How Much Does Magento 2 Cost?

Magento 2 is a platform that can help you set up your e-commerce store. However, before making the decision about which platform to use, it is essential that you are aware of the prices of both, Magento 2 Community Edition and Magento Enterprise edition. The Enterprise Magento pricing is different from the other editions of Magento and can have an overall impact on the total costs that you will have to incur.  Enterprise Magento pricing can range from 22,000 dollars to 125,000 dollars per year. This may be different if you have some kind of discount available.

Magento 2 also offers a cloud hosting service referred to as the Enterprise Cloud Edition which combines licensing and AWS based managed to host. This can cost you something between 40,000 dollars to 190,000 dollars which is based largely on the gross sales revenue per year.

Magento 2 Community Edition

Magento temporarily offered the Community edition for free when it was introduced towards the end of 2015. The Community Edition of the Magento 2 has most, but not all of the features that are offered in the Magento Enterprise Edition. Some of the major features that are missing in the Community Edition, such as those related to security, promotions, merchandising, scalability, customer support, and loyalty.

Magento 2 Enterprise Edition

For merchants who generate less than 1 million dollars per year, a Magento 2 Enterprise Edition license starts from 22,000 dollars. The pricing will then increase in tiers on the basis of the revenue generated.

Simply put, the more money a merchant makes, the more the license will cost because higher revenue will place you on a higher tier, increasing the license cost you will have to pay. Quite a lot of other platforms, such as Shopify Plus and Salesforce Commerce Cloud, there are no revenue tiers, these platforms calculate license fees as a direct percentage of the gross revenue of the merchant, and so the fee increases as there is an increase of a dollar in the gross revenue.

The Enterprise Edition of Magento previously had a pricing model that was per-server. That was suitable when companies used traditional environments for hosting, for example, collocated, on-premises, etc. In recent years, however, companies have increasingly started to use cloud-based hosting, on hosts like AWS for example.

The per-service model became redundant because the flexibility relating to the number of servers that are online in cloud-hosting. Adopting a model that is based on tiers of revenue was, therefore, a more practical option.

However, for Magento clients, this will significantly change the costs they have to incur. For businesses whose revenue is less than 5 million, the Community Edition is a better option whereas the Enterprise Magento pricing makes it more suitable for businesses generating revenue of 5-25 million.

Magento 2 Enterprise Cloud Edition Pricing

The Enterprise Cloud Edition of Magento 2 offers a better version of Magento 2, and it combines, in a single fee structure, the hosting and Enterprise license fee as well. Customers who have just joined the Cloud Edition are given an offer in which they can make monthly payments to distribute the annual costs they will have to incur for the system over the course of twelve months (one year).

For merchants who make less than 1 million dollars, the pricing for this Edition starts from 40,000 dollars. From an overall analysis of the system, it can easily be deduced that the Magento 2 Enterprise Cloud Edition is the best option as it retains the better features of Magento 2, but makes it more suitable for the merchants.

Magento also offers certain additional services for the cost of a license of the Magento Enterprise Edition and an AWS cloud setup that has a reasonable size:

  • New Relic APM Pro infrastructure instrumentation
  • Fastly for CDN and DDOS protection
  • Blackfire.io PHP application for performance visibility and tuning

These are all the features that many mid-sized merchants who use Magento services are paying for, and as this Edition combines all of them, it does look attractive. However, as Magento does not give separate costs for the hosting infrastructure and the licensing fee, we can’t compare them both.

Magento 2 varies significantly if you use different routes, and even though Magento still does offer some free services, they are limited. Merchants who generate higher revenues will probably like to opt for the Enterprise editions because also though they are paid services, they offer a full range of features as well.

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