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DigitalOcean Plans to Offer up-to $250,000 in Cloud Credits to All Y Combinator Startups

ENTERPRISE HOSTING

February 2, 2016

Written By DirHost.com

DigitalOcean, a Techstars backed cloud hosting provider, has revealed its new move to offer Y Combinator startups up to $250,000 in credits. To what the company describes as “easy to deploy an SSD cloud server in 55 seconds”, the plan is geared towards providing range of choices to developers for efficiency rationalization.

Though the New York based company seems to be craving for a bigger market share, the move is likely to attract a fresh competition between DigitalOcean and Microsoft. However, its cloud infrastructure has been considered to be reliable among developers due to its flexibility in terms of scalability and price charges. Price ranges from $5/month to $80/month, based on the plan a customer selects. There are several factors that will determine payment amounts and rates, but basically customers will be paying according to the amount of data storage space and amount of memory used. The available plans will enable developers to grow their products more effectively.

The proclaimed simple cloud hosting company is probably going to attract more customers with the new move, as the Y Combinator founders are already their loyal fans. With its simplified control panel and excellent support team, perhaps the developers will benefit from the promotion. Young companies usually spend huge amount of funds in hosting services, and therefore the new offer might be their ultimate solution to slash the expenses.

Apart from the newly announced promotion, DigitalOcean has been offering various goodies to developers. However, Microsoft appears to be the biggest competitor despite the DigitalOcean’s campaigns to attract more developers in the industry. Just a few months ago, Microsoft offered Y Combinator startups Azure credits worth $500,000. The last year’s move by Microsoft incorporated usage of Office 365 app and access to Developer Staff by Microsoft, as well as free services such as DataStax enterprise and Cloudflare.

Other competitors in the startup market are Google Cloud Platform and Amazon Web Services. For instance, Google offered startups including Snapchat and Udacity $100,000 of credits in 2014, and it has been approving several other startups to add in its list. Nevertheless, these two (Microsoft & Google) are unlikely to outweigh DigitalOcean in the market since it is targeting specifically the new Y Combinator companies that are looking for efficient and steadfast data hosting services. Interestingly, DigitalOcean seems not to be teased by the cloud hosting giants like Microsoft and Amazon. This is because so far the company is less concerned about price competition, features comparison, or data center acquisition.

Other competitors in the startup market are Google Cloud Platform and Amazon Web Services. For instance, Google offered startups including Snapchat and Udacity $100,000 of credits in 2014, and it has been approving several other startups to add in its list. Nevertheless, these two (Microsoft & Google) are unlikely to outweigh DigitalOcean in the market since it is targeting specifically the new Y Combinator companies that are looking for efficient and steadfast data hosting services. Interestingly, DigitalOcean seems not to be teased by the cloud hosting giants like Microsoft and Amazon. This is because so far the company is less concerned about price competition, features comparison, or data center acquisition.

All in all, the ‘hidden’ competition among the cloud hosting players may bring a positive impact, whereby startups will obtain more improved customer service delivery.

Written By DirHost.com