Where DigitalOcean Meets The Cloud

Where DigitalOcean Meets The Cloud

Venture Capital Firm Andreessen Horowitz Secures $37 Million for DigitalOcean   

digital-ocean

DigitalOcean is a fast-growing startup that provides cloud hosting services to small developers at a cheaper rate than major cloud computing providers like Amazon Web Services and Microsoft Windows Azure.  In August 2013, DigitalOcean raised $3.2 million. Already that $3.2 million investment has run dry and more employees and data centers are needed to keep up with growth. They contracted the services of Silicon Valley venture capital firm Andreessen Horowitz for another round of financing, this time bringing in $37 million.

DigitalOcean was founded in June 2011; they created their millionth cloud server in January 2014. The company found success attracting smaller, independent developers to rent out their digital servers at rates as low as $0.007 an hour.

Before we came along, there was really no one else that occupied that space and was focused on the experience that a user would get,” DigitalOcean co-founder and CEO Ben Uretsky said in a recent interview with Forbes, remarking on how targeting lower-end users allowed the company to compete with Amazon and Microsoft and eventually turn a profit.

Although they focus on lesser known customers, DigitalOcean works with some big names as well. They run Beyoncé’s website and they have completed projects for Nike.

Andreessen Horowitz does not often work with companies outside the Valley, but they made an exception for the New York City-based DigitalOcean. Looking at the rate of growth the company has shown recently, it’s easy to see why Andreessen Horowitz was willing to make this exception. At the start of 2013 DigitalOcean has only 2,000 customers, now they have more than 150,000. DigitalOcean became profitable in the latter half of 2013.

DigitalOcean is not the only cloud computing startup to receive funding from venture capitalists. Dropbox, a cloud storage service, has raised more than $350 million in venture capital. Another company, Notion Capital, is a venture capital firm that focuses on internet services. Notion Capital solicited funds to expand BCSocial, a company that uses to cloud to help businesses collaborate, and Star, a UK-based cloud hosting provider with over 5,000 customers and $60 million in annual revenue.

Money doesn’t lie. Cloud computing has many useful features, such as being able to instantly increase bandwidth to meet business needs, simple and painless disaster recovery, and the ability to work and collaborate from anywhere with internet access. These features will continue to attract customers and draw investment. This is not just another passing tech fad; cloud computing is here to stay.

By Glenn Blake

About Glenn Blake

Glenn Blake is a writer for CloudTweaks and has been writing about technology trends for over 25 years.

View Website
View All Articles

Sorry, comments are closed for this post.

Comics
Don’t Be Intimidated By Data Governance

Don’t Be Intimidated By Data Governance

Data Governance Data governance, the understanding of the raw data of an organization is an area IT departments have historically viewed as a lose-lose proposition. Not doing anything means organizations run the risk of data loss, data breaches and data anarchy – no control, no oversight – the Wild West with IT is just hoping…

The Key To Improving Business Lies In Eye-Interaction Tech

The Key To Improving Business Lies In Eye-Interaction Tech

Eye-Interaction Technology Analysts at Goldman Sachs predict virtual reality revenue will surpass TV within the next decade. More than just some gaming fad, VR represents a whole new way for organizations to train, research, and explore vast amounts of data. Despite its popularity, however, VR is still not in the hands of the majority, and…

Do Not Rely On Passwords To Protect Your Online Information

Do Not Rely On Passwords To Protect Your Online Information

Password Challenges  Simple passwords are no longer safe to use online. John Barco, vice president of Global Product Marketing at ForgeRock, explains why it’s time the industry embraced more advanced identity-centric solutions that improve the customer experience while also providing stronger security. Since the beginning of logins, consumers have used a simple username and password to…

Are Cloud Solutions Secure Enough Out-of-the-box?

Are Cloud Solutions Secure Enough Out-of-the-box?

Out-of-the-box Cloud Solutions Although people may argue that data is not safe in the Cloud because using cloud infrastructure requires trusting another party to look after mission critical data, cloud services actually are more secure than legacy systems. In fact, a recent study on the state of cloud security in the enterprise market revealed that…

Two 2017 Trends From A Galaxy Far, Far Away

Two 2017 Trends From A Galaxy Far, Far Away

Reaching For The Stars People who know me know that I’m a huge Star Wars fan. I recently had the opportunity to see Rogue One: A Star Wars Story. While I won’t give any spoilers away for the few who haven’t seen the movie yet, I do want to mention a couple of trends from…

3 Keys To Keeping Your Online Data Accessible

3 Keys To Keeping Your Online Data Accessible

Online Data Data storage is often a real headache for businesses. Additionally, the shift to the cloud in response to storage challenges has caused security teams to struggle to reorient, leaving 49 percent of organizations doubting their experts’ ability to adapt. Even so, decision makers should not put off moving from old legacy systems to…

Despite Record Breaches, Secure Third Party Access Still Not An IT Priority

Despite Record Breaches, Secure Third Party Access Still Not An IT Priority

Secure Third Party Access Still Not An IT Priority Research has revealed that third parties cause 63 percent of all data breaches. From HVAC contractors, to IT consultants, to supply chain analysts and beyond, the threats posed by third parties are real and growing. Deloitte, in its Global Survey 2016 of third party risk, reported…

Virtual Immersion And The Extension/Expansion Of Virtual Reality

Virtual Immersion And The Extension/Expansion Of Virtual Reality

Virtual Immersion And Virtual Reality This is a term I created (Virtual Immersion). Ah…the sweet smell of Virtual Immersion Success! Virtual Immersion© (VI) an extension/expansion of Virtual Reality to include the senses beyond visual and auditory. Years ago there was a television commercial for a bathing product called Calgon. The tagline of the commercial was Calgon…