Facebook Buys Parse To Offer Mobile Development Tools As Its First Paid B2B Service

Facebook acquires Parse

Facebook has just acquired Parse making their debut into a ne business category, which is paid tools and services for developing mobile apps. The company is buying the mobile backend as a service startup in a deal rumoured to be worth $85 million. Neither one of the company’s is commenting on the size of the deal, the only comment Facebook made was that it’s not “material”.

Parse was founded about two years ago by a small group of people consisting of Googlers and Y Combinator who got together to build a useful set of back end tools for mobile developers. The Parse developers originally called the “Heroku” of mobile in a homepage to what was one of YC’s biggest exits to date, the $212 million sale of Heroku to Salesforce.com. The service that help mobile developers store data in the cloud, manage identity log-ins, handling push notification and run custom code in the cloud.

Facebooks winning bid and why it wants Parse

Facebook placed the winning bid for the mobile back end company, apparently there was vicious competition from the other giants from Silicon Valley. The Parse CEO and co-founder Ilya Sukhar said that he chose Facebook over the other companies because Facebook was a better cultural fit.

Facebook is in the process of initiating a big push in becoming more relevant to the mobile developers of the world, Facebook doesn’t have it’s own mobile operating system like Apple or Google; the closest thing they have is the Home overlay for Android. Parse currently has 60,000 apps and roughly the same number of developer, they focused on monetizing the top 10 percent their clientele. Through the deal Facebook will be able to offer back-end services for data storage, notifications and user management.

Facebook’s Director of Product Management Doug Purdy said “This fills out one of the pillars of Facebook platform that we’ve been thinking about for awhile, since 2007, the Facebook platform has been about being an identity mechanism with sharing. But over the course of the last six months, we’ve been thinking about how we can help applications get discovered and how they can be monetized.”

He added later on in the statement “In order to provide the best experience possible, developers also need to build a whole host of infrastructure. Parse is a natural fit. They’ve really just abstracted away a lot of the work necessary to get an app up and running.”

Plans and Existing Customers

Parse has said that existing Parse users won’t be affected with the company being acquired by Facebook and the developers won’t have to integrate Facebook and that existing contracts will be honored. Parse uses the freemium model with a basic free version for up to 1 million requests or pushed per month, the lowest paid version cost $199 a month with 15 million requests a month and 5 million pushes per month. Then the next tier up is the enterprise version where the rates are negotiable.

Source – TechCrunch