerce just purely buying itself is going to be tougher and tougher to do unless you've got this deeper relationship with your customers beyond simply transacting something Exactly so I enjoyed hosting as I always do with you Jeff learned a lot today and then excited to hear about what's next for this event now that Adobe is leveraging the power of Magento We heard the announcements Gary's going to make the announcement tomorrow so hang out for the keynote tomorrow to find out more about Imagine 2020 we'll be there 2020 because we'll know everything in 2020 That's right I can't wait I'm waiting for that Jeff, as I said, always a pleasure hosting with you You too Lisa I brought the seer to knuckle it out I like it, I like it This is Jeff for Jeff it's making its appearance on theCUBE We want to thank you for watching for Jeff Brick I'm Lisa Martin you've been watching theCUBE live from Imagine 19 at the win Las Vegas Thanks for watching