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QUICK LINKS Announces Acquisition of Heroku


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January 04, 2011 Announces Acquisition of Heroku

By Anshu Shrivastava, TMCnet Contributor

Enterprise cloud computing recently entered into a definitive agreement to acquire Heroku, a cloud application platform for writing Ruby-based applications, for approximately $212 million in cash, net of cash acquired.

Marc Benioff (News - Alert), chairman and CEO at, said that Ruby is the language of Cloud 2, and Heroku is the leading Ruby application platform-as-a-service for Cloud 2 that is fueling this growing community.

“We think this acquisition will uniquely position as the cornerstone for the next generation of app developers,” Benioff said.

Heroku is a Ruby platform-as-a-service, built from the ground up to work in an open environment and take advantage of the Ruby language. Ruby is a development language used to write next-generation apps that are social, collaborative and deliver real-time access to information across mobile devices.

The demand for Cloud 2 apps is increasing, and thus new platforms and new languages are required to provide developers with the best experience possible. (News - Alert) said that it recognizes that the leading language for building Cloud 2 apps is Ruby, and the leading cloud platform for Ruby is Heroku.

The company expects that the acquisition of Heroku will help it to accelerate the shift to the next era of cloud computing, within the enterprise and across the entire industry.

Thanks to this acquisition, is expected to gain the leading application platform-as-a-service for developers working in Ruby. Company officials said that not only gains a talented team and access to the expanding community of Ruby developers, but also gets technology and intellectual property assets that don’t exist anywhere else.

Together with VMforce, the enterprise Java cloud, Heroku will enable the company to become a prominent platform provider for nearly any kind of Cloud 2 application, said company officials.

Company officials said that Heroku was built with the same multi-tenant philosophy that is the hallmark of’s platform. has the trust and credibility the most demanding customers expect, said Byron Sebastian, CEO at Heroku, adding that together, “we will provide the best place to run and deploy Cloud 2 apps. We believe this is the winning combination to bring cloud application platforms into the mainstream of the enterprise.” anticipates that the acquisition will help it attract and serve a critical mass of developers, customers and ISVs wanting an open, scalable and trusted Cloud 2 platform.

The transaction is expected to be completed in’s fiscal fourth quarter ending Jan. 31, 2011, subject to customary closing conditions.

Earlier last year in November, Hewlett Packard drafted an extensive deal with to replace Oracle (News - Alert) Siebel as its customer relationship manager of choice.

Anshu Shrivastava is a contributing editor for TMCnet. To read more of Anshu’s articles, please visit her columnist page.

Edited by Juliana Kenny

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