Magento's Imagine eCommerce Conference 2011 - Yoav Kutner Day 2 Keynote

imagination meets
innovation

Product Overview
Tuesday, February 8, 2011

[BLANK]


During this session, weʼll FOCUS on PRODUCT
Weʼll take a look inside MAGENTO GO
Weʼll share some of the UPGRADES weʼve made to Our deployed products
And weʼll PREVIEW OUR next generation of improvements that we have in the works

<<I think youʼll be excited by the product features and improvements that youʼll see.
And I hope youʼll see some common themes running through this presentation

ecosystem

Community Collaboration

Partnership Transparency


Really, theyʼre the same themes ROY discussed yesterday:
Empowering the ecommerce ecosystem
Leveraging the strength of the community
Expanding functionality so that more merchants can take advantage of Magento
And our continued investment in the Magento platform, so that we can solidify our position at the
core of eCommerce

Professional

Enterprise Go

Community Mobile


Yesterday, ROY spoke about our key product strategies:
Strengthening our enterprise-class offerings
Extending into SaaS with Magento Go,
and bringing Magento Mobile to Android and iPad
<Enhancing functionality across all our offerings>

Youʼll see more of the details today, so that you can start to imagine new possibilities for
tomorrow.

Yoav Kutner
Co-Founder and CTO,
Magento, Inc.


Please welcome the co-founder and CTO of Magento, Yoav Kutner.


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performance


Since we release Magento, our deployed products were adopted by increasingly larger and more
sophisticated merchants, we kept on improving product capabilities both in frontend and backend.

To support the growing needs of our customers, the performance of their online site is crucial in this
competitive environment

We test each of these performance improvements across several conﬁgurations to measure the
impact

In fact, Google and other search engines are also using performance as one of the ranking factors

Full Page Caching


Full Page Caching:
The need
Basic capability – Explain

Evolution of Full Page Caching
• Enterprise 1.7 - Only People Browsing

• Enterprise 1.8 - Non Customers

• Enterprise 1.9 - Including Customers


Enterprise 1.7 - Only People Browsing
Enterprise 1.8 - Non Customers
Enterprise 1.9 - Including Customers

Full Page Caching for CMS (Homepage)

500
Performance, transactions/ sec 460

380
375

Disabled
250 Enabled
200

125 100

48 50 45 46

0
50 100 200 500

Number of Concurrent Connection

Explain The test set up –
Meaning of X and Y Axis
General test set up conﬁguration: webservers

Explain results

Full Page Caching for Non Cacheable URL Scenario

40
40
Performance, transactions/ sec 35

30
25
Disabled
20 19 Enabled
17 17
16

10 9

0
10 20 50 100


More realistic scenario

Sales Module
Optimization


[BLANK]

Sales Module Optimization
2000
1772 1747 1710 1696
Performance, orders / 10 min

1500

1105 1079 1059
1000
769
1.4
1.8
500

0
50 100 200 300



What is the impact?

Sales Module Scalability (Checkout)
1 web 1 database 2 web 1 database 3 web 1 database

80,000
Performance, orders / hour

60,000

40,000

20,000

0
100 100 100
Concurrent Connection, Num

What is the impact?

Sales Archiving

Orders, Invoices,
Sales Data Shipments,
Credit Memos

Sales Grids Sales
Data Archive


[BLANK]

Solr Integration


1.8 Search
1.9
Navigation
Advance search
Suggestions and spell checking
Recommendations

Good for:
large catalogs
processing indexes
scaling

Customer Examples - Zenni Optical / One Pica


Zenni optical deployed with Solution Partner One Pica

Before:
Old version of X-Cart
A plateau in orders and number of unique visitors during 2010

After:
Deployed EE 1.8
Utilize wide range of performance functionality including (partial list):
Full page caching
Database caching
CDN using “original pull” mode
Xcache and Memcache
Fine tuning to Apache and MySQL
Adoption to physical conﬁgurations (networking, memory and CPUs)
Results:

Customer Examples - Zenni Optical / One Pica

Results
• Orders increased by 30%
• 4,000 to 5,000 orders/day
• 40,000 unique visitors/ day


Zenni optical deployed with Solution Partner One Pica

Before:
Old version of X-Cart
A plateau in orders and number of unique visitors during 2010

After:
Deployed EE 1.8
Utilize wide range of performance functionality including (partial list):
Full page caching
Database caching
CDN using “original pull” mode
Xcache and Memcache
Fine tuning to Apache and MySQL
Adoption to physical conﬁgurations (networking, memory and CPUs)
Results:

