DigitalOcean Cloud Startup Looks For Market Share

DigitalOcean Cloud

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

File Photo Of Facebook Ceo

533 Million Facebook Users Had Their Data Stolen and Leaked Online

Facebook Data Stolen and Leaked Online On Saturday, April 3rd, a user from a hacking forum published the personal data from more than 500 million Facebook users. The hacked and published data were available at ...
Mike Johnson

Data Transmission Travel Plans – From The Ground Up

Don’t Forget Networking The term “cloud” was first used by the telecomm industry in early schematics of the Internet to identify the various, non-specific uses data was put to at the end of their cables ...
Tech

What is the Difference Between a VPS and a Cloud VPS?

VPS or Cloud VPS? While researching this article it became very apparent that there is a lot of confusion about the differences between VPS Hosting and a Cloud VPS. They are both Virtual Private Servers, ...
Gary Bernstein

Exposed Data From 21 Million VPN Mobile Users

Exposed Data From 21 Million VPN Mobile Users The data and credentials from 21 million mobile VPN users were found for sale last week in an internet forum. A cyber thief posted the credentials for ...
Lauren Brunson

The Growing Need to Consolidate Multi-Tenant Environments

Consolidate Multi-Tenant Environments Over the past four months, countless businesses and universities have scrambled to the cloud to enable their employees and students to work remotely during the global coronavirus pandemic. Managed service providers (MSPs) ...
Kaylamatthews

What You Need to Know – IoT and Real-Time Operating Systems

Real-Time Operating Systems A real-time operating system, or real-time OS, appears to execute tasks while using a single processing core simultaneously.  However, what's really happening is that the tasks' response time is so fast that ...