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Mambo and Joomla are fully-featured CMS applications, which offer rich feature set, easy customization and are FREE to use. The first release of Joomla was thoroughly based on Mambo and the tools looked quite similar.
Mambo is the older of the two - Joomla is actually a fork of Mambo. Somewhere at the end of 2005 Mambo developers chose to separate from the core Mambo team and founded a new CMS application called Joomla! /djuumla/. Since then, both tools started separate evolution. At the beginning there weren't any major differences between them.
Mambo CMS is a great tool that offers excellent options when it comes to content management. There is also a long list of add-on components and modules, which you may use on it and enhance its capabilities (e.g. forum, shopping cart, gallery, etc).
What about Joomla? Well, Joomla has all the benefits described for Mambo and more. In January 2008 there was a major upgrade of Joomla - the Joomla 1.5 version. The new release was based on a brand new platform, quite different from Mambo. Joomla has wan many awards since and is one of the fastest growing Open Source platforms. It has large supporting community and contributors from all over the world.
At SiteGround* we host thousands of websites based on Mambo or Joomla. Both tools provide great capabilities and are excellent solutions for creating and managing a website. At SiteGround, more customers choose Joomla before Mambo. Developers say Joomla code is clearer and more understandable than Mambo's. That is because Joomla started at a later period, where newer technologies were available.
* SiteGround is the leading Mambo and Joomla host. It hosts more than 10,000 Mambo sites and more than 50,000 Joomla sites on its servers. SiteGround customers receive a FREE installation of Mambo or Joomla, have access to detailed Mambo and Joomla tutorials and free Joomla and Mambo templates.