$3.2 Million Seed Round for Amazon and Linode Cloud Hosting Challenger DigitalOcean

Digital Ocean cloud hosting

One year after launch, New York City based DigitalOcean already has more than 35,000 customers who have deployed over 300,000 virtual server “Droplets”. As Netcraft recently reported, they are growing faster than any other hosting provider. “The passion developers have for DigitalOcean is off the charts, and that love from their customers has only grown along with their meteoric rise in popularity,” said Brad Gillespie, a Partner at IA Ventures who has joined the Board.

New cloud hosting features: Object Storage, CDN…

DigitalOcean, previously positioned as challenger to cloud hosting incumbents Amazon and Linode by Techcrunch, will use the funds to build out their global infrastructure to meet customer demand, and to grow their world-class engineering and marketing teams. In addition to new hires, the funds will allow for expanding server capacity, adding new domestic and international locations, and rolling out features such as Object Storage, CDN, and 1-click installs of common frameworks.

“The customer demand has been overwhelming,” said Ben Uretsky, the company CEO and co-founder. “This funding will allow us to scale our cloud infrastructure to better serve developers across the globe, in every language and on any stack.”

The extraordinary growth is said to be fueled by DigitalOcean’s value proposition to developers, with a simple cloud hosting experience. Users can create a cloud server in 55 seconds, whereas pricing plans start at $5 per month for 512MB of RAM, 20GB SSD, 1 CPU, and 1TB Transfer. With their approach, a new developer would get a virtual server up and running in less than 55 seconds.

Headquartered in New York City, the cloud hosting provider has servers located in New York, San Francisco, and Amsterdam. DigitalOcean uses KVM virtualization and additionally hosts a library of walkthroughs and tutorials that cover server configuration and optimization.

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