Developer-focused Heroku wins big with SalesForce Acquisition

By Posted in New Relic News 9 December 2010

Congratulations to our partner Heroku for building significant enterprise value so rapidly, but also to Marc Benioff and Salesforce for making a smart strategic move in grabbing a truly innovative PaaS offering.  We have partnered closely with Heroku for a long time, and are pleased that our app monitoring and management service (New Relic RPM) continues to be a popular add-on for Heroku apps.  We’re also excited about what this could mean for our joint customers and the Ruby community at large.

I’ve been watching the tech press as they grapple with this news over the last 24 hours and on the backend we see many now questioning why Salesforce would pay $250MM for Heroku (after retention bonus and option buyout)? To me, the answer is pretty clear:  It was their 100,000 customer-generated apps combined with a frictionless, automated, familiar way that changed developers lives for the better.  Throw in a developer-friendly and powerful Add-on marketplace with critical tools and this vibrant developer community that Heroku has built is a template for the future of IT.

The most exciting part of this news is that companies the stature of Salesforce are now acknowledging what companies like Heroku and New Relic have witnessed for a long time: Modern web apps are being built in an entirely new way, and need the supporting systems and vendors to work in a new, simpler way. Cloud is an obvious part of the picture, but it goes beyond providing infrastructure on demand.  By focusing on developer productivity, time to market, and simplicity, you are creating extreme value. Heroku is exceptionally good at these things, and developers took note.  New Relic shares this same passion to simplify the job for the newly re-emerging developer who increasingly has responsibility for the app’s success in production.  For many Heroku customers, the integrated monitoring and troubleshooting we provide seems to be part of the magic – the “it just works as I’d expect” experience they have learned to expect and value.

We look forward to building upon the success of our Heroku partnership as the they continue to grow as a part of Salesforce.com.  We are also excited for what this means for our other platform partners (find them here!) that are proudly and diligently supporting this tsunami of innovation happening at the hands of developers across the globe.  These are the companies that are changing how applications get built.  I suspect (and hope) that Salesforce.com will give Heroku the reins to not only execute on its always-ambitious roadmap, while also continuing to serve the growing developer base.

As Steve Ballmer awkwardly proclaimed so many years ago, Its all about the developers, developers, developers!

About the author

cirne@newrelic.com'Founder and CEO, New Relic

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