Feeds

VCs toss gold into DigitalOcean

Funding lets scrappy hoster expand server fleet

HP ProLiant Gen8: Integrated lifecycle automation

Web hosting company DigitalOcean has taken $3.2m in funding to help the company expand its engineering team and buy in more server hardware for its four colocation facilities.

The funding round was led by IA Ventures, along with CrunchFund and TechStars, and was announced on Wednesday. The company hopes to use the dosh to add new services like object storage and an integrated CDN to its cloud, which at the moment offers SSD-backed servers.

Though only a year old, the virtual private server (VPS) hosting company has gathered a lot of interest from both developers, and digital currency miners alike.

One developer, Jason Ormand, bench-marked the performance of DigitalOcean against competitor Linode in February and concluded: "From a strictly performance-per-dollar perspective, DigitalOcean has Linode spanked."

Though it may have the spanking chops, whether DigitalOcean is really locked down compared to the competition is another matter: in April the company admitted that its cloud platform leaked data between some customers. Though it has subsequently fixed that problem, that's exactly the sort of brown-trouser security howler that gives admins the shudders when someone talks about going to the cloud.

DigitalOcean operates out of two colocation facilities in the NYC metro area, one in San Francisco, and one in Amsterdam. The company hopes to add between three and five locations within the next twelve to eighteen months, and has had a lot of user requests for plonking gear into Asia or South America, the company's co-founder Moisey Uretsky told The Reg via email.

By not operating its own facility, the company does put itself at the whims of its infrastructure operators. Cloud leaders Amazon, Microsoft, Rackspace and Google all operate their own formidable data centers.

"For the foreseeable future we have no plans to build out our own facility," Uretsky said. "The logistics of putting that together is rather complex and even with all of the infrastructure built out it would need to be close to a carrier hotel to ensure that we had available connectivity to a large number of providers."

DigitalOcean has over 35,000 customers, and does not disclose revenues. Its most popular server costs $10 per month for 1GB of memory, a 1-core CPU, a 30GB SSD disk, and 2TB of data transfer. ®

Reducing security risks from open source software

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.