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Exactly, it was a massive success. I never used Heroku but it was an great concept and a huge achievement. After an acquisition products normally fail as large
by grey-area 4y ago
Exactly, it was a massive success. I never used Heroku but it was an great concept and a huge achievement.
After an acquisition products normally fail as large
companies are too sclerotic to adopt or even value new ways of working, so they just destroy what they don’t understand, often after paying a huge premium for it.
- simonebrunozzi 4y agoNot a "massive" success. At the time of the acquisition, its revenues were a few MM$. The acquisition price was high compared to what was happening at the time. And then, Salesforce didn't really know what to do with it, and growth slowed down and good leadership left.
- ehnto 4y agoYou are talking about money when their point is that it was a huge success as a product and it influenced a sea change in development practices. I would only ask if their revenue was enough to keep the lights on, if it id then people are getting employed and the community gets a valuable service. Wicked.
- tedmiston 4y agoCurrent revenue is not the right to focus on for an early stage acquisition. They collectively raised $13M through the Series B in May 2010 and were acquired for $212M cash in December 2010 (technically ~$250M for the whole deal). A ~16–19x return, especially that early, is pretty excellent. That speaks to the product itself and its future growth potential and place in the market more than current revenue.
- tedmiston 4y ago*that should say not the right metric to focus on...