Tag: Growth

I’ve written about Bitnami many times in the past. It’s CEO, Erica Brescia, is one of a (sadly) small number of tech startup founders who happen to be women. And, while that makes a great headline or discussion point, it’s Bitnami’s success, outside of any gender-specific focus that really interests me.

Bitnami builds marketplaces that allow cloud vendors to offer the end-user application on top of their clouds. Bitnami is an application store for open source applications — for end users, what this means is that on the cloud platforms that Bitnami is integrated with, they can deploy the open source application or development environment they want quickly and easily — fully configured and ready to run.

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DigitalOcean is a confusing sort of a vendor. Every time the list of leading public cloud vendors comes out, Amazon Web Services (AWS) is #1, with Microsoft Azure, Google Compute Platform and IBM SoftLayer fighting for the bridesmaid slots. We never hear of DigitalOcean in those reviews. That is partly because some people argue about what constitutes cloud and whether DigitalOcean should really be there.

While these semantic arguments about “true” and “false” clouds go on, however, DigitalOcean has quietly (and not so quietly) been building scale. The company is growing rapidly, indeed, two years ago there had been around 1.5 million Droplets (its term for cloud servers) launched. Today, that figure has grown some 800 percent to 13 million. The company has around 700,000 all-time users and is adding 20,000 customers per month.

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As we all know, the public cloud has been growing incredibly fast. What may be less obvious is that growth is likely to continue even if the overall economy—and tech spending—slows.

At least, that’s what cloud companies are seeing… and betting on. According to the Wall Street Journal, ”business demand for cloud services remained strong even amid signs of a broader economic slowdown.” And according to RBC Capital projections reported in the Journal, capital spending among the 18 cloud service providers it tracks jumped 29 percent in 2014, rose just 6 percent in 2015, but will accelerate to 15 percent in 2106. The Journal also said that Amazon, Microsoft and Google spent $ 26 billion in capital expenditures in 2015, a good chunk of it on data center capacity.

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