DigitalOcean has successfully acquired web-hosting firm Cloudways for a whopping $350 Million
Who would’ve guessed that a small startup idea for the SMB community, coined by a Pakistani graduate of NED University of Engineering and Technology, would lead to a $350 million deal with the world’s biggest cloud host provider, DigitalOcean?
The news came to light a couple of months back. This is when people on social media were praising Aqib Gadit, co-founder and CEO of Cloudways, for closing an all-cash deal with, none other than, DigitalOcean, a world-leading cloud hosting platform, founded in the United States of America. It is definitely a financial debut in our growing IT ecosystem and the merging of Cloudways with DigitalOcean will benefit developers, working on big or small scales all over the world.
DigitalOcean & Cloudways: What are They?
DigitalOcean is a great platform that provides hosting services for cloud computing, which is one less thing a software developer has to worry about. It provides all kinds of productivity tools for developers, regardless of them being beginners or experts.
It also provides better infrastructure and managing tools for making innovative applications, with better user interface and faster performance. Cloudways, on the flip side, has been a great opportunity for people just starting out with web and software development, because the platforms and managing services start at a reasonable price and it gives you developmental freedom on many cloud providers like Amazon Web Service, Linode, and DigitalOcean, to name a few.
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With its structured staging, vertical scaling, and traffic-free backup management systems, a web developer can start a website and go live on the innovative world wide web within a matter of a few minutes.
A Match Made in Tech Heaven:
DigitalOcean and Cloudways are old business allies. From working together since 2014 and hosting more than 100k websites, it was decided in August 2022, to seal the deal with a full-cash acquisition. The sum of $350 million is to be paid over the course of 30 months after the deal is finalized this month. This collaboration is a breath of fresh air for the SMB (small to medium business) community since this will give them more opportunities and will generate greater revenue from the field of IT and software development.
What’s in it for the SMB Community?
Statistics show that software development and the SMB community make up about half of the entire world’s GDP and their biggest expense is cloud infrastructure since that is the heart and soul of a website or digital program. So, this acquisition will not only help the developers to show their innovative ideas to the world, but it will also be easier and hassle-free for them to work on different hosting platforms.
What’s Next?
Well, you can expect a lot of creative growth in the field of IT and software development with the acquisition of DigitalOcean and Cloudways. The teams of these hosting companies are optimistic that the world will see the true potential of all kinds of developers because innovation is the future.
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