Harbor Freight: Checkout Scenario
Magento Enterprise 1.6
8.00
Average Transaction Time (sec)

6.809

6.40

4.819
4.80 4.656

4.111

3.467

3.20
2.829
2.639

2.074 2.083 2.033 2.040

1.60

0
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Next example: A large Enterprise customer
With catalog size of over 4500 SKUs
The company was operating on EE1.6 and upgraded to EE1.8

They are operating on 6 Web servers and 4 database servers

Harbor Freight: Checkout Scenario
Magento Enterprise 1.6 & 1.8
8.00
Average Transaction Time (sec)

6.809

6.40

4.819
4.80 4.656

4.111 Enterprise 1.6
3.467
3.169 3.068
Enterprise 1.8
3.20 2.845
2.829
2.639 2.591
2.233 2.133 2.040
2.074 2.083 2.033 1.902
1.53
1.60
1.13
0.83

0.152
0 0
0

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This company experienced signiﬁcant improvements in performance across all areas of the website,
including
Shopping cart
checkout
browsing and search
The results show up to 90% improvement in page response time.
TBD if we can mention Harbor Freight - Tessa


Another important functionality we looked at 2010 was to continue enabling our merchant to achieve
PCI compliancy

In order to handle several payment methods, merchants expect our software to be PA-DSS verified.

Yet, merchants and developer alike demand for flexibility and open source nature within our
platform to continue customizing their site to fit the business needs.

Our goal was to simplify the compliance process for merchants

We achieved this goal with the introduction of the Magento Payment Bridge

Payment Bridge


The Magento Payment Bridge is PA-DSS validated, and provides a simple way for merchants to
become PCI complaint.

Magento Payment Bridge (MPB) & PCI

Payment Gateways

Magento
Installation

Customer Payment Bridge


[BLANK]


Payment Gateways

Magento
Installation

Customer 1 Payment Bridge


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Payment Gateways

Magento
Installation

2



[BLANK]


Payment Gateways

Magento
3 Installation

2



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Payment Gateways

Magento
3 Installation

4

2



[BLANK]


Payment Gateways

Magento
3 Installation
5
4

2



[BLANK]

Features Added in 2010

• Gift registry
• Abandoned shopping cart reminder emails
• Wishlist reminder emails
• Dynamic generation of promotions
• Assisted shopping
• Customer and address attribute management


Before diving to features:
Goals for 2010 Magento Platform Features

• Improving conversion rates
• Increasing the average order amount
• Enhancing the user experience

Elaborate in 1 sentence on each item

For Dynamic generation of promotion:
We provide auto generation of coupons based on shopping cart price rule templates. Allowing
marketing personal to be more ﬂexible with their promotion

New Releases

Magento Community 1.5
‰

Magento Professional 1.10
‰

Magento Enterprise 1.10
‰


Yesterday Roy announced several new releases to the Magento Platform

These releases include additional features geared towards performance, conversion and user
experience

New Release Features

• Enhanced Import/Export Functionality
• Gift wrapping (EE only)
• CDN/DB as alternative image storage
• Major enhancement to Call Center Functionality
• Enhanced payment functionality
• Enhanced wishlist functionality
• Improved shopping cart experience
• Enhancements to assisted shopping for customers


Import Functionality:
On previous versions a 400 product import was imported at a rate of 1-2 products/second
Our new versions can import that same file at a rate of 40 products/second
for simple products, the rate is as high as 70 products/second

We improved the import file structure, so that all importing can be done with a single file

Our enhanced import functionality now supports the following:
All product types, including simple products, virtual, grouped, configurable products as well as gift
cards
All attribute types
different values per scope
custom options
tier pricing
and more.


[DEMO]

2011 Magento Platform Preview

• Continue performance enhancements
• Support for MSSQL and Oracle
• Integration with Business Intelligence (BI) tools
• Enhanced Reporting capabilities
• Return and Exchange Management
• Frontend and Backend UI Enhancements
• Magento Payment Bridge Enhancements


Integration with Business Intelligence (BI) tools & enhanced reporting capabilities:
Merchants will be able to build custom reports using data in Magento and integrate with 3rd party
business intelligence (BI) tools
This will help merchants better understand customer behavior and improve conversion

Return and Exchange Management:
Enabling the creation and tracking of return requests
Administration – tracking, association, status and resolution

Magento Payment Bridge Enhancements:
Supporting more payment gateways
Support for native subscription and recurring billing

Summary of this part:
To summarize our ongoing core product development, we are focused on providing
ongoing innovation across our portfolio

• Support

• Magento Expert Consulting Group

• Education and Training


So, we have high performance, robust open source products with unmatched ﬂexibility -

what else do we need to maintain a vibrant eco system to make merchants and developer successful?

support

Expert consulting.

