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

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121–130 of 205 posts

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

#121
post #4

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

Partially the time, resources, and cash that Salesforce would need to spend to create a similar product.

Also: revenue, future growth, and intangibles (brand, goodwill, etc.)

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

#122
post #102

Earlier quoted context omitted.

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?

Partly because of the changing pace of technology. A watch company could be pretty sure 100 years ago that watches would still be around in 20 years, sure the technology might need to be updated but not dramatically. You think anyone will even use Heroku in 5 years? There is a new language and technology every month now that gets hype, it's unlikely something like this will continue to grow for the long term.

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

#123
post #114

Earlier quoted context omitted.

Since people seem to dislike my comment, I will explain my point. "A home run" means "ultimate success", you can not expect to do any better than that. Since pg has openly stated that he is looking for the next Google/Facebook type company, 212 million is not "a home run". Its still pretty good!

I think the phrase you are looking for is "grand slam."

That wouldn't be the first time I mix up my metaphors, thanks for the correction!

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

#124

Earlier quoted context omitted.

Gotta agree with this assessment. I've found deployment to Heroku whilst tinkering with side projects fantastic, whilst Salesforce is the bane of my life in the day job. And whilst they have the in-house infrastructure to actually reduce Heroku prices, the Salesforce focus on the enterprise market hints that they're more likely to raise them. Congratulations to the Heroku team though. Is it DropBox's turn next?

>Congratulations to the Heroku team though. Is it DropBox's turn next? Shut up before you jinx us all.

Jinx us? What could be better? You get to build a product with a clear roadmap, a vast market of disgruntled users of the product that went to shit and basically guaranteed success.

I wonder if I should start building Heroku 2 now...

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

#125
post #102

Earlier quoted context omitted.

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?

They offer founders too much money to pass up.

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

#126

I've honestly never understood why startups want to be acquired (besides the monetary gain for individual employees). Doesn't acquisition often destroy or dilute the very successes they've worked so hard to build? (I worked for an acquisitive company that worsened nearly every product/company it acquired.) Why not just focus on making your business better? Heroku will now be subject to all kinds of pressures and asin…

Why would you want to work on the same thing forever? Sure if you found a Google or a Facebook then you may have an ample playground, but most small companies do not have opportunities that interesting. You can try to force a round peg into a square hole or just take your cash and start something new.

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

#127
post #33

This is great news for Heroku and YC (congratulations folks!). That said, does anyone have any insights on why exactly SalesForce would buy Heroku? What is the business rationale? "This is Salesforce’s fifth acquisition this year. Earlier purchases include Activa Live, Sitemasher and Jigsaw. Salesforce.com also spent $170 million to fully acquire its Japanese subsidiary, Salesforce Japan." Anyone see a pattern? I don…

One can make a pretty good case that Heroku and the like is where all web development is headed pretty soon. One thing that can be gleaned from the history of languages and computing platforms is that once computing performance started skyrocketing, it has been the easiest languages and platforms that have been winning. And RoR is very easy and Heroku is a very easy way to deploy and host RoR. If Heroku becomes the p…

Whilst Amazon cloud, Heroku etc may be hot for startups who don't really mind about throwing money away, I don't think that will last. Both are significantly, prohibitively expensive for companies interested in turning a profit or having a business model.

It's more like "VC funded companies throw money at hosting at the moment".

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

#130
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.

Another Heroku-like service for Python is DjangoZoom. Sign up for the beta at http://www.djangozoom.com

Disclaimer: I'm a co-founder of DjangoZoom.

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