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by glenngillen 1233 days ago
> Salesforce on bought them as a cash generator

As an early Heroku employee, this gave me quite the chuckle.

2 comments

Sorry, I should have guessed that wasn't accurate. But like, surely after they stopped doing any investment in the platform, didn't it start to generate profit easily? How could reselling AWS resources with a premium UI not be profitable?

I just imagined Benioff going "Cool, we can buy this and continue to collect the checks every month, while not developing the UI or integrating it in any way into our business." Basically the same thing they did with Exact Target.

Same - wasn’t an employee but used it often in ~2013-2015 timeframe. I’m pretty sure the valuation was many many many multiples of any sort of revenue based metric, wasn’t it?
Yep.

Also re the timeline, the acquisition was announced in 2010. So your own usage was already a few years post.