The Lighter Side Of The Cloud – The First Cloud App
The Lighter Side Of The Cloud – Cloud Architecture
The Lighter Side Of The Cloud – The Sticky Note
The Lighter Side Of The Cloud – The Name Game
The Lighter Side Of The Cloud – Progress
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

Glenn Blake
Follow Us

Glenn Blake

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

Latest posts by Glenn Blake (see all)

Sorry, comments are closed for this post.

Recent

Technologies That Work Nicely With The Cloud

Technologies That Work Nicely With The Cloud

New Technologies And The Cloud Asides from all the security concerns that has been in the news over the past while, there are still some very exciting and ambitious opportunities available for those who stick it out. Lets take a look at some of the more exciting emerging technologies that can be used in conjunction…

Wearable Tech Jobs Of The Future

Wearable Tech Jobs Of The Future

Wearable Tech Jobs Wearable Technology is a very exciting industry and the sky’s the limit with new possibilities for businesses and consumers. The new technologies will make our lives easier in terms of convenience, while in other ways more complicated due to learning curve of each new product. Lets take a look at wearable tech in…

How M2M Differs From IoT Internet of Things

How M2M Differs From IoT Internet of Things

What Is M2M Machine To Machine? When it comes to communications between machines, the terms Machine to Machine (M2M) and the Internet of Things (IoT) are seemingly similar to each other. In fact, there is a very strong connection between both terms which is why they are often used as the same. However, that is…

Popular Archives

Five Signs The Internet of Things Is About To Explode

Five Signs The Internet of Things Is About To Explode

The Internet of Things Is About To Explode By 2020, Gartner estimates that the Internet of Things (IoT) will generate incremental revenue exceeding $300 billion worldwide. It’s an astoundingly large figure given that the sector barely existed three years ago. We are now rapidly evolving toward a world in which just about everything will become…

Sponsors

The Many Hats Of Today’s IT Managers

The Many Hats Of Today’s IT Managers

The Many Hats of IT Managers In years past, the IT department of most large organizations was much like a version of Middle Earth: a mysterious nether world where people who seemed infinitely smarter than the rest of us bustled around, speaking and typing languages that appeared indecipherable, yet, which made our world work. They…

Selling Your Business To Your Employees

Selling Your Business To Your Employees

Mobility For Your Employees It may seem a radical notion, the idea of selling your business to the people who work for you, but this is the era in which we now work. Employees of all levels are all incredibly aware of their options when it comes to mobility and employability. This doesn’t mean that…

Established in 2009

CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

CloudTweaks Comic Library

Advertising