acquires Ruby platform vendor

On demand CRM software vendor is to acquire application platform start-up Heroku for $212 million.

US-based Heroku sells a platform-as-a-service offering that allows independent software vendors to develop and host applications based on the Ruby programming language in Amazon’s EC2 cloud.

Heroku currently hosts approximately 106,000 applications on its platform, including a number of mobile apps. Its customers include US consumer electronics giant BestBuy.

The company currently employs between 25 and 30 staff at its headquarters in San Francisco, meaning the deal values each Heroku employee at between $7 million and $8.5 million.

During a speech at the company’s annual Dreamforce customer event in the city, CEO Marc Benioff said the acquisition of Heroku "was going to give Ruby developers a path into the enterprise".

The Ruby programming language, and its associated framework Ruby on Rails, have attracted a number of high profile users, including microblogging application Twitter and local deal website Groupon.

Earlier this year, Heroku experienced first hand some of the perils associated with external IT infrastructure services. On 2 January, some of its virtual machines hosted on Amazon failed, temporarily knocking about 44,000 of its customers’ applications offline.

Peter Done

Peter Done is managing director of Peninsula Business Services, the personnel and employment law consultancy he set up having already built a successful betting shop business.

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