[HN Gopher] DigitalOcean S-1
       ___________________________________________________________________
        
       DigitalOcean S-1
        
       Author : marc__1
       Score  : 715 points
       Date   : 2021-02-25 13:25 UTC (9 hours ago)
        
 (HTM) web link (www.sec.gov)
 (TXT) w3m dump (www.sec.gov)
        
       | hu3 wrote:
       | edit: if you're going to downvote at least let me know why. I
       | hold HN on high standards.
       | 
       | DO is a fantastic value proposition.
       | 
       | Reminds me when I was gathering cryptocurrency prices from
       | exchanges and needed the lowest delay possible so an algorithm
       | could protect me from pump-and-dumps.
       | 
       | In my testings, a $5/month machine from Digital Ocean was the
       | fastest to fetch prices from Bittrex. I got prices within 0.2
       | milliseconds (yes, under 1 millisecond). It was unbeliavable.
       | 
       | The algo failed miserably ofc. Mostly because Exchanges price API
       | tend to be unstable. Often giving stale or no data.
        
       | ivraatiems wrote:
       | I might have mentioned this before, but DigitalOcean's support is
       | (or was, before I stopped being their customer) absolutely
       | abysmal.
       | 
       | I had a default card set up for auto billing. That card expired.
       | I went to remove the default card -- you cannot remove a default
       | card. Okay. I added a new card and tried to set it as default. It
       | didn't take. (Refreshing the browser reverted the change.)
       | 
       | So I tried another browser, another computer, etc. The change
       | never took. Finally, I contacted their support. It took a ton of
       | back and forth with people who had dubious language comprehension
       | before I finally convinced them anything other than user error
       | was going on... but then, instead of fixing it, they demanded I
       | take a video and upload it for them to prove it was real!
       | 
       | I did, and I paid the invoice manually. The bug was eventually
       | fixed after a month or two, but it was a pain until that
       | happened.
       | 
       | I found another provider who is cheaper for the resources I need
       | and has better customer service by miles. If I can't get you to
       | even take my money in an easy and reliable way, I can't trust you
       | to operate anything I rely on.
        
         | oliverjudge wrote:
         | Out of curiosity where did you move to?
        
           | ivraatiems wrote:
           | I moved to BuyVM, https://buyvm.net/. I had already been
           | using their services for a few years, I just expanded on what
           | I already had.
           | 
           | They are not as large an enterprise as DigitalOcean, by a
           | long shot, but the upside of that is you can speak with the
           | owner and his small staff personally and get personal
           | service. They made me a very good deal.
           | 
           | I also know from their Discord that they have some
           | conservative political leanings, so if that's a thing that
           | matters to you either way, it's there. I don't find it to be
           | represented in their behavior towards customers or who they
           | choose to host, so it was acceptable to me even though I feel
           | differently.
        
             | robertlagrant wrote:
             | Not treating people differently based on their beliefs
             | sounds like someone with leanings on either side, rather
             | than extremists on either side.
        
               | ivraatiems wrote:
               | Yeah. There are definitely people on their Discord I'd
               | call extreme, but none of those people work for or speak
               | for the company.
               | 
               | I thought about it quite a bit, actually. But there is a
               | line there and they haven't crossed it.
        
         | sethammons wrote:
         | My support issue was that I had a dead box and needed it to be
         | available again. Their system thought it was up, but I could
         | not reach it. There was no live support, just submit a ticket
         | and pray. They need real-time support. I'm fine paying for it.
         | Hell, bill me per minute, but I needed eyes in the issue.
         | Instead of waiting for some unknown time for a support
         | response, I deleted my stuff and rebuilt everything. If this
         | were backing a commercial offering of mine, this would be
         | unacceptable.
        
         | wakatime wrote:
         | Maybe they have support tiers? Every time I created a support
         | ticket I got a response within an hour from a technical person.
         | Their support responds much faster than AWS in my experiences.
        
           | ivraatiems wrote:
           | The responses were fast. They were just also nonsensical.
        
         | mattnewton wrote:
         | A small personal project of mine was flagged as compromised or
         | something and taken down. Support couldn't tell me why, I
         | suspect it had something to do with updating regularly through
         | git? To this day I'll never know though, moved it to an aws ec2
         | instance.
        
       | rvz wrote:
       | That sounds like a buy signal. I like this stock.
        
         | unixhero wrote:
         | Well it is not listed just yet! What is it a buy signal for?
        
           | jnwatson wrote:
           | That you can buy it at all is a buy signal. This is a sure
           | sign of too much money chasing too few opportunities.
        
       | jtdev wrote:
       | I was really considering moving from AWS to DO until I noticed
       | this: https://www.digitalocean.com/company/contact/#abuse
       | 
       | So anyone who's offended by content you might host on DO can
       | report your site and some identity politics obsessed bureauocrat
       | decides if you're cancelled or not...? The public cloud has
       | turned into an Orwellian nightmare.
        
         | riffic wrote:
         | you do realize that the folks upstream to DigitalOcean, meaning
         | the ISP and data centers, have their own AUP that DigitalOcean
         | is required to meet in order to be their customer?
         | 
         | Every ISP has an abuse process, this isn't very unique here.
        
         | berniemadoff69 wrote:
         | If you are worried about 'offending people', moving away from
         | AWS sounds like a good idea. AWS's 'Acceptable Use Policy' [0]
         | states: You may not use [...] the Services [...] to [...]
         | display [...] content that is [...] offensive.
         | 
         | However, moving to D.O. is a bad idea, because they have
         | virtually the same policies. They can pull the plug if they
         | want to, because it's their service.
         | 
         | [0] https://aws.amazon.com/aup/
        
         | 1f60c wrote:
         | From your link:
         | 
         | > Report abuse:
         | 
         | >
         | 
         | > - DMCA Takedown
         | 
         | > - Trademark Infringement
         | 
         | > - Spam
         | 
         | > - Phishing
         | 
         | > - Malware
         | 
         | > - Botnet
         | 
         | > - Intrusion/exploit attempts (Bruteforce, Scans etc)
         | 
         | > - Child Abuse
         | 
         | > - Violent Threats and Harassment
         | 
         | > - Other
         | 
         | That seems like a reasonable list of stuff I wouldn't want to
         | have my platform be used for, either. Though, one might
         | reasonably take issue with that "Other" category, but note that
         | --at least in the US--web hosts cannot be forced to host any
         | content they don't want to.
        
           | jtdev wrote:
           | I think you're downplaying the "Other" category, which
           | literally gives DO carte blanche in cancelling those they
           | don't approve of, or worse who the mob pressures DO to
           | cancel.
           | 
           | Do you not see how problematic this is? I agree with all of
           | the other categories wholeheartedly, but even then,
           | application of the policies of these organizations should be
           | uniform, i.e., if both right wing and left wing websites
           | publishes "Violent Threats and Harrassment", both should be
           | taken down. That's not what we're seeing in practice from the
           | major cloud providers.
        
             | 1f60c wrote:
             | > Do you not see how problematic this is?
             | 
             | Their platform, their rules.
        
               | jtdev wrote:
               | "Their platform" has become the public square. If you
               | think allowing unfettered control of such a utility by a
               | small number of mega corporations - with political biases
               | that change to suit their bottom line - is a good thing
               | then I'm not sure we're on the same page, in the same
               | book, on the same planet.
        
       | utahcon wrote:
       | Have been a user and fan of DO for years. Their product offering
       | doesn't grow as fast as some cloud providers, but they are still
       | my favorite for just about everything.
        
       | alfg wrote:
       | Thank you Digital Ocean! I've been a customer since the early
       | days and had just a few problems, but they were quick to answer
       | and address. I love the simplicity of their platform and will
       | continue to use their services!
        
       | dbyrd wrote:
       | I used to work at DigitalOcean. Can confirm we didn't think a lot
       | about Linode. We saw AWS as the real competitor. If there was
       | someone in the VPS market we respected and tried to emulate it
       | would have been OVH, not Linode.
        
       | yannoninator wrote:
       | What is the point of DigitalOcean, Linode etc, when one can use
       | the more reliable big cloud providers GCP/AWS/Azure.
       | 
       | I don't think DO's offerings are strong enough to compete with
       | the big players long term, especially in production.
       | 
       | Seems like an exit for a later acquisition by a bigger company,
       | like Slack with Salesforce.
        
         | tyingq wrote:
         | For many use cases, the included free bandwidth and no _" oops
         | I just spent a lot more than I intended to"_ features make DO
         | vastly superior to AWS/GCP/Azure.
        
         | syshum wrote:
         | The offerings of DO and others are simpliar
         | 
         | That is the target, AWS you need a math degree to understand
         | the billing and even then you will never know exactly what you
         | will be billed until you are actually billed...
         | 
         | This is not the case with DO and Linode
         | 
         | Sure for a large enterprise that needs that complexity and
         | flexiblity to squeeze every penny out it would not be a good
         | fit
         | 
         | but for SMB work loads, it is great
        
         | jsight wrote:
         | It seems to me that these services are much more cost effective
         | than AWS.
        
