– Citrix announced on Tuesday that they were buying startup Cloud.com, adding to their portfolio a market that could bring $8 billion in sales by 2013.
The deal also brings more competition to Amazon’s Web Services, which targets a different market. Web Services allows companies to run programs on Amazon servers instead of their own. In contrast, Cloud.com develops cloud-infrastructure software, allowing companies to run software on their own machines without the platform development costs.
This is another exit for Redpoint Ventures who was the first money in and is having quite a year. Clearwell was bought by Symantec for $390 million. Qihoo went public and is now boasting a $2.5 billion market capitalization. Home Away went public too; it’s now worth $3.3 billion, and Redpoint owns 26% of it. Responsys also went public and is valued at $760 million. Redpoint was the first money in Cloud.com, so although the purchase price isn’t as big, it’s still a nice multiple.