15 Comments

Summary:

VMware is continuing its acquisition spree as it looks to raise its profile in the platform-as-a-service market, and sources tell me its latest target is EngineYard, the Ruby on Rails platform that’s raised $37 million from the likes of Amazon and Benchmark.

UPDATED: VMware is back on the hunt for new startups as it looks to further raise its profile in the platform-as-a-service market. Sources tell me its latest target is EngineYard, the Ruby on Rails cloud provider that’s raised $37 million from the likes of Amazon, Benchmark, DAG Ventures and Bay Partners. Neither VMware nor EngineYard could be reached for comment. Update: A VMware spokesperson responded to my query in email by saying, “We don’t comment on speculation or rumors.” EngineYard’s Jim Shissler, director of marketing, denied the talks and said EngineYard works closely with VMware because VMware provides the underlying software and is a strategic investor in Terremark, which hosts EngineYard’s enterprise-class platform as a service.

VMware has been buying startups such as Zimbra, SpringSource and others as it works to transition from providing a hypervisor to offering higher-value services. Earlier this year it released its VMforce platform as a service built on Salesforce.com’s infrastructure using SpringSource’s Java-based framework. Adding a Ruby-focused platform or capability makes a lot of sense, and EngineYard has been working on a transition of its own — moving away from startups and more toward the enterprise, where VMware’s focus is.

For a closer look on how the PaaS business is evolving, (GigaOM Pro sub req’d) check out our panel dedicated to the topic at our Structure 2010 conference in two weeks. If platforms as a service don’t interest you, perhaps VMware’s CEO Paul Maritz will explain in his keynote what else his company is looking for in its acquisition spree.

  1. [...] full post on Hacker News If you enjoyed this article, please consider sharing it! Tagged with: Acquire [...]

    Share
  2. [...] GigaOM says VMware is gearing up to buy EngineYard, the Ruby on Rails cloud provider that’s raised $37 million from the likes of Amazon, Benchmark, DAG Ventures and Bay Partners. [...]

    Share
  3. [...] to GigaOM.com, Vmware is considering acquiring EngineYard, a Rails in the Cloud products and technology services [...]

    Share
  4. [...] Exclusive: VMware in Talks to Acquire EngineYard [...]

    Share
  5. [...] Exclusive: VMware in Talks to Acquire EngineYard UPDATED: VMware (s vmw) is back on the hunt for new startups as it looks to further raise its profile in the [...] [...]

    Share
  6. [...] EngineYard: This deal may not be done yet. Indeed, EngineYard says it’s not happening. But EngineYard has taken its Ruby on Rails platform to the enterprise, so buying it would enable VMware to broaden beyond Java, which has a venerable history and huge developer base, to Ruby, which is a younger language that is growing in popularity. [...]

    Share
  7. I wonder if they’ll go after Opscode next.

    Share
  8. [...] today GigaOM reported an ongoing acquisition talk between VMware and Engine Yard, the hosting provider that offers a [...]

    Share
  9. FYI — VMForce has only been announced… it’s nowhere near released as of yet. We’ve been told there will be a Developer Preview available in the Fall, but I’m guessing we won’t see a wide release until sometime next year. Still, it’s surprising to see VMWare moving so quickly to get into the PaaS space.

    Share
  10. [...] VMWare looking at EngineYard … interesting since Amazon funded this Ruby-on-Rails PaaS startup. [...]

    Share

Comments have been disabled for this post