           | notsureaboutpg wrote:
           | They're not...
           | 
           | Look at the pricing between DO Droplets and AWS Lightsail
           | instances for example
        
           | cashewchoo wrote:
           | This. DO, imo, crushes AWS's pricing, documentation and ease
           | of use for anyone but big enterprises. I used their managed
           | k8s for a personal project as someone who's never used k8s
           | before and it:
           | 
           | * didn't cost more than the $10 droplet it ran on * just
           | worked * super easy to operate * has had no issues so far
           | 
           | If I were working for any kind of not-ridiculously-large
           | business that wasn't connected to an endless funnel of money
           | (VC/adtech...?) I'd pick DO.
        
             | RKearney wrote:
             | How do you figure?
             | 
             | $10 DO Dropplet gets you 1 CPU, 2GB RAM, 50GB SSD, and 2TB
             | of bandwidth.
             | 
             | $10 AWS Lifghtsail instance gets you 1 CPU, 2GB RAM, 60GB
             | SSD, and 3 TB of transfer.
        
               | jsight wrote:
               | Oh, thanks, I was not aware of Lightsail at all. It seems
               | like this brings them much closer to being a competitive
               | offering.
        
               | cashewchoo wrote:
               | Their VPS pricing is competitive but pretty much
               | everything else isn't. Specifically, I'm looking at EKS
               | vs DO managed k8s, block storage for VPS's, and so on.
        
               | RKearney wrote:
               | DO charges $0.10/GB per month for block storage, the same
               | as AWS Lightsail charges for block storage. AWS also has
               | Lightsail Containers which are far cheaper than EKS and
               | is their DO/Linode/etc equivalent.
               | 
               | Lightsail also offers load balancers for $18/mo compared
               | to DO's $10, $30, or $60 per month.
               | 
               | DO $15/mo managed DB 1G 1vCPU 10G SSD
               | 
               | AWS $15/mo managed DB 1G 1vCPU 40G SSD
               | 
               | I'm really not seeing how "pretty much everything else
               | isn't" with respect to their offerings.
        
               | nickjj wrote:
               | > How do you figure?
               | 
               | The last time I checked Lightsail uses similar CPU
               | credits[0] as their t2 ec2 instances.
               | 
               | As long as you're only using a tiny portion of your CPU
               | it's fine but if you start doing work on your instance
               | where your CPU is being used for a sustained amount of
               | time then you run out of CPU credits and performance is
               | drastically degraded.
               | 
               | DigitalOcean has no such mechanism. I've never had a
               | droplet's CPU performance get penalized because I used
               | the allocated resources that I was paying for.
               | 
               | [0]: https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/
               | burstabl...
        
               | ec109685 wrote:
               | Yeah, your right: https://aws.amazon.com/lightsail/faq/
        
               | coder543 wrote:
               | I haven't really touched Lightsail in years, but this
               | page shows a really nice graph that helps you understand
               | your instance's CPU usage: https://lightsail.aws.amazon.c
               | om/ls/docs/en_us/articles/amaz...
               | 
               | From what I've seen of benchmarks online, DO's droplets
               | have better sustained (and often overall) performance
               | than Lightsail, and this looks to be the reason why.
               | 
               | (Which isn't to say people should avoid Lightsail, but I
               | don't think Lightsail is the _obvious_ 1:1 replacement
               | for DO that a couple of people in this thread want it to
               | be. Lightsail intentionally restricts various things to
               | avoid cannibalizing their normal AWS sales.)
        
               | JonoBB wrote:
               | The performance of that DO droplet will be far in excess
               | of Lightsail.
        
           | offtop5 wrote:
           | I'd argue that the billing is much more straightforward.
           | 
           | For example, you just pay $5 for a monthly droplet. AWS
           | offers a near competitor to this,AWS light sail.
           | 
           | Digitalocean is easier to use, but only marginally. I
           | strongly suspect many users who find AWS to be a confusing
           | mess try DO instead. I used DO for a long time , but I've
           | since switched to AWS
        
         | pmorici wrote:
         | Simpler and less complex?
        
           | yannoninator wrote:
           | They currently have an incident with their droplets right now
           | at the time of writing, hardly reliable.
        
             | jakelazaroff wrote:
             | Remember when an AWS outage a few months ago took down like
             | half the Internet?
        
               | FDSGSG wrote:
               | Yeah, but nobody is going to blame you when half of the
               | internet is down.
        
         | BasedInfra wrote:
         | The pie is big enough and also don't think big cloud players
         | and DO are after the same customers.
         | 
         | 34% of the web still runs on Wordpress. A lot want somewhere
         | cheap and easy to use with more power than shared hosting.
        
           | yannoninator wrote:
           | AWS LightSail is basically DigitalOcean with a huge jetpack
           | with the ability to extend into AWS's ecosystem.
        
             | Dirlewanger wrote:
             | You on the AWS Social Media Team or something? People don't
             | want to do business with Amazon.
        
             | ksec wrote:
             | LightSail is really really slow. You will have to pay
             | double to get similar CPU performance to DO.
             | 
             | But I guess that is the price you pay for being AWS ready.
        
         | halfmatthalfcat wrote:
         | More transparent pricing, faster iteration cycle on new
         | features, easy-to-use cloud UI, developer tooling, etc
        
         | rmorey wrote:
         | I think the value prop is simplicity and customer service.
         | DO/Linode/Vultr offer a way simplified product that's perfect
         | for the long tail of users that don't need all the more
         | advanced aws/gcp features. Plenty of great businesses are
         | already being run on these smaller platforms. And you just have
         | to read one of the GCP account horror stories on here to get
         | the opportunity for better customer service for SMB customers
        
         | lbotos wrote:
         | for some of us, it's a desire to _not_ give Google, Amazon, or
         | Microsoft any money.
         | 
         | The big clouds offer great features, but My 5/mo Linode is fine
         | to run a 3 user matrix server.
         | 
         | (I used to work at Linode, but that didn't sway my desire to
         | avoid the big 3.)
        
           | ryukafalz wrote:
           | Oh hey cool to see you in here! Thanks for referring me all
           | those years ago - I'm still there! :)
        
         | tw04 wrote:
         | Do you think Kia or Toyota (the brand, not the company) have a
         | long term play, or is everyone going to shift to Lexus,
         | Mercedes and BMW?
         | 
         | Not everyone is interested in paying the exhorbitant pricing
         | the big cloud providers charge, regardless of features.
         | 
         | Now they might get acquired by the big boys and run under their
         | existing brands as a low cost alternative. But the services
         | aren't going away. I'm willing to bet the big guys want nothing
         | to do with them though. It'll just eat into their margin.
        
         | snarfy wrote:
         | What's not strong about them? Not everybody needs or wants
         | AWS's 1000+ service offerings. Managed k8s and databases are
         | all most people want.
        
           | leesalminen wrote:
           | What's uptime like on DO managed databases? The primary thing
           | keeping me on AWS is Aurora for MySQL. The uptime we've
           | experienced is phenomenal.
        
         | jnwatson wrote:
         | The company I work for solely uses DO. It has all the things
         | you might want that won't get you cloud vendor locked. Plus
         | their UI is actually useable, unlike my experience with AWS.
         | 
         | Many SV startups just end up taking their VC investment and
         | handing it to AWS over a period of 18 months.
        
         | nowherebeen wrote:
         | I think it mostly comes down to price (at least for me). They
         | will always have to be cheaper than big cloud providers to stay
         | competitive.
        
         | leesalminen wrote:
         | While I wouldn't use DO et. al. for my production environment
         | (it's on AWS), I've got a handful of ancillary services that
         | don't need the complexity of AWS.
         | 
         | They're so small and inconsequential to the business that I
         | don't want to spend any time thinking about the security risk
         | of keeping them anywhere near production. They don't need
         | access to prod data so why put them in a position where they
         | could potentially allow access to it?
         | 
         | So, for me, the easiest thing was to be put them with a
         | completely different company. Don't have to worry about any
         | potential issues with imitating it on AWS (via additional
         | accounts, different region, etc) which are all prone to human
         | failure over time.
         | 
         | Maybe I've a bad reason, but it works for me and DO gets
         | ~$50/mo from us and I've never considered switching.
        
         | Kovah wrote:
         | Easy setup and maintenance, and reliable pricing. Order a Unix
         | server for $10 per month, 1TB traffic included, and you get a
         | server with fixed hardware specs. If you get more customers,
         | you scale the server and pay a higher price. On AWS and others:
         | spin up a server that costs more in comparision to
         | Digitalocean, and prepare to find costs on your bill you never
         | thought you would have: traffic, permanent storage, logging,...
        
