Cloud hosting company DigitalOcean raises $130 million

DigitalOcean Cloud Hosting fundraising

DigitalOcean is known for its cheap cloud hosting packages and now the company will be able to expand its operations with the help of a $130 million funding round.

The “cloud” despite its name is not just one giant computer. Instead, it’s made up of various services that are built to offer a seamless environment across all clients’ setups.

DigitalOcean currently services more than 700,000 users and the company since its inception has booted up 13 million cloud servers.

There are a few reasons a company like DigitalOcean would raise $130 million.

First, the company may be upgrading or expanding its infrastructure. Many hosting providers will offer their customers more RAM, extra storage space, and even better CPUs as prices drop and they are able to upgrade aging software.

In other cases, hosting providers will look to offer new services to customers. For example, more memory, managed services, and big enterprise support.

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DigitalOcean is competing in a crowded space that includes the expertise of Amazon AWS, Google Compute Cloud, and Microsoft Azure.

The company could use some of its recently raised money to attract bigger enterprise customers that would normally gravitate towards the competitions more robust data networks.

Whatever the reason for the $130 million funding round, DigitalOcean is proving that it plans to move forward and grow its business, whether that be small or big business is anyone’s guess at this time.

Written by Franklin Simmons

Franklin Simmons

Franklin Simmons is BusinessPundit's Tech Editor. His life is consumed with a love of augmented reality, mobility, and emerging technology. He extensively covers all areas of technology, including the computing, automotive, and healthcare sectors.