What could Intershop's position be in the 2023 Magic Quadrant?
- Atul Jain | 02-10-2023
Please accept my congratulations to all Independent Software Vendors (ISVs) who have earned a place in the recently published Gartner Magic Quadrant for Digital Commerce. A special mention goes out to our valued partners for their well-deserved recognition in this field, naming BigCommerce as Challenger and Salesforce as Leader.
Gartner’s assessment in this report covers a wide range of vendors; more than 150 vendors are tracked within the digital commerce market. Only eighteen vendors met the strict eligibility criteria for the Magic Quadrant. However, it is important to emphasize that a vendor’s absence from this list does not necessarily indicate a lack of viability or quality of their products.
In Intershop’s case, Gartner awarded an honorable mention because it met several but not all of the eligibility criteria. Unfortunately, it did not meet the required combination of year-over-year revenue growth, due in part to its ongoing transition from licensing and support revenue to subscription revenue for its digital commerce platform.
Here’s what Gartner wrote about Intershop in their 2023 report:
“The Intershop Commerce Platform is available as a single-tenant hosted solution or as a multitenant SaaS offering. It offers both B2C and B2B functionality, but has recently been focused primarily on larger B2B customers and organizations looking to combine both models. It is primarily used by larger customers in Europe who need a flexible platform with many pre-built integrations within the ecosystem of digital commerce applications. Intershop also offers an Angular-based PWA for companies that require a modern, decoupled storefront, enabling faster project implementations.”
According to the view of Neortus’ commerce expert, if Intershop had met all the eligibility criteria, it would have been ranked in the 2023 Magic Quadrant Digital Commerce as “Niche Player” are recognized.
Here is our detailed analysis of Intershop:
Intershop’s digital commerce platform is available as a single-tenant or multitenant SaaS solution and primarily serves customers in Europe from various sectors, including retail, manufacturing and wholesale. A significant proportion of customers process transactions of more than $50 million in GMV through the platform. Organizations should consider Intershop when they need a highly customizable B2B platform that can scale at high traffic and transaction volumes.
Strengths of Intershop include:
Robust B2B capabilities with a wide range of complex functionalities readily available.
Recent acquisition of Sparque, which enhances personalized experiences, search features and recommendations, with seamless integration.
Angular-based PWA accelerator kit for rapid development of storefronts.
However, there are also areas of concern:
Intershop’s architecture lacks modularity; there is a common data layer across all modules, preventing independent deployment of functionalities.
The majority of Intershops revenue comes from customers in the EMEA region, with a limited customer base in North America and APAC, which can present challenges when integrating outside EMEA.
Intershop’s rate of innovation is relatively slow, and the platform lacks the ability to foster an ecosystem for co-creation and innovation. There is no partner ecosystem or app marketplace where innovative plugins or apps that respond to the rapidly changing marketplace are available.
What’s your take on Intershop? Leave a comment and share this article if you found it interesting.
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