         | eljimmy wrote:
         | I've been using Linode for 7 years now and I've had very little
         | downtime. Pretty reliable in my experience.
         | 
         | Mind you, I'm just hosting a simple website and mail server.
        
         | brobdingnagians wrote:
         | The point is that they aren't GCP/AWS/Azure. I don't want to
         | give more money to Eric Schmidt, Bill Gates, or Jeff Bezos.
         | 
         | Also, GCP/AWS/Azure don't support OpenBSD. There are others who
         | do. I just want a good dedicated server for a good price.
        
           | nunodonato wrote:
           | This. Some of us are actually disgusted with amazon and
           | prefer not to do business with it. Yes, even AWS
        
         | jwr wrote:
         | I use DO because it's simple and easy. I got tired of dealing
         | with AWS corporate-sized crap, all I want is to spin up several
         | servers using terraform and get work done. They way you can
         | automatically apply firewalling rules to server tags, for
         | example, is exactly what I need.
         | 
         | And don't even mention Azure, where I feel like in a huge maze
         | of mirrors. Nothing is simple, and you waste lots of time on
         | clicking and figuring things out.
         | 
         | So yes, DO has very real value, and I'm glad they exist. The
         | only roughly comparable provider I found was Vultr, which I
         | like quite a bit, too.
        
         | mgkimsal wrote:
         | Doing anything with those big vendors is an absolute headache,
         | and requires a lot of vendor-specific knowledge/experience,
         | which is expensive (and their offerings are generally expensive
         | and/or harder to estimate pricing on).
         | 
         | DO/Linode and others are perfectly fine serving a sizable
         | audience of users who do not need the complexities that those
         | larger vendors offer.
         | 
         | I struggled for days trying to add more disk to an existing
         | ubuntu image on Azure in 2018. Documentation sucked - both what
         | was there and discoverability. Their instructions just...
         | didn't work, the UI was incredibly .... Azure wasn't my choice
         | - client had O365 and their 'IT vendor' had 'credits' on Azure,
         | so... I had to go with Azure... and it was a huge time sink to
         | do some basic stuff that is literally a few clicks with DO and
         | Linode.
         | 
         | Yes, I don't think I can create private VPNs in the cloud with
         | DO - I don't need to for most projects. The level of
         | functionality DO/Linode/etc provide is adequate for a lot of
         | projects, and they are growing their new functionality to serve
         | needs in a way that seems usable by people without needing to
         | be a certified expert in BigVendorCo.
        
           | yannoninator wrote:
           | I think AWS LightSail is what you would want, also Cloud Run
           | is also another option.
        
             | mgkimsal wrote:
             | AWS Lightsail is not available on Azure.
             | 
             | And... there's nothing inherently horrible about lightsail,
             | but if I've decided that's all I need, I may go with other
             | companies that have that model as their main focus. If I
             | decide I want more of the AWS infrastructure, I'd stay in
             | AWS (or... GCP, or Azure, or whatever).
        
         | azemetre wrote:
         | I don't own a business just personal projects, but one reason
         | why I prefer DO over AWS, GCP, and Azure is the billing aspect.
         | With DO I just buy credits and if I go over the limit they
         | cancel my services, I'm fine with that. With AWS I could rack
         | up an insane bill, I'm not fine with that. Notifications about
         | billing is not the same as suspending all services.
         | 
         | This is why I like DO. If other cloud providers do have this
         | please lmk because nothing makes me more nervous than having my
         | personal CC on file with very little retribution as a consumer
         | (I don't want to get banned from all Google services for doing
         | a charge back).
        
         | stanmancan wrote:
         | Simplicity. As a solo dev I find AWS and GCP to be a nightmare.
         | I do t have time to learn either interface, and not doing so is
         | dangerous as not knowing the inner workings can have security
         | or reliability consequences. Just look at all the exposed S3
         | buckets over the years.
         | 
         | Just picking a VPS from Amazon is an absolute nightmare. All
         | the different levels, with the credit bullshit.
         | 
         | DO I can log in, pick a VPS with the specs I need and be done
         | with it. I don't need to worry about over using it and running
         | out of credits and being throttled and having that to
         | troubleshoot.
         | 
         | DO has been reliable for me, affordable, and incredibly easy to
         | understand and use.
        
       | neycoda wrote:
       | Public companies are when private companies have grown to the
       | point that the leaders don't know what to do with it and can't
       | figure out how to compete any longer.
        
       | stephenSinniah wrote:
       | From the risk factors summary:
       | 
       | Implications of Being an Emerging Growth Company
       | 
       | We are an "emerging growth company" as defined in the Jumpstart
       | Our Business Startups Act of 2012, or the JOBS Act. We may take
       | advantage of certain exemptions from various public company
       | reporting requirements, including not being required to have our
       | internal controls over financial reporting audited by our
       | independent registered public accounting firm under Section 404
       | of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act,
       | reduced disclosure obligations regarding executive compensation
       | in our periodic reports and proxy statements and exemptions from
       | the requirements of holding a non-binding advisory vote on
       | executive compensation and any golden parachute payments. We may
       | take advantage of these exemptions for up to five years or until
       | we are no longer an emerging growth company, whichever is
       | earlier. In addition, the JOBS Act provides that an "emerging
       | growth company" can delay adopting new or revised accounting
       | standards until those standards apply to private companies. We
       | have elected to take advantage of certain of the reduced
       | disclosure obligations in the registration statement of which
       | this prospectus is a part and may elect to take advantage of
       | other reduced reporting requirements in future filings. As a
       | result, the information that we provide to our stockholders may
       | be different than you might receive from other public reporting
       | companies in which you hold equity interests.
       | 
       | Wow, I didn't know about this. Shouldn't financial reporting
       | always be transparent?
        
         | calderarrow wrote:
         | CPA here.
         | 
         | The short answer is theoretically, yes, but in practice, it's
         | not always practical to have transparent financial reporting.
         | 
         | For context, financial reporting is a tradeoff between cost and
         | effectiveness. Whenever you're reading audited financial
         | statements, you're reading an accounting professional's opinion
         | which would be reasonable given a certain level of constraints.
         | In theory, auditors could audit every facet of an organization
         | and obtain 99.99% assurance, but the financial cost of doing so
         | typically doesn't make sense for the company nor shareholders.
         | 
         | Of the reduced disclosures, the most significant is not having
         | their internal controls audited. For a big company, this is a
         | red flag because the financial accounts are only reasonable if
         | you also have reasonable assurance that there are controls in
         | place to prevent fraud and that they're working effectively.
         | 
         | But for smaller companies where most of the ownership is
         | usually owned by founder-workers, employees, or early investors
         | who are monitoring it on the ground level, there aren't many
         | benefits from increased reporting over internal controls
         | because if they are committing fraud, they'd mostly be
         | defrauding themselves! That, combined with the fact that most
         | early stage companies are already resource-constrained, makes
         | regulators a bit more lenient because they assume
         | investors/employees know what they're getting themselves into.
         | 
         | Now, when a company decides to go public, they need some time
         | to adopt best practices and comply with broader regulations.
         | That takes time, so regulators give them a few years to get the
         | personnel and processes in place without penalizing them. But
         | to cover their bases, they're required to make disclosures like
         | above, so that early investors buying into the IPO know that
         | they won't have similar levels of assurance about the
         | financials for a few years.
        
           | stephenSinniah wrote:
           | Very interesting, thank you for the insight.
        
         | paws wrote:
         | Huh, that's a bit surprising. Can anyone point to examples of
         | what kinds of disclosure obligations are reduced? e.g.
         | liquidation multipliers?
        
         | gen220 wrote:
         | From your snippet:
         | 
         | > We may take advantage of these exemptions for up to five
         | years or until we are no longer an emerging growth company,
         | whichever is earlier.
         | 
         | The definition of "emerging growth company", from
         | https://www.sec.gov/smallbusiness/goingpublic/EGC
         | 
         | > A company qualifies as an emerging growth company if it has
         | total annual gross revenues of less than $1.07 billion during
         | its most recently completed fiscal year and, as of December 8,
         | 2011, had not sold common equity securities under a
         | registration statement. A company continues to be an emerging
         | growth company for the first five fiscal years after it
         | completes an IPO, unless one of the following occurs:
         | 
         | > - its total annual gross revenues are $1.07 billion or more
         | 
         | > - it has issued more than $1 billion in non-convertible debt
         | in the past three years or
         | 
         | > - it becomes a "large accelerated filer," as defined in
         | Exchange Act Rule 12b-2
         | 
         | 2020's gross revenue was 318m growing at 50-60m yoy from prior
         | years. So, unless that growth is somehow compounding, the 5
         | years post-IPO is the most likely outcome.
         | 
         | The biggest implications are relaxed requirements around
         | explaining executive compensation, and that financial control
         | auditing (SOX-compliance) is not required.
         | 
         | It's not necessarily a bad thing for investors, but a trade-
         | off. It means the company can focus more on growth and less
         | elsewhere.
        
