According to GigaOM.com, Vmware is considering acquiring EngineYard, a Rails in the Cloud products and technology services company. EngineYard develops products such as Rails Application PaaS, Enterprise-grade Rails PaaS and has raised over $36 million from the likes of Amazon, Benchmark, DAG Ventures and Bay Partners.

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 Salesforce.com’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.

There is no confirmation from VMware on EngineYard’s acquisition as VMware does not comment on industry speculation, says GigaOM.

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