Training and Education

Worldwide 24/7 Support


We made signiﬁcant investments in the Magento support team in 2010

We increased our coverage throughout the world

Support


We instilled technical capabilities with our team and created methods and practices for managing
issues and improving escalation paths.

These investment have shown great results, including:
Improvement in case management

Reduced average time for resolution

Reduced number of tickets

and greater satisfaction from our customers and partners.

Since August 2010 we have made the following improvements in Support:

Decreased the average length of time to resolve a support case by 40%

Magento Expert Consulting Group


We are introducing the Magento Expert Consulting Group

This group is focused in providing a wide range of packaged services to customers and partners

These services are structured to address
architectural decisions
integration issues
technical consulting
custom module design
code review and performance analysis
as well as data migration.

We know that large Enterprise clients require highly personalized engagement to help with migrating
to the Magento platform
So we created the build and deploy intensive program with Agile project management

oDesk - Magento Jobs By Month Posted

800

600

400

200

0
10/2 10/3 10/4 10/5 10/6 10/7 10/8 10/9 10/10 10/11 10/12


As many of you know ﬁrst-hand, the demand for Magento developers is growing with no end in sight

As our partners reﬂected yesterday, this graph provides a similar picture for the growing demand


To keep up with demand, we have created Magento training courses for developers.

The ﬁrst developer course will be administered this month in Los Angeles

This will be followed by a course in Brussels next month.

Moving forward, we will be delivering a course every month alternating between Europe and the US.

Make sure you sign up early, since these courses are ﬁlling up

We plan to launch a variety of courses for a wide range of skills later this year.

In addition, we continue to invest in making documentation available to ensure that our customers
and partners can effectively leverage the full range of capabilities within the Magento solutions

Check our website


The Magento community is growing.

A wide range of members with diverse technical backgrounds have joined the community
And weʼre seeing more resolutions to problems addressed in the forums
Many community members have signed the Magento Contributor Agreement.
We will continue to invest in collaboration platform
We will facilitate the interaction for improving the technologies and promoting innovation between the
community, Magento all its stakeholders
Say, Thank You to the Entire Community

COMMUNITY


The Magento community is growing.

A wide range of members with diverse technical backgrounds have joined the community
And weʼre seeing more resolutions to problems addressed in the forums
Many community members have signed the Magento Contributor Agreement.
We will continue to invest in collaboration platform
We will facilitate the interaction for improving the technologies and promoting innovation between the
community, Magento all its stakeholders
Say, Thank You to the Entire Community


Special Thank you to:
Moderators and many community leaders in their local regions who stood out in their efforts to make a
true collaborative one:

Rico Neitzel
Thomas Fleck
Guido Jansen
Gabriel Bouhatous
Sherrie Rohde
Brent W. Peterson

Thank You



Rico Neitzel
Thomas Fleck
Guido Jansen
Gabriel Bouhatous
Sherrie Rohde
Brent W. Peterson

Thank You
Rico Neitzel
Thomas Fleck
Guido Jansen
Gabriel Bouhatous
Sherrie Rohde
Brent W. Peterson



Rico Neitzel
Thomas Fleck
Guido Jansen
Gabriel Bouhatous
Sherrie Rohde
Brent W. Peterson


Magento Mobile

Baruch Toledano
Director of Product Marketing,
Magento, Inc.


[BLANK]


I think we all agree that Mobile Commerce is really still in its infancy. The real growth in Mobile
Commerce is still ahead.

Magento Mobile is a compelling offering that helps merchants easily participate in this fast-growing
channel.

Iʼd like to start by sharing some of the key features, which can be grouped around 3 main beneﬁts:
simplicity, resource-efﬁciency, and affordability.

Simple

• Intuitive navigation
• Consolidated management

• Application submission handled by Magento


• Magento Mobile is simple to deploy and manage

• We provide intuitive navigation, making it easy for consumers to browse product catalogs and

menus
• we simplify store management, by enabling merchants to consolidate mobile and online storesin the

same admin dashboard
• And Magento takes the pain out of deploying your app in the app store by handling the application

and submission process

Resource-Efficient

• Caching scheme
• Functionality optimized for device/OS

• Image resizing per device resolution


Your mobile application needs to operate in a resource-constrained environment. So we designed
Magento Mobile to be highly resource-efﬁcient.
– Extensive caching scheme design for mobile
functionality of the application is optimized for the mobile device and operating system
– Image resizing handled according to device resolution

Affordable

• Accessible price point
• Support for mobile web and native application

• Seamless integration and administration


• Magento Mobile gives merchants an affordable way to tap into mobile commerce.