       | dukeofdoom wrote:
       | So how does one buy ipo shares? One of my resolutions for this
       | year was to buy shares in companies I do business with.
        
         | sithlord wrote:
         | Be a giant investor, ie a bank. IPOs are there for banks to be
         | able to buy up shares at a low price, then dump it when retail
         | investors get their turn to run it up before banks sell off.
        
           | cat199 wrote:
           | another option is that one can also choose to be rich to gain
           | access to more wealth:
           | 
           | https://www.investor.gov/introduction-investing/general-
           | reso...
           | 
           | 200k/yr for 2 yrs, or >1M net worth % price(house).
        
             | sevencolors wrote:
             | So not for us "poors" making less than that. They really
             | hate retail investors
             | 
             |  _insert angry punk sentiment here_
        
             | milkshakes wrote:
             | being an accredited investor doesn't magically get you IPO
             | shares. they are very scarce and almost completely
             | allocated to high volume institutions (you might get lucky
             | if you have a very large relationship with one such
             | institution but that's harder and harder these days)
        
             | csmiller wrote:
             | I think you can just take the Series 65 and be good to go
             | these days
        
             | eklavya wrote:
             | Why isn't it regulated in the US? In India everybody gets a
             | chance to buy in IPOs, it's randomly assigned regardless of
             | how much you applied for. Promoters and institutional
             | investors are even supposed to hold it for 9 months before
             | they can sell it in the market.
        
               | mtnGoat wrote:
               | all decisions in the US are driven by dollars, and the
               | guidelines are usually made by those that have a lot of
               | dollars. so they create circular situations to benefit
               | themselves.
        
         | sct202 wrote:
         | You can sometimes buy pre-ipo shares on EquityZen or similar
         | platforms if you meet certain standards. It's all very thinly
         | offered though, and sometimes they bundle offers.
        
         | Havoc wrote:
         | They allocate chunks to the big brokerages and you can apply
         | for a piece. Think you need to meet sophisticated investor
         | criteria tho
        
       | fersarr wrote:
       | So simple and nice to use
        
       | pqdbr wrote:
       | If someone from DigitalOcean is reading this, PLEASE, we need a
       | datacenter in Brazil.
        
         | toast0 wrote:
         | Brazil is _really_ expensive to operate in. A DC in Miami would
         | reduce latency noticably, but should be reasonable costwise.
        
       | gizmo wrote:
       | Excellent growth, fair margins. Probably worth about $3bn. If it
       | IPOs at less than $5bn it's probably worth picking up. Long term
       | digitalocean will struggle to maintain its margins when competing
       | with Azure and AWS on one side, and Cloudflare edge computing on
       | the other side, so I don't think it can command the same kind of
       | premium we've seen from other tech IPOs.
       | 
       | A big red flag is that 570,000 customers bring in only 357m in
       | rev. That's $50 a month for the average customer. That's way too
       | low.
        
         | lapnitnelav wrote:
         | Hello, I'm the $50 / month customer.
         | 
         | Not an internet business per say, mostly used in the context of
         | processing and storing data + internal apps.
         | 
         | Do is great value, although not the cheapest. They need to
         | double down on the useful items, maybe go a bit offroad in what
         | they offer, lest they might be a in rough spot.
        
         | jermaustin1 wrote:
         | > That's $50 a month for the average customer. That's way too
         | low.
         | 
         | I vaguely remember a talk I had with an employee there was a
         | time when I think the average user was paying only $20/mo,
         | which at the time, I had a $250-500/mo bill depending on load.
         | 
         | This was before they even had a load balancer product (so
         | 2012-2013-ish?), and I was running a fairly unsuccessful
         | managed WordPress offering that had dynamic scaling based on
         | the reported metrics.
         | 
         | The infrastructure was just a big server for MySql, and a tiny
         | server for the orchestrator. Then it would use the DO API to
         | spin up new servers off a snapshot, ssh into them, and run the
         | setup script to point to the right Wordpress instance in the
         | database, then add it to the nginx reverse proxy list for the
         | domain.
         | 
         | The whole thing could scale up or down in 30 seconds. Sure it
         | isn't as fast as AWS or Azure could scale, but we were in
         | control, in code, before containerizing was even really a
         | thing.
        
         | bklyn11201 wrote:
         | A newsletter about SAAS called CloudedJudgement sent this in
         | January:
         | 
         | > SaaS businesses are valued on a multiple of their revenue -
         | in most cases the projected revenue for the next 12 months.
         | Multiples shown below are calculated by taking the Enterprise
         | Value (market cap + debt - cash) / NTM revenue. In the buckets
         | below I consider high growth >30% projected NTM growth, mid
         | growth 15%-30% and low growth <15%
         | 
         | So if DO is mid growth, you could use 17x as the EV / NTM
         | multiple. So if 2021 revenue will be 320mm + 25% = 397mm NTM *
         | 17x = 6749mm EV.
         | 
         | Total debt is 263mm so best (rough) guess at equity market cap
         | is 6749mm - 263mm debt + 100mm cash
        
         | jakelazaroff wrote:
         | I wonder what the distribution of revenue per customer looks
         | like. I bet (hope?) that at the low end there are a lot of
         | consumers who set up a $5 droplet to tinker around for a few
         | months without doing much more, and that the revenue figures
         | are propped up by a small group of bigger customers spending
         | much more.
        
           | CameronNemo wrote:
           | I also think this distribution would be fascinating.
        
         | nly wrote:
         | $50 seems pretty good when you can get a $5 droplet.
        
           | tgtweak wrote:
           | Believe it or not, $50 is great for a "self service" company
           | like this. No enterprise sales teams pushing complicated
           | billing or contracts, just customers (mostly devs/startups)
           | choosing what they need without endless upsells. Looking at
           | churn and seeing that per-customer number go up over time is
           | the real tell here.
           | 
           | Keeping it simple is actually very hard :)
        
         | staysaasy wrote:
         | In today's frothy market, do you think that they'd only be at
         | $3B? Not baiting at all, I'm curious on how you'd break this
         | down as it's always an arcane art.
         | 
         | I mainly wonder as companies like C3.ai are above a $10B market
         | cap on 50% or less of DO's revenue. And C3 (just to extend the
         | example) is carrying lower margin services revenue as well.
         | Growth is somewhat different, granted.
        
         | [deleted]
        
         | Thaxll wrote:
         | Because DO is not used in enterprise, there is no reasons to
         | use DO at work when you can use all other cloud providers.
        
           | heliodor wrote:
           | Read through the comments. There are plenty of them stating
           | what they love about DO.
        
             | Thaxll wrote:
             | I don't see why you would use DO it's vastly inferior to
             | every cloud provider, the only reason people use DO is for
             | the price, it's cheap compare to AWS, Google or Azure.
        
               | heliodor wrote:
               | That's okay, the comments can prove illuminating. People
               | like the documentation. People like the simplicity.
               | People like the UX. And more. Give the comments a read.
               | 
               | If you value understanding how people make purchasing
               | decisions, this is an opportunity to get some insight
               | because as you can see, there's a lot more to it than
               | what you were able to enumerate.
               | 
               | Seems you might be a software engineer. This should
               | interest you because an engineer that understand the
               | business end of things is immensely more valuable than a
               | heads-down coder in the majority of tech companies.
        
               | ForHackernews wrote:
               | It's a lot cheaper, and because it's smaller they don't
               | try to lock you into their own proprietary crap like the
               | big three.
               | 
               | Cost savings + flexibility/avoiding vendor lock-in are DO
               | selling points in my mind.
        
               | Tostino wrote:
               | For some workloads, it's also much faster for similar
               | money.
               | 
               | I looked into migrating my app to Azure, to get similar
               | performance to what I have in DO was over 3x the monthly
               | cost. Worked with Azure support to benchmark and try and
               | come up with a plan to migrate, and the support rep ended
               | by saying essentially "don't think we can get close to
               | your current performance for near that price".
               | 
               | It's not cut and dry.
        
         | fasteo wrote:
         | I saw this as an advantage though. They do not have whale
         | customers bringing a significant % of their revenue. I see
         | lower risk here
         | 
         | "Our average revenue per customer (which we refer to as ARPU)
         | has increased significantly, from $35.97 in 2018 to $40.16 in
         | 2019 to $47.78 in 2020. We have no material customer
         | concentration as our top 25 customers made up 11%, 10% and 9%
         | of our revenue in 2018, 2019 and 2020, respectively."
        
