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Ask HN: What in Digital Ocean's business plan convinced top VCs to invest?

1 pointsby ritwiktabout 11 years ago
They sure have 1. An awesome team 2. An amazing growth story<p>but they are primarily differentiated by price in a highly capital intensive market [building out DCs is not cheap]. They are going against 3 giants[AMZN, MSFT, GOOG] each with:<p>1. Constantly slashed prices 2. A bigger ecosystem&#x2F;more value add services to further subsidize the infrastructure -- eg. buy Sharepoint licenses, get compute free 3. Native advantage of needing big clouds for their internal infrastructure 4. Deep pockets<p>What positioning moat beyond price am I missing?

2 comments

xytopabout 11 years ago
I dont think they are going against listed giants. Giants offer too much. Im still losing myself in amazon&#x27;s services and pricing model, they are difficult to understand and entrance level is relatively high.. DO - fixed price, minimalistic newbie-type interface where you can relax and just do your things with ease.
ritwiktabout 11 years ago
The point to discuss not really looking for a perfect answer :)