Cloud-based software developer kits

General Information
Software and Hardware
United States
In 2011
Business Failure
Business Outcome
Shut Down
By 2016
Cause of Failure
Acquisition Flu
Founders & Employees
Number of Founders
Name of Founders
Ilya Sukhar, James Yu, Kevin Lacker, Tikhon Bernstam
Number of Employees
Between 11 And 50
Number of Funding Rounds
Total Funding Amount
Number of Investors

Parse was a mBaaS (Mobile Backend as a service) platform. The firm offered a cloud-based platform for mobile apps developers with tools to let them build, run and test applications while taking care of the back-end support. Its main services were Parse Core to save data, Parse Cloud to run custom app codes, Parse Push for notification purposes, and Parse Analytics which had stats and optimization insights.

Cause of Failure

Parse was a growingly
popular service in the developer’s community and when Facebook offered to
purchase the startup in 2013 for $85 million, Parse’s founders found that it
made sense for their business to join the Zuckerberg’s team.

bought Parse at a time in which its stock was trading for lower than their IPO
and it was not yet confident of how far its business model based on ad-serving
would take them and wanted to test other possible business ideas. Thanks to
Parse, Facebook was able to create a community of mobile app developers for
itself. There
could have also been a brief vision of developing cloud services that would
match those offered by Amazon, Microsoft, and Google. However, once the
Facebook business model was consolidated in the last few years making them
billions, the social network lost interest in competing with the other giants
in the cloud business as it would cost them millions of dollars. They were too
far behind and Parse couldn’t provide them with a long-term profitable source
of revenue, in fact, it was most likely losing money. Facebook decided to shut
down Parse in 2017 to let the team focus on other projects.

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