Tech IndustryApr 27, 2023
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Adoption for Heroku
Have been looking at Heroku product and wanted to know what is customer adoption for this product and how much revenue does it bring to salesforce? #salesforce #heroku
When I was at Heroku our director started talking about ways to save on AWS spend. That was like almost four years ago. SFDC has been treating Heroku as a loss leader for likely it’s entire time holding it. You can’t sell compute on high margin because customers can easily measure the value in what they use. Whereas with Salesforce proper, Service Cloud, and all the clouds sell SKUs on high margin as customers don’t use everything they bought or really know how to measure their usage value like CPU cycles.
Heroku generates close to $400MM for Salesforce. Profit is another story. Self-serve customer base grew 20% last year, enterprise/contract revenue shrunk and they fired all their sales people during the layoffs. Would recommend not using Heroku, it’s easily one of the least invested-in Salesforce properties, and is now lead by an ex-AWS Kubernetes marketing guy who doesn’t understand Heroku’s value proposition for customers and would rather chase money down the k8s competitor rabbit hole.