       | halfmatthalfcat wrote:
       | I love DigitalOcean. The simplicity of their UI, friendly CLI
       | tooling and (as a hosted k8s customer) the frequency of updates
       | to their offerings.
       | 
       | BUT:
       | 
       | 1. Their web UI stability is terrible (constantly hangs and
       | errors out)
       | 
       | 2. Their hosted DB IOPS aren't competitive with other PaaS
       | providers. There's also no way to scale DB size dynamically
       | without upgrading to a new price tier which is overkill.
       | 
       | 3. Their Kubernetes Control Plane scaling is obfuscated. I had to
       | contact support to realize that the control plane nodes are
       | somehow tied to the size of your node pool when you create the
       | cluster? That's not documented anywhere and was the cause of many
       | control plane timeouts.
       | 
       | 4. No ALIAS dns record, no way to serve Spaces from an apex
       | domain. (I know this is a vendor specific implementation but it's
       | table stakes imo)
       | 
       | Again, I'm a (mostly) happy DO customer and wish them the best
       | but if they really want to be seen on the same level as AWS or
       | GCP in terms of some parity, they need to include some of these
       | QoL features.
        
         | nerdbaggy wrote:
         | Their support is also very lacking, multi thousand a month
         | spend with them buy tickets still take hours. But support seems
         | the hardest thing to scale especially with the number of
         | tickets they get about things not their fault.
        
           | jbrooksuk wrote:
           | We had the chance to buy a support plan with DO in a previous
           | job. May be worth asking if that's something they can help
           | with?
        
         | sdflhasjd wrote:
         | I actually think their UI is too form over function. One
         | particular annoyance I had recently was with the DNS zone
         | editor.
         | 
         | It truncates both the record contents and the domain name,
         | which means that if you've got a bunch of long domains with TXT
         | records, telling them apart means copying the contents into a
         | text editor to see the truncated text.
         | 
         | e.g                 somekey._dkim.subdomaina.domain.com
         | k=rsa; t=s; p=MIGfAAAA
         | somekey._dkim.subdomainb.domain.com     k=rsa; t=s; p=MIGfBBBB
         | somekey._dkim.subdomainc.domain.com     k=rsa; t=s; p=MIGfAAAA
         | 
         | getting truncated down to
         | somekey._dkim.subdo...     k=rsa; t=s; p=MI...
         | somekey._dkim.subdo...     k=rsa; t=s; p=MI...
         | somekey._dkim.subdo...     k=rsa; t=s; p=MI...
         | 
         | Compared to AWS, which is visually unappealing, but I can
         | actually see my DNS records....
        
           | quantumcd wrote:
           | I agree, but I seem to recall creating/editing records much
           | easier than Route53... particularly with the console
           | redesign.
        
           | jacurtis wrote:
           | I agree. I think their UI is actually a little too creative
           | at times. It has lots of whitespace and a single color and
           | that means people will say "clean", "minimal", "modern",
           | "artsy fartsy".
           | 
           | But I agree, that with something that coins itself "the
           | developer cloud" it should provide critical information
           | first. It is ok to kill some whitespace or put some
           | monospaced fonts in there. You aren't trying to sell me an
           | iPhone, I am trying to manage a server.
           | 
           | Route53 on AWS is what I have been using for domain
           | management and I like it because it doesn't mess around with
           | cute UIs. It is strictly function. Instead of form fields for
           | each TTL line and host line like other sites do, you just get
           | a big multi-line text box and you use spaces and line breaks
           | (gasp) to create your dns listings.
        
             | Closi wrote:
             | I actually like their UI - I think Azure or AWS looks
             | fairly scary to me, someone not _that_ familiar with cloud
             | architecture.
        
         | jandrese wrote:
         | 5. Their IPv6 support is pants on head.
         | 
         | https://www.digitalocean.com/docs/networking/ipv6/
         | 
         | Yes, you read that right, they assign a /124 if you enable
         | IPv6. There is no provision for getting anything larger. All
         | configuration is totally static as well. It's really incredible
         | how botched the setup is, and it has been like this for
         | _years_.
         | 
         | If you're wondering if you're sharing the same /64 with an
         | entire datacenter worth of droplets, the answer is of course.
        
           | hisyn wrote:
           | This -- this has me a bit frustrated and I'll eventually
           | email them about it.
           | 
           | I haven't contacted them about it but that makes sense sadly.
           | So they're getting a /64 from their upstream and just sharing
           | that out to everyone. This isn't IPv4, they need to make this
           | right.
           | 
           | Vultr, OTOH, gives each _HOST_ a  /64. I've been doing most
           | of my work on Vultr right now so I can use more than 16 IPs
           | on a single host. I was/am hoping that providers would
           | standardize somewhere in the middle: Every customer account
           | in each datacenter gets a /64. I wouldn't mind all of my
           | hosts having their own /64 to subdivide.
        
             | jandrese wrote:
             | The smallest allocation a customer should ever get with
             | IPv6 is a /64. You break a lot of stuff when you go
             | smaller. DigitalOcean's approach is kind of like sticking
             | an entire datacenter behind a single IPv4 address.
             | 
             | It's not like it is hard to get IPv6 address space either.
             | All they have to do is ask. A VPS provider like DO can get
             | a /32 easy peasy.
        
               | mnordhoff wrote:
               | DigitalOcean has /32s from ARIN and RIPE.
               | 
               | (And a /48 from APNIC???)
               | 
               | (Edit: And a /36, /40 and /48 from APNIC?)
        
         | wakatime wrote:
         | Nothing is perfect. We use DigitalOcean Droplets because
         | they're more bang-for-buck than AWS EC2 instances, especially
         | if you're doing a lot of disk IO. However, even though it's
         | more expensive we use AWS S3 instead of DigitalOcean Spaces
         | because it's faster, more reliable, and replicated
         | automatically. I wrote about these decisions recently here:
         | 
         | https://wakatime.com/blog/46-latency-of-digitalocean-spaces-...
        
         | invisiblea wrote:
         | I'm _really_ disappointed with the managed DB service. The "75
         | simultaneous connections per gigabyte of usable memory"
         | limitation means cost wise it's cheaper just to spin up a
         | 'real' database droplet.
        
           | coder543 wrote:
           | > means cost wise it's cheaper just to spin up a 'real'
           | database droplet.
           | 
           | This is the case for literally every managed database service
           | that I'm aware of.
           | 
           | You pay a premium for the managed aspect.
        
             | invisiblea wrote:
             | That's an entirely fair point, but frustrating that the
             | connection limits are not clearer in the docs.
        
               | coder543 wrote:
               | FWIW, if you're using 75+ connections, it's probably a
               | good idea to add some kind of Postgres proxy in the
               | middle like pgbouncer. Postgres doesn't handle lots of
               | connections well because each connection forks off its
               | own full OS process, and the performance can degrade
               | noticeably when you have too many connections to Postgres
               | as a result.
               | 
               | That's been my experience, at least.
        
               | fastball wrote:
               | And DO's hosted Postgres allows you to easily configure
               | pgbouncer.
        
           | fastball wrote:
           | I'm very happy with the managed DB service. A few gotchas,
           | but the service itself has been incredibly stable with 100%
           | uptime from what I can tell.
        
         | jiofih wrote:
         | Not being on the same level of feature parity with AWS/GCP can
         | be considered a feature. Not everyone wants to drown in service
         | orchestration and configs
        
         | tehbeard wrote:
         | I would add the DO API being all or nothing with permissions to
         | that list.
         | 
         | Not being able to give just DNS access to a script for updating
         | LE/ACME DNS challenges means it'd be a non-starter at work.
        
         | staticautomatic wrote:
         | They also have some of the best technical documentation on the
         | web.
        
           | tweetle_beetle wrote:
           | I'm sure their own documentation is good, but certainly early
           | on the tutorials always seemed to be a mess. Lots of similar
           | articles written by different people with different
           | structures and advice, without referencing other related
           | tutorials. There seemed to be very little in the way of
           | editorial control, but maybe that's better now. It was a
           | good, cheap content strategy for SEO, but not a genuinely
           | good resource.
        
             | dumbsecreport wrote:
             | Thats because a lot of it was lifted directly from the web.
             | They paid people a stupid price per article to either write
             | articles or copy paste documentation online while barely
             | vetting it, only taking it down when people took the time
             | to send in reports to staff. I'm sure things have improved
             | since then.
        
             | vinger wrote:
             | Having 5 people install slightly different varations of a
             | stack provided so much value it was and still is the best
             | resource when installing a new stack.
        
           | KingFelix wrote:
           | I agree, I had limited knowledge on a few things and was able
           | to get it all sorted with their guides. I think they offered
           | an exchange of credits for tutorials or something. My
           | favorite part of their guides, the drop downs to pick your
           | version. Google can give me results to a simple ubuntu
           | question that is ten years old, they had the option to pick
           | which version you were using to get you the correct guides.
           | Brilliant
        
           | skrtskrt wrote:
           | As I started learning how to spin up and manage Linux servers
           | and then deploy my own (unmanaged) k8s on them, half of my
           | bookmarks are DO documentation.
        
           | sitkack wrote:
           | I hold up this part of DO as one of the single best uses of
           | the amazing tech writers our industry has, under appreciated
           | and under paid, to punch way above their weight in a crowded
           | market.
           | 
           | Really really well done DO!
        
           | sjs382 wrote:
           | _This_ is a major reason that I became a customer and have
           | been for 8+ years.
        
           | 52-6F-62 wrote:
           | They really do. And it goes in tangents and details I
           | wouldn't have expected. Their support is great.
        
           | FlashBlaze wrote:
           | Couldn't agree more. I wanted to setup nginx and add users in
           | the sudo group and almost always their articles were the
           | first to appear.
        
           | bredren wrote:
           | Content growth done right.
        
           | sdfhbdf wrote:
           | Yep great SEO Strategy and raising Brand awarness. Win-win
           | for people searching. Find out about how to install nginx on
           | Ubuntu and then memorize that next time you need a VM you go
           | that blue website with great tutorials.
        
         | bithavoc wrote:
         | 5. You can't upload a custom image and assign a Floating IP to
         | the Droplet, one of the most basic of the functionality of any
         | cloud.
        
           | jakelazaroff wrote:
           | Just double-checked my DO console -- yes you can, I have a
           | droplet with both.
           | 
           | Edit: I'm wrong, see below.
        
             | bithavoc wrote:
             | Maybe we're talking about different things, docs here[0]
             | 
             | > You cannot assign a Floating IP to a Droplet created from
             | a custom image.
             | 
             | Edit: I wanted to double-check because this would make my
             | life so much easier, but no, I still can't use Floating IP
             | with Custom Images. I imported a FlatcarLinux image from a
             | URL and created a droplet; once the droplet launched, I
             | still see this:
             | 
             | > Floating IP: Disabled
             | 
             | > Public IPv6 Address: Not available with custom images.
             | 
             | [0]https://www.digitalocean.com/docs/images/custom-images/
        
               | jakelazaroff wrote:
               | Interesting -- checked again and what I'm using is
               | actually a snapshot. Not sure why that makes a
               | difference, sorry for the confusion.
        
               | dstick wrote:
               | I guess that would be a slightly laborous work around?
               | Install vanilla linux, configure as needed. Save
               | snapshot. Treat it as a custom image :)
        
               | bithavoc wrote:
               | Yeah, Snapshots work quite well, you can even transfer
               | them between accounts and copy them between regions in
               | the same account, but it's a "transfer" meant to be used
               | as a migration mechanism, not distribution.
        
         | MrSaints wrote:
         | Agree on all points (and definitely, a mostly happy customer
         | too).
         | 
         | (3) was the cause of numerous production incidents for us. We
         | had to contact support to have it scaled up, and sometimes
         | they'd take up to 3 working days to get back to us. Happily
         | paid more for AWS to get better support, and stability.
        
       | acremades wrote:
       | Here is the podcast episode where Ben and Moisey Uretsky share
       | how they built DigitalOcean. Worth a listen.
       | 
       | https://alejandrocremades.com/ben-and-moisey-uretsky-from-hu...
        
       | ArtWomb wrote:
       | Would be interesting to see App Platform growth numbers. Lot's of
       | competition: Heroku, Netlify, Fly.io, App Engine, Cloud Run, etc.
       | But they may have hit the sweet spot in terms of features and
       | pricing.
        
         | mauflows wrote:
         | The missing feature for me is more cache control. It's behind
         | cloudflare but not configurable. So you can't cache json for
         | instance
        
           | arcticfox wrote:
           | For me, the missing feature is ability to access private
           | networks.
           | 
           | (Noting here, for the DO product manager reviewing the
           | thread..!)
        
             | Tostino wrote:
             | Can you elaborate on this? Just wondering what you mean
             | because I have been using private networks and haven't
             | really run into many issues.
        
             | phildougherty wrote:
             | Aware of this pain. Feedback noted :)
        
       | dartf wrote:
       | I really want to love DO, but I just can't. 2 main pain points I
       | had from working with it for ~3 month:
       | 
       | 1. Spaces keys. There is no way to fine tune access rights.
       | Anyone with spaces key can access any space in the organization
       | and read/write to it. I trust people I work with, but there is
       | always room for a mistake, so even a small chance that someone
       | can accidentally nuke our production space makes me nervous.
       | 
       | 2. Something from yesterday: we use new DO apps to deploy a
       | static web app. Yesterday I started to get random 404s for some
       | of the assets, so app become unusable. My colleague in Argentina
       | had same issues, but for different assets. We are lucky that it
       | was a staging app, but imagine it was a production app and that
       | would happen over the weekend? How do you even detect that? Run
       | uptime monitor form dozen different locations?
        
       | pjfin123 wrote:
       | Please add GPUs! Google cloud and AWS's interfaces are hard to
       | use. I recently discovered vast.ai which is great but cheap DO
       | GPUs would be more trusted/professional (even if they only had
       | one option).
        
         | trsohmers wrote:
         | (Shameless self promotion): Check out Lambda's GPU cloud:
         | https://lambdalabs.com/service/gpu-cloud
        
           | lvs wrote:
           | Are you planning to have an option that is CPU heavy with
           | 1xGPU for CPU-bound loads? Like a g4ad, g4dn type of
           | configuration?
        
       | czbond wrote:
       | DOCN. Anyone know the date?
        
         | dizzydot wrote:
         | Only official word I can find is Q4 2020 or Q1 2021.
         | So....soon?
        
       | Jamieee wrote:
       | I used Nanobox quite heavily before DO bought them.
       | 
       | But was a bit surprised when I saw the below, does this mean that
       | they only payed $3,544 for the company? Or is there more to it
       | than that?
       | 
       | > On April 4, 2019, the Company acquired 100% of the outstanding
       | equity of Nanobox, Inc., a Delaware corporation ("Nanobox"), a
       | deployment and management platform provider for cloud
       | infrastructure. The final purchase price for Nanobox was $3,544
       | and the acquisition has been accounted for as a business
       | combination.
        
         | iav wrote:
         | It's in thousands - $3.5mm
        
         | [deleted]
        
         | [deleted]
        
       | croh wrote:
       | Big fan of DO from start. Intutive UI, cheap resources, never had
       | issue with infra. And great knowledge base. But the fact I loved
       | most is a straight billing. There are never surprises at end of
       | month.
       | 
       | Sadly all mistakes done by AWS are picked up by other big vendors
       | like GCP,Azure. Cloud vendors are more focused on adding as many
       | features as possible. Who cares about user experience ? We got
       | covered by certifications.
        
       | Graffur wrote:
       | There's already a lot of positive comments in here but I'll throw
       | in another one. Tried DO out recently and I like how it set up.
       | 
       | I feel like the biggest competition is specific, tailored
       | services from the bigger players - Amazon Lightsail for example.
        
         | sofixa wrote:
         | > I feel like the biggest competition is specific, tailored
         | services from the bigger players - Amazon Lightsail for
         | example.
         | 
         | Nope, the biggest competition is in the same niche - Linode,
         | OVH, Scaleway.
        
           | Graffur wrote:
           | Is that what you think?
        
         | tyingq wrote:
         | I agree generally, but Lightsail is just obvious hot garbage.
         | The CPU throttling is crazy aggressive, and you'll see it after
         | 30 minutes of use, for all but the 2 most expensive of the 7
         | total plans.
         | 
         | I don't see how they could be maintaining a decent customer
         | base with that setup, but I guess marketing is powerful.
        
           | sombremesa wrote:
           | I use Lightsail mostly to dodge Route 53 fees, since it comes
           | with DNS management and I have a lot of hosted zones. However
           | I'm also not a business and couldn't care less about the CPU
           | throttling.
        
             | tyingq wrote:
             | That's interesting. I wonder if anyone has made some sort
             | of api shim/facade to automate that route 53 avoidance.
        
       | nickjj wrote:
       | I've been using DO for around 6-7 years now. Really happy with
       | the services overall. I hope nothing changes after IPO'ing.
       | 
       | The only complaint I have with them is DO Spaces. This service
       | seems to have issues related to degraded quality pretty often and
       | there's so many horror stories of load times taking hundreds of
       | milliseconds to serve content from their CDN if you Google around
       | for folks using Spaces. I'm looking forward to the day where
       | Spaces is as good as S3 because DO's offering of Spaces includes
       | not only an object store but a free CDN on top. Seems like a good
       | deal for $5 bucks a month if it were dependable.
       | 
       | It's weird because every other service I use by DO has been top
       | notch.
        
         | wakatime wrote:
         | Yep, same experience with Spaces here. That's why we use Spaces
         | for backups only, since it's very affordable and backups don't
         | need millisecond latency.
         | 
         | https://wakatime.com/blog/46-latency-of-digitalocean-spaces-...
        
       | simonebrunozzi wrote:
       | Should I disclose this? Well, why not?
       | 
       | I interviewed at DO a few years ago. I don't want to share the
       | details, but it was the most annoying, unprofessional and
       | disorganized set of interviews that I have ever witnessed in my
       | life (I did ~140-150 interviews in my life for ~25 companies).
       | The best part is that I was introduced to the company by one of
       | their board members.
       | 
       | Since then I kept thinking that I really liked the product, but I
       | would expect them to fail as a company.
       | 
       | Maybe DO's IPO proves that I was wrong, or maybe that they will
       | be economically successful despite what I have witnessed.
        
         | ianlevesque wrote:
         | Disclose what? There's no actionable details there.
        
         | vinay_ys wrote:
         | Was it just that they didn't have the usual setup of
         | recruiters, coordinators etc to manage the hiring loop well?
         | 
         | If they are less than 300 people company grown over a very slow
         | pace, that's understandable.
        
       | neom wrote:
       | Interestingly it was very clear at around $10MM ARR that DO was
       | on a trajectory to IPO. You can thank Moisey Uretsky for a
       | fantastic product idea and his brother Ben for CEOing it for so
       | long. Congratulations to everyone who was involved in building
       | DigitalOcean, it was an INCREDIBLY wild ride in the early days,
       | lots of chaos but through all the chaos and disfunction, I think
       | everyone involved knew this day would come.
       | 
       | Personally I'm really proud of the work we did, and I'm overjoyed
       | to have been part of building a business that is going to be a
       | public company. Thanks to the HN community for being so
       | supportive over the years.
        
         | yte14 wrote:
         | The thesis of DigitalOcean was literally "this _very_
         | established market needs a venture capital growth play because
         | we saw Slicehost exit to Rackspace". In the beginning the
         | entirety of DO's offering, tech for tech, was almost a direct
         | lift of Linode and, as they scaled, made all the same technical
         | mistakes and learning experiences that Linode did.
         | 
         | I guess you could call that a fantastic product idea. I'd call
         | it applying an aggressive exit strategy to Chris Aker's
         | fantastic product idea from 2003 and further commoditizing said
         | product in its wake.
        
           | brightball wrote:
           | As a happy Slicehost customer, I definitely saw Slicehost in
           | every aspect of the DO approach.
        
             | benatkin wrote:
             | Some are saying that about Linode and I just don't get it.
             | 
             | Loved Slicehost!!!
        
           | MPSimmons wrote:
           | Their approach to making VPS/Cloud offerings simple and
           | approachable are really what set them apart, in my mind. I
           | run all of my simple things there, because sometimes I don't
           | want or need the complexity that actually managing things in
           | Azure, GCloud, or AWS require.
        
           | tyingq wrote:
           | I always wondered if they would eventually make a deliberate
           | attempt to take over the _" shared Cpanel hosting"_ market
           | with a non-shared-host, non-cpanel model. It seems ripe for
           | change...lots of little players.
        
             | neom wrote:
             | The market was considerably too small and it would mean
             | building to much towards the past. The thesis of "millions
             | of *new* developers are coming online over the next 20
             | years" was the main north star.
        
               | tyingq wrote:
               | It is small compared to cloud, but it's a ~$22 billion /
               | year market. Compare to IaaS at ~$50b. So it's not tiny,
               | but it is highly fragmented.
               | 
               | And I think the solution could be layered on top of what
               | they already have. Cpanel is just a bunch of buttons,
               | icons, and little apps to create web server instances and
               | tie them to domains, database instances, backups, web
               | file management, manage DNS records, and so on. Basically
               | just a consistent web app to put on top of their
               | "droplet" ecosystem. Much of it already exists, so a fair
               | amount of the effort would just be marketing it.
        
               | neom wrote:
               | We were too busy building in the wake of AWS. Looking
               | forward and building into the paradigm shift was the
               | strategy (and it seemed to work!). :)
        
               | tyingq wrote:
               | Makes sense, though paradoxically, that market is growing
               | by around 10% per year.
        
           | unilynx wrote:
           | This doesn't sound right. I know we evaluated linode vs do in
           | 2016, and dropped linode because of lack of volume support.
           | Digitalocean had that, even if only in FRA1, but it surely
           | was ahead of linode back then
           | 
           | (Not sure if block storage came even earlier to other DO data
           | centers, but as those were outside the EU they wouldn't have
           | been relevant)
        
           | grey-area wrote:
           | As a user of both services for years, the only point on which
           | they are similar was/is that they both offer shared cheap VMs
           | (as do lots of other services).
           | 
           | Presenting early DO as a ripoff of linode is frankly absurd,
           | the UI, user experience, API, Load balancing, backups, and
           | docs were all vastly superior to Linode, and it honestly felt
           | like the copying was more the other way round as Linode tried
           | to catch up with their UI.
        
             | jjav wrote:
             | I'm puzzled by the praises on DO UI, since in the early
             | days in particular I always found it intolerably terrible.
             | Far less useful than Linode UI. Nowadays it's ok, but
             | Linode is still has better UI.
        
           | neom wrote:
           | Actually, Ben and Moisey owned a managed hosting company that
           | was coming under a lot of pressure from rackspace.
           | DigitalOcean as a product was a direct response to that
           | market pressure. I think if you ask any of the early
           | executives, none of us loooovveed the venture component, it
           | was a way to grow the business that was already growing
           | rapidly with strong product market fit. Remember, a16z only
           | invested once we were doing millions and millions in ARR. In
           | terms of Linode, I have no idea what you're talking about.
           | DigitalOcean had 1 click $5 SSD offerings years before
           | linode/anyone else made any changes to their business.
        
             | CerealFounder wrote:
             | The real story is Ben and Moisey were running one of the
             | largest hosting co's in porn and then there was a security
             | problem via one of their upstream providers and it created
             | a DISASTER. Thats how DO was born from what I understand.
        
             | bombcar wrote:
             | Which is amusing because Rackspace is now overpriced
             | garbage as far as I can tell, or a wrapper around public
             | cloud.
        
               | codegeek wrote:
               | I have dealt with Rackspace exact 2 times and both times,
               | it has been a horrendous experience.
        
             | yte14 wrote:
             | I remember Linode being hesitant to dip below $20 because
             | the thinking was that it would diminish the quality of
             | support. That thinking was reinforced when you started with
             | $10 (if I recall, it's been nearly a decade) and we started
             | getting large numbers of refugees burned by experiences
             | with your support organization. Neighboring comments tell
             | me it's still a problem. We consciously didn't want to grow
             | $5 fast because we didn't have capital to throw at any
             | problem that developed. We, the market, not just Linode,
             | also knew competing to the bottom on price largely
             | relegated shared/cpanel/etc hosting to $0.99 commodity
             | status and we weren't keen to kick off such a war for
             | obvious reasons. (That was quite prescient, looking back
             | from outside in 2021.)
             | 
             | Anyway, yes, you eventually reached a position where you
             | dictated the pricing structure, slightly annoyingly because
             | it was a product that looked remarkably similar to ours
             | (down to the incentivized Linode Library clone that's
             | getting praise elsewhere in this thread). I wasn't talking
             | about changes you forced. The entire product top to bottom
             | was referenced against Linode's work to grow you to a
             | position to force those changes. Sorry if I wasn't clear.
             | I'm also not going after you for it; I'm only responding to
             | fantastic product idea.
             | 
             | It's just odd that when competitors would ask me my
             | thoughts on the "Linode clone" at 2011-era conferences
             | that's something that's news to you. Is that really not
             | apparent to an executive? If not that you did so, at least
             | that seemingly the entire incumbency, not just Linode,
             | thought so?
        
               | thaumaturgy wrote:
               | I've been a customer of both for years -- in Linode's
               | case, since 2009. Your comments are coming across like
               | sour grapes, so I think this is a good opportunity to
               | hear about some of Linode's mistakes from a longtime
               | Linode customer.
               | 
               | First, you guys had the customer support interface
               | compromise in 2013, and the worst part about that was the
               | way that it was handled by your organization. Linode
               | wouldn't own up to the compromise initially, dragged
               | their feet on announcing anything about it, and then
               | tried to downplay it.
               | 
               | Then there was another similar incident in 2016, and,
               | amazingly, the response from Linode was nearly identical
               | to 2013. No lessons learned. After that, I started seeing
               | influential people on HN say things like, "don't use
               | Linode". I stayed on Linode, but I also started using
               | DigitalOcean after the 2013 compromise and split my
               | hosted services evenly between the two of you after 2016.
               | 
               | DigitalOcean aggressively iterated multiple aspects of
               | their products in that time period. They announced block
               | storage in 2016. Your customers immediately started
               | asking when Linode would come out with a competing
               | service, and that didn't happen until 2018. Here, it was
               | Linode rushing to build a DigitalOcean feature.
               | 
               | Linode initially focused on expanding RAM and disk space
               | for your customers' instances at the same price points.
               | Every year, you'd announce, "hey, we're doubling your
               | RAM!" or some such thing. It was awesome, but I also
               | thought at the time that you were shooting yourselves in
               | the foot. How many customers looked at that and went,
               | "yep, cool, now I can downsize my Linode and give them
               | less money each month"? I know I did, at least a couple
               | of times.
               | 
               | Then, you chose to try to compete with DigitalOcean on
               | price. As a long time Linode customer, I _never_ wanted
               | that. If I want a $5 VPS, I 'll just go to DigitalOcean.
               | Hell, you shouldn't even want me as a customer for $5.
               | Let them deal with me instead. I wanted Linode to be the
               | larger, slightly more expensive provider with the even
               | better support.
               | 
               | I've had to deal with Linode support a few times over the
               | years. They've mostly been awesome and first class. I've
               | never been unhappy enough with Linode to want to leave
               | altogether. Both of you should be focused on eating AWS,
               | not each other; showing up to a competitor's HN thread to
               | complain about them being copycats is really poor form.
        
