Rumor: VMware Is Acquiring EngineYard

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.

A VMware spokesperson told GigaOM that they won’t comment on speculation or rumors, so there’s no confirmation yet.

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’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.

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