DigitalOcean Named Top-Tier Software Vendor by APPS RUN THE WORLD in the APPS TOP 500 Market Report

DigitalOcean Strengths, Domain Expertise, and Key Differentiators

DigitalOcean Holdings, Inc. stands out with its strong focus on the developer community, offering a simple and intuitive interface that is especially popular among young and mid-sized developers and startups. The company is known for its affordable and transparent pricing, enabling small and medium-sized businesses to easily predict costs and optimize their budgets. In its portfolio, DigitalOcean combines infrastructure services (IaaS) with platform-as-a-service (PaaS) offerings, providing users with great flexibility to build and manage different types of applications.

The company has made significant investments in artificial intelligence and machine learning by introducing GPU Droplets, Bare Metal GPUs, and the GenAI Platform, positioning itself as an innovative player in the rapidly growing AI technology market. With a global infrastructure that includes multiple data centers worldwide, DigitalOcean ensures low latency and high availability for its users.

DigitalOcean maintains an active user community and offers technical support that helps quickly resolve issues and facilitates knowledge sharing. Products like App Platform and Cloudways Copilot simplify management and automate complex tasks, increasing the productivity of developers and IT teams.

DigitalOcean Recent Developments

At the Deploy 2025 conference, DigitalOcean introduced the GenAI Platform – a solution that enables easy creation and deployment of AI agents without requiring advanced knowledge of machine learning. The platform supports integration with third-party models such as Anthropic, DeepSeek, LLaMA, Mistral, and Hugging Face, allowing the development of applications for document analysis, intelligent customer support, and automated workflows.

In October 2024, DigitalOcean introduced GPU Droplets – virtualized instances powered by NVIDIA H100 GPUs, along with Bare Metal GPUs for dedicated AI/ML workloads. These resources are integrated with Kubernetes and support direct deployment of models from Hugging Face.

The App Platform, DigitalOcean's PaaS solution, has received significant enhancements aimed at improving performance and developer experience. Among the key improvements is the introduction of autoscaling, which enables applications to automatically adjust resource usage based on workload demands. The platform now also supports dedicated IP addresses for applications, providing greater control and stability. Additionally, it offers seamless integration with Bitbucket, allowing developers to deploy applications directly from Bitbucket repositories. Management capabilities have also been improved, with new features such as application archiving, restart options, and CLI access to containers for more efficient operational control.

DigitalOcean Mergers and Acquisitions (M&A) Activities

The most recent significant acquisition was in July 2023, when the company purchased Paperspace for $111 million in cash. This acquisition enabled DigitalOcean users to access advanced GPU infrastructure and software tools for artificial intelligence and machine learning, significantly expanding the company’s portfolio in the AI/ML space.

DigitalOcean Customers in ARTW Customer Database

Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying DigitalOcean applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of DigitalOcean and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Virtual Private Cloud (VPC) customers.

DigitalOcean Key Enterprise and Cloud Applications

Virtual Private Cloud (VPC)

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DigitalOcean Direct vs Indirect sales

DigitalOcean Customers - Breakdown by Geo, Size, Vertical and Product

List of Verified DigitalOcean Customers

No. of DigitalOcean Customers: 623000

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DigitalOcean Holdings, Inc. has a large and diverse customer base worldwide. According to industry estimates, the company has hundreds of thousands of active users. Its customers primarily come from the technology sector, including startups and small to medium-sized businesses, as well as from education, e-commerce, media, financial services, and healthcare. DigitalOcean has a strong presence in the United States, which is its largest market, as well as in Europe—particularly in the United Kingdom, Germany, and France—and also in the Asia region, with key industrial and technology hubs like India and Singapore, as well as in Canada and Australia. The company mainly targets small and medium-sized businesses, startups, and individual developers. However, with the introduction of advanced services like GPU Droplets and Bare Metal, it has started attracting larger companies with more complex AI and machine learning needs, including organizations with several hundred to several thousand employees.

DigitalOcean Market Opportunities, M&A and Geo Expansions

DigitalOcean has unveiled its strategic move to broaden its global footprint with the establishment of a cutting-edge data center in Sydney, Australia (SYD1). This development, marking Sydney as the ninth global region and the fifteenth facility overall for DigitalOcean, is poised to significantly enhance the support for existing and potential customers in Australia and New Zealand.

The former Chief Executive Officer of DigitalOcean, Yancey Spruill, expressed enthusiasm about expanding the company's infrastructure to better serve the needs of small and medium-sized businesses (SMBs) in Australia, New Zealand, and the surrounding region. The establishment of this advanced data center aligns with the company's commitment to providing low-latency connectivity and productivity tools for startup businesses and SMBs in these flourishing markets. As the cloud computing market in Australia is projected to grow by 12.5% by 2025, with SMBs leading in cloud spending growth, the strategic decision to establish a presence in Sydney positions DigitalOcean for success.

DigitalOcean's opportunities lie in both horizontal and vertical market expansion. The company can tap into the growing demand for cloud services globally, especially in regions where Premium AMD Droplets are yet to be introduced. Embracing Cloud, IoT, AI, and ML technologies further opens doors for innovation and service differentiation. The focus on larger customers and targeted sales initiatives aligns with the potential for increased adoption of DigitalOcean's platform and services.

DigitalOcean Risks and Challenges

A leadership transition can bring potential risks to a company. In 2024, DigitalOcean underwent a significant change in its executive team. On January 17, 2024, the company announced the appointment of Paddy Srinivasan as the new Chief Executive Officer (CEO), with his tenure beginning on February 12, 2024. He succeeded Yancey Spruill, who had led the company since 2019 and was credited with taking DigitalOcean public, achieving financial stability, and executing several strategic acquisitions. In June 2024, Bratin Saha was appointed as the new Chief Product and Technology Officer, marking another key leadership addition aimed at driving innovation and advancing the company’s product strategy.

The company primarily relies on individual developers, startups, and small to medium-sized businesses. If these customers do not grow or increase their usage of the services, it could negatively impact revenue and long-term growth.

DigitalOcean Ecosystem, Partners, Resellers and SI

DigitalOcean's ecosystem is strengthened through strategic partnerships, such as the one with MongoDB. The collaboration expands DigitalOcean's managed offerings, providing developers, startups, and SMBs with a fully managed database as a service (DBaaS) solution. This ecosystem integration aligns with the company's mission to simplify cloud computing and empower its users. DigitalOcean's network effects with system integrators and value-added resellers contribute to the seamless integration of technology and services within the broader cloud ecosystem.

Research Methodology

Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.

Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).

For additional information on our methodologies, here's the link: