eBay has acquired Magento, a company that makes a PHP-based online shopping cart, and announced the creation of X.Commerce, and open source platform group that Magento will be merged into. The intent is for eBay to provide a cloud-based retail service that will help merchants create online stores that are more customizable and offer many more options than the current “stores” within eBay. The company is also creating an online app store where developers are invited to submit apps for merchants to use.
“There isn’t one place, one stop solution that has one integration,” Matthew Mengerink told The Register. “We are going to fill out the operating system so every aspect of commerce is available from the store front or the API suite in a consistent fashion that makes it easier for the developers to extend.” Mengerink was head of PayPal engineering and now heads up X.Commerce. The new service is expected to launch October 12 and 13 at the X.Commerce Innovate conference.
Some observers believe the new service is intended to compete with Salesforce.com. Either way, small companies will have a whole new option for offering their wares online. We think that’s a good thing.