We're using both Java and Ruby.
We started out with Ruby and Rails, which worked great for the prototype but we have some very processor-intensive operations and the Ruby code won't scale. Rewriting these in Java produced an instant 100-fold performance improvement, so going forward we're doing that stuff in Java.
On the other hand, we have some text-processing stuff where Ruby really shines. Having used Ruby for that I'd never go back to Java for such tasks.