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Salesforce Buys Heroku (YC W08) For $212 Million In Cash

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101–110 of 205 posts

Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash

#101

I really hate it when people to give arbitrary numbers to things like 'Cloud 2'. It's still just cloud computing. 'Cloud 2' doesn't actually -mean- anything. It's not a standard. It's not like you can say something is or isn't Cloud 2 by any objective means. It's marketing speak, and who exactly is he marketing it to? All developers see right through it and know it doesn't mean anything. All clients only care that th…

whois cloud2.com -> DNS01.SALESFORCE.COM :)

Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash

#102

This sounds like stellar news for Heroku employees and investors. I'm not sure how it's going to be good for Heroku customers (like me) in the long-term. There will be the inevitable brain drain over the course of 1-2years when key staff move away as their contract clauses run out and then we'll be left with Heroku being run by SalesForce :(

Nothing last forever.

Eventually all the "startups that you love" will either close their door or be acquired and I think people should expect that since day 1.

Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash

#103
post #68

I can see EngineYard opening a bottle to celebrate as well, $212M in 'mostly stock' would be landing a big one, to be landing it in cash is very good indeed. Congratulations to everybody, especially to the people that brokered the deal on Herokus side, very impressive. In other news, registrars the world over report a large uptick in domain registrations around the twin themes of rails hosting and sushi...

You're saying this establishes the high value of EngineYard, since it is similar to Heroku?

Similarity should establish the P/E ratio.

Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash

#104
post #75
post #43

Earlier quoted context omitted.

"Salesforce has been pushing heavily into the cloud to compete with AWS and Azure" Just five years too late. They should have built AWS way before anybody else (esp Amazon) did. They were sitting on the opportunity for so long, had a customer base that was already sold on the cloud. They are now playing catch-up, with acquisitions and the release of Database.com etc. Huge opportunity missed, the company could have be…

I thought Salesforce's strategy was more to use force.com developers to build apps that add value back to the core Salesforce product. Trying to compete with AWS as a cloud for the masses is kinda pointless in terms of making any profit for your company, isn't it?

That was the second phase of their strategy, and then they went out into the platform-as-a-service. There is a lot to be made in selling the picks and shovels to developers, and for Salesforce this would have been easy since developers already had faith in them, and hosting with Salesforce would put your app closer/in the same environment as the platform you are building on.

Salesforce take a small cut of app sales, they could have made a lot more hosting all of these apps and providing the remainder of the dev toolchain/platform.

It also meant that they could have captured part of the market for intranet apps. The app might not be related to salesforce at all, other than using it for auth, but salesforce could have hosted the app and charged crazy enterprise rates (ie. not cents per hour like EC2, more database.com type rates).

On a semi-related note, I think Facebook will eventually get into this. Bret Taylor who is the CTO now was on the AppEngine team. I wouldn't be surprised if Facebook do PHP and Python app hosting soon.

Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash

#105
post #4

How did they come up with 212 million valuation? Genuinely interested to know.

You and lots of other people.

I doubt it was based on Heroku profits so there must be some other major factor, especially given that this is a cash deal.

It will be very interesting to see how they are going to make all that money back, it's not exactly pocket change.

Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash

#106
post #102

This sounds like stellar news for Heroku employees and investors. I'm not sure how it's going to be good for Heroku customers (like me) in the long-term. There will be the inevitable brain drain over the course of 1-2years when key staff move away as their contract clauses run out and then we'll be left with Heroku being run by SalesForce :(

Nothing last forever. Eventually all the "startups that you love" will either close their door or be acquired and I think people should expect that since day 1.

Why are these the only 2 outcomes? Why not grow a business?

Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash

#107

This sounds like stellar news for Heroku employees and investors. I'm not sure how it's going to be good for Heroku customers (like me) in the long-term. There will be the inevitable brain drain over the course of 1-2years when key staff move away as their contract clauses run out and then we'll be left with Heroku being run by SalesForce :(

Time to start keeping an eye on other hosting solutions. I'm love Heroku and I host a decent number of paying applications on it, but I'm afraid that when the original people will start leaving we'll be left with just another big corporation.

if you're a fan of python, keep your eye on djangy. those guys are sharp.

Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash

#108
post #68

Earlier quoted context omitted.

You're saying this establishes the high value of EngineYard, since it is similar to Heroku?

Similarity should establish the P/E ratio.

Not necessarily. The businesses have been on very different trajectories.

Re: Salesforce Buys Heroku (YC W08) For $212 Million In Cash

#109
post #107

Earlier quoted context omitted.

Time to start keeping an eye on other hosting solutions. I'm love Heroku and I host a decent number of paying applications on it, but I'm afraid that when the original people will start leaving we'll be left with just another big corporation.

if you're a fan of python, keep your eye on djangy. those guys are sharp.

Are these guys on HN, and if so, who are they?
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