• our price point is accessible for a wide range of merchants

• we provide a mobile web and native application - so merchants are positioned to take advantage of

mobile growth via either channel
• and we offer seamless integration and administration, allowing them to focus their time and

resources on merchandising


As you know, we are adding android and ipad, so we now support all major mobile and tablet
platforms.
[INTRO DEMO]

2011 Road Map

• Consumer-oriented functionality
• Additional enterprise-level features
• Developer-focused functionality


• In 2011, weʼll continue to build on our key beneﬁts while extending our reach and adding new

features
• weʼll be adding consumer oriented functionality, such as support for additional languages, marketing

capabilities and enhancements to user experience
• weʼll introduce features from the Enterprise Edition...

• and weʼll also add developer focused functionality. This includes integration with 3rd party

technologies tailored to mobile, such as push notiﬁcation services and mobile analystics. Another
addition will be the ability to embed a storefront in another application (example)
• I think 2011 will be a very exciting year for Magento Mobile! Thank you


[YOAV ENTERS]

Thank you, Baruch.

Yesterday, we announced and launched Magento Go.

Imagine a solution that provides small and emerging merchants with a simple, affordable way to
launch their stores.

Imagine a solution that lets these merchants launch a PCI compliant store in minutes.

Now imagine all this simplicity and convenience combined with the flexibility of Magento.

We believe Magento Go will transform the eCommerce market -- and right now, you’ll see why we are
so excited about this product.

To demonstrate some of Magento Go’s simplicity and flexibility, here is our Vice President of Product,
Doug McCiver.

Doug McIver
Vice President of Product Management
Magento, Inc.


[INTRO]


Slowly!

Yesterday – Club

Yesterday, Roy talked about opening up the ecommerce club, getting rid of the barriers to getting in.
Today, I want to give you a closer look at Magento Go, which is intended to push that vision even
further.

SaaS – More merchants in Magento Community – otherwise elsewhere

Magento Go, our new SaaS offering, is intended to simplify the process of getting into the club, letting
even more merchants join the Magento Community - Merchants who might have chosen to go
somewhere else before.

Key Vision – Easier – rich functionality / ﬂexibility

Small and
Powerful
SaaS emerging
& flexible
merchants


Slowly!

Yesterday – Club

Yesterday, Roy talked about opening up the ecommerce club, getting rid of the barriers to getting in.
Today, I want to give you a closer look at Magento Go, which is intended to push that vision even
further.

SaaS – More merchants in Magento Community – otherwise elsewhere

Magento Go, our new SaaS offering, is intended to simplify the process of getting into the club, letting
even more merchants join the Magento Community - Merchants who might have chosen to go
somewhere else before.

Key Vision – Easier – rich functionality / ﬂexibility

Turn-key, Self Service


Turn key – self service

To provide that simplicity, we are providing a turn-key solution. Signing up is self-service. Changing
plans is automated. The merchant can quickly get or mange their account simply by going to the
Magento website.

Magento Go is Simple

• Secure PCI-certified, hosted solution
• Optimized environment for growth
• Performance tuned
• Content delivery network


Hosting, Maintenance, CDN,

All of the hosting, tuning, and maintenance is handled for the merchant.

From the database tuning through to the Content Delivery Network, the performance of the solution is
managed for our Go customers.

Merchandising Freedom

• Feature Rich
• Powerful
• Product Types
• Custom Attributes
• Price Rule
• Promotions


Full functionality

At the same time that we have tried to simplify the process for new merchants, we are still providing
the full functionality of Magento.

