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1 Reason DigitalOcean's Growth Could Accelerate -- and It's Thanks to Salesforce
Yahoo Finance· 2026-02-18 11:50
Core Insights - Salesforce is shifting its strategy away from Heroku, transitioning it to a "sustaining engineering model" which means no new features will be developed and new customers will not be eligible for Enterprise Account contracts [2] - Despite its leadership position in the PaaS market, Heroku's future appears limited, leading to speculation that existing customers may migrate to competitors like DigitalOcean [2][3] Company Overview - Heroku, acquired by Salesforce in 2011, is recognized as a leader among cloud-native application platforms for 2025 according to Gartner [1] - The platform allows developers to develop, deploy, and manage applications without dealing with underlying infrastructure, emphasizing convenience [6] Competitive Landscape - DigitalOcean is positioned as a likely alternative for Heroku's customers, offering a similar App Platform that allows easy application deployment and management of databases [3][7] - DigitalOcean provides a broader range of services compared to Heroku, including the ability to spin up virtual servers and Kubernetes clusters, catering to diverse developer needs [8] Strategic Focus - Salesforce's pivot away from Heroku may be influenced by a desire to concentrate on AI products like Agentforce, while DigitalOcean continues to innovate in both IaaS and PaaS offerings, including its Gradient AI platform for various AI workloads [9]