What VMware sees from a possible buy of EngineYard

analysis
Jun 17, 20102 mins

VMware could raise its cloud profile -- assuming Amazon.com doesn't have other plans for the Ruby on Rails cloud platform

It’s just a rumor for now, but EMC’s VMware unit could be seeking new cloud technology as the company looks to further raise its profile — in the cloud computing market generally and in the platform services space specifically. The rumored target, according to the GigaOm site: EngineYard.

The quick description of EngineYard is that it is the Ruby on Rails platform service provider. The company raised $37 million from the likes of Amazon.com, Benchmark, DAG Ventures, and Bay Partners, and those VCs could be in for a quick exit if the rumors are correct. Of course, they are not commenting.

So what would this acquisition get VMware? A pretty good cloud platform provider, if you ask me. As a cloud provider, EngineYard hasn’t gotten much ink, but it is every bit as good as — if not better than — both Google and Microsoft. Ruby on Rails is a very productive way to build apps, and many developers who’ve opted for Ruby are now developing on EngineYard.

One reason this deal may not go through could be the fact that VMware, at the end of the day, is really a software company and EngineYard is a service. However, it could still incorporate EngineYard intellectual property within VMware products, but I figure that’s a lot tougher than it sounds.

Also, major investor Amazon.com could have other plans for EngineYard and perhaps provide a better fit than VMware, given that Amazon.com’s infrastructure service model is complementary to EngineYard’s platform service model.

That said, VMware has a lot of momentum in the market right now, and EngineYard would certainly accelerate that trend. As VMware looks to become a larger part of the cloud, the addition of EngineYard would provide more creditability. 

We’ll see if the rumor is true. Regardless, I figure somebody will buy EngineYard pretty soon. There’s just too much value in that technology right now.

This article, “What VMware sees from a possible buy of EngineYard,” originally appeared at InfoWorld.com. Read more of David Linthicum’s Cloud Computing blog and follow the latest developments in cloud computing at InfoWorld.com.

David Linthicum

David S. Linthicum is an internationally recognized industry expert and thought leader. Dave has authored 13 books on computing, the latest of which is An Insider’s Guide to Cloud Computing. Dave’s industry experience includes tenures as CTO and CEO of several successful software companies, and upper-level management positions in Fortune 100 companies. He keynotes leading technology conferences on cloud computing, SOA, enterprise application integration, and enterprise architecture. Dave writes the Cloud Insider blog for InfoWorld. His views are his own.

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