Simple product

merchandising freedom with product types
Bundles, groups, custom product attributes
Pricing by customer group

While merchants can start with simple products and custom attributes, they also have the ability to
work work the full range of product types Magento offers. Product types that provide the
merchandising freedom they need to advance their businesses. They can create custom attributes
on the ﬂy. They can group their products into bundles or groups to provide their customers the

Merchandising Freedom

• Feature Rich and Powerful
• Product Types
• Product attributes customization
• Promotions and pricing rules
• Business operation


• Product attributes customization

• Promotions and pricing rules

• Business operation:

• Order processing

• Setting tax rules

• Customer service management

• Merchandizing and promotion


[YOAV ENTERS]

During yesterday morningʼs keynote, you heard about some of the frustrations that merchants and
developers experienced before Magento.
When we started working on Magento, we knew that it couldnʼt be a “one size fits all” product. Our
goal was to create something that developers could easily build on and customize, so that merchants
could get the functionality they needed. And thatʼs been one of the keys to this platformʼs success.
So when we were developing Magento Go, there was no way we were going to create a “one size fits
all” Solution. We had to create a way to bring our developer community into the picture, so that
merchants could find the solutions they need.
Thatʼs what the Magento Go Platform is about.
Here to share some details is our Senior Technical Product Manager, Jonathan Berry.

Jonathan Beri
Senior Technical Product Manager,
Magento, Inc.


[INTRODUCE JONATHAN]


Thank you Yoav. Weʼre very excited about the Magento go platform, and we know you will be too.
Merchants will love Magento Go for its simplicity & flexibility. Developers will love the innovation &
opportunity that this new platform provides.

Before I discuss specifics, let me explain where Magento go platform fits in to the Magento
Ecosystem.


[ANIMATION]

Today there are all these applications out there that merchants need to run their business.
Applications like quickbooks, salesforce and constant contact. [click] to start animation

But currently, thereʼs no easy way for merchants to access and integrate these applications in their
online stores. It requires either a high level of technical expertise, or external custom development.
[click]

The Magento Go Platform eliminates this complexity, bringing merchants and developers together,
and making it easy for merchants to acquire and integrate the applications they need.

All about apps

• Hosted in a secure environment
• Rich API for endless functionality
• In store, admin or working with other services
• Works on Magento Go & across all our other editions


Apps, apps, apps – itʼs all about apps. Apps on the Magento Go Platform are fully-hosted features that
live on our secure environment. These apps can create powerful functionality through a rich set of
apis. They interface with your customers, your backend and even with other systems. And whatʼs
truly innovative about it is that Magento Go Apps work on Magento Go, Community, Professional &
Enterprise Editions.

Key benefits: Merchants

• Simple-to-add apps via drag and drop
• Rich functionality from different applications together
• Simple, painless upgrades


So why will merchants love it? Because you can add apps through the drag-and-drop interface Doug
demoʼd earlier. With a few clicks, you can add a live chat support app on the checkout page or an
interactive dashboard in your admin or even sync your sales with quickbooks online. And since itʼs on
our servers, you get immediate updates to the app without any upgrade headaches.

Key benefits: Developers

• Quickly add new functionality using JavaScript apps
• Open standards
• Powerful REST APIs
• Build, test and deploy


So why will developers love it? You can rapidly build interactive features in simple JavaScript. Built on
Open Standards, the JavaScript API exposes all of Magentoʼs data to your app. Also, our powerful
REST api allows you to integrate with other SaaS products written in any language. With all this, we
provide the tools to build, test & deploy your apps on the Magento Go Platform.
We think the Magento Go Platform is a win-win-win: a win for Magento, a win for developers and a
win for merchants.

Jon Jessup
CEO,
Cloud Conversions


[INTRODUCE JON]

Q&A with Jon:

•Tell us about your background.
•What can you tell us about your experience with the Magento Go platform?
•Why are you excited?
•What do you think this is exciting for developers?

consumer

merchant merchant
website call center
(Magento) (Salesforce)

merchant
warehouse
(Magento)


[INTRO TO DEMO]
Title: RMA App Example
Weʼre going to do a demonstration of...
Let me give you an overview of...

::insert Erinʼs slide::


[DEMO]

Jon: Call center
Yoav: Consumer
Jonathan: Warehouse

App Store

Fully Transactional


I think you can tell by now that we are very excited about the Magento Go Platform

It is a major addition to the Magento ecosystem, and we are committed to the growth and success of
this great innovation.

Later this year we will introduce the marketplace that Roy referred to yesterday.

The marketplace is where developers will publish and sell their applications

Applications will be rated and reviewed, categorized and promoted.

The marketplace will make it easy for merchants and developers to ﬁnd the best applications to meet
the needs of their business.

Itʼs where merchants will expand the horizons of their online stores…
And where developers will monetize their talent and creativity


So what do you think: do we have some opportunities for growth with Magento in 2011?


[INTRODUCE BOB]

Magento's Imagine eCommerce Conference 2011 - Yoav Kutner Day 2 Keynote

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