               | ObsoleteNerd wrote:
               | This just nailed just about everything I was going to
               | say. I've used and liked both since both started and this
               | entire thread is pretty embarrassing.
        
               | stanmancan wrote:
               | I was a huge Linode fan for years. I used them
               | exclusively. DO showed up and slowly but surely started
               | being the better deal. Lower entry points, better specs,
               | and then finally a more robust product line. I slowly
               | found myself going to DO for new servers and eventually
               | moved everything there for simplicities sake.
               | 
               | Linode still has a special place in my heart, but they
               | have some work to do if they want to remain competitive.
        
               | jamroom wrote:
               | Wow - really? I use both Linode and DO extensively and
               | Linode is better on almost all fronts in my experience.
               | Faster servers, better network, Linode's Object Storage
               | is way better than DO's "spaces" and Linode's support is
               | hands down the better of the two. If you're going to
               | spend $5 on a server why would you go with DO unless
               | you're already there?
        
               | maximus024 wrote:
               | > If you're going to spend $5 on a server why would you
               | go with DO unless you're already there?
               | 
               | I would go with anyone other than Linode, considering
               | they left the control plane running a publicly accessible
               | unpatched version of ColdFusion, which led to multiple
               | instances of them losing control of customer's data.
               | 
               | Anyone but Linode.
        
               | jamroom wrote:
               | Yeah I know about that incident - but also believe
               | companies have the ability to learn from past mistakes
               | and do better.
        
               | maximus024 wrote:
               | Unfortunately it wasn't a single incident.. fool me
               | once..
        
               | jjav wrote:
               | I mean that was terrible, but I know full well that every
               | company ever will have dumb vulnerabilities occasionally,
               | so by that metric I could never use anyone.
        
               | stanmancan wrote:
               | Linodes support is great; I can't say much about DO
               | because I haven't had to use them.
               | 
               | Around the time I switched there was a lot going on. DO
               | had released their $5 droplets. Linode was still stuck on
               | their old, clunky UI, and the migration to the new "Cloud
               | UI" wasn't executed well. Then there was a few DDOS
               | attacks that took stuff down, and the multiple serious
               | security vulnerabilities that they did a -horrible- job
               | managing.
               | 
               | I've been at DO for a number of years now and it's been
               | solid. I have a few dozen servers and take advantage of a
               | few of their services. Their Managed Databases are
               | incredibly well executed.
               | 
               | I've been happy over all so no reason to look elsewhere.
        
               | jjav wrote:
               | Same here, I use both but prefer Linode in every aspect.
               | Much better support and reliability in particular.
               | 
               | I moved a few very low-end hosts to DO when the $5 price
               | point appeared but have never been overly impressed.
               | Later Linode matched prices so no real reason to look
               | into DO anymore.
               | 
               | But I do still use both. Partly to avoid migrating the DO
               | hosts I have but more because I just like to keep aware
               | of how both are evolving.
        
               | vinger wrote:
               | Last time I provision on linode and do at the same time a
               | created a ubuntu box. I found I had to setup a few
               | additional things in linode. Linode never felt as
               | polished which is fine.
               | 
               | The one thing that made do better was they had a
               | datacenter in my region.
               | 
               | No one mentioned vultr killer $2.50 which is where I
               | would go if I wanted a dev box to play around on.
        
               | smarx007 wrote:
               | I remember something being off in Vultr $2.50 offer which
               | made me stop halfway during sign-up. Had to go to
               | https://www.vultr.com/products/cloud-compute/ again to
               | remind myself: $2.50 VPS does not come with an IPv4
               | address. At least today they openly mark it and I think 5
               | years ago you'd only find it after a few clicks.
        
               | fastball wrote:
               | You might be experiencing a form of survivorship bias /
               | confirmation bias here.
               | 
               | If you work at Linode, presumably people would come up to
               | _you_ asking about something they then couched _to you_
               | as a Linode clone. That doesn 't mean it's how people
               | were talking about DO when not directly speaking with
               | someone at Linode.
        
               | fourstar wrote:
               | Lol. Typical HN midwit reply.
               | 
               | Edit: lol at the child poster to this who told me to "go
               | back to my hole" before editing it with the HR-approved
               | reply. Didn't want to risk any precious karma eh?
               | 
               | And yes you're right that this is "the wrong forum" --
               | all the real hackers left HN years before you joined.
        
               | jiofih wrote:
               | You seem to be in the wrong forum - personal attacks are
               | not welcome here.
        
               | yte14 wrote:
               | I don't understand how that impacts my point at all. If
               | an opinion is only held in one context it's not actually
               | held? Is that what you're saying? I'm sorry, I don't
               | follow.
               | 
               | Before DO VPS was (and somewhat remains) a community even
               | among competition. I'm not basing what I'm saying solely
               | on the example given.
        
               | derefr wrote:
               | Perhaps it wasn't their own mental model of the landscape
               | at all, but just what they considered to be the most
               | expedient way of getting the message across in terms
               | customers would understand.
               | 
               | Hypothetical analogy: if I were describing my very-first-
               | ever PaaS service, to competitors who'd only ever heard
               | of IaaS services -- and this wasn't the _point_ of the
               | conversation (i.e. I wasn't trying to sell them on the
               | benefits of PaaS), but rather just a supporting statement
               | to talking about how we do /don't offer an IaaS feature,
               | because we're a PaaS -- then I'd probably describe my
               | PaaS by analogy to some popular IaaS that has a feature-
               | set closest to a PaaS.
               | 
               | In my own mental model, _I_ have a separate node for
               | "PaaS"; but if I know that the people I'm communicating
               | with _don't_ -- and teaching them what a PaaS is would
               | take time away from the real topic we're trying to focus
               | on -- then I'm going to describe my PaaS provider as
               | "basically like $foo IaaS provider" when talking about
               | how it has the same feature X. To them.
        
               | yte14 wrote:
               | Again, I'm not basing what I'm saying solely on the
               | conference _example_. I'm not arguing over the psychology
               | of multiple conference conversations from ten years ago
               | any further because it's completely immaterial to my
               | point (and one example of many; the point of the example
               | was that it was openly discussed among competition, not
               | "let's go to the mat on what constitutes an actual
               | opinion with the assumption that I don't perceive
               | conversation appropriately").
        
               | Closi wrote:
               | Have you ever watched Kitchen Nightmares? Bad chef's are
               | often surprised to get told their food tastes bad because
               | everyone always tells them how good their food is!
               | 
               | If you know someone is from a particular company, you
               | don't badmouth the company in front of them, but you
               | might badmouth the competitors.
        
               | fastball wrote:
               | Your point makes sweeping claims that "the entire
               | incumbency" thought of DO as a Linode clone.
               | 
               | Can I see your survey results from 10 years ago, or is
               | this an opinion formed by a Linode employee from a
               | handful of conference conversations?
        
               | webmobdev wrote:
               | As a user, I agree - DO was seen a cheaper clone of
               | Linode / Slicehost when they launched. I used to usually
               | recommend Pair and Linode to my clients and, later DO to
               | my more cost-conscious clients. At that time, I preferred
               | Linode over DO, because the support was better and the
               | prevalent practice than was to look suspiciously at new
               | hosts because a lot of them folded up. You looked to
               | older hosts, like Pair (and later Rackspace and Linode)
               | because you knew they were reliable in both tech and the
               | hosting business.
        
               | temp667 wrote:
               | I loved pair! Never followed what happened to them!
        
               | jiofih wrote:
               | He is saying that your perspective as a Linode employee
               | might not represent how others saw Digital Ocean at the
               | time. Which for me is glaringly obvious from your
               | comments.
               | 
               | EDIT: s/general public/others
        
               | hobs wrote:
               | Well a non-DO employee (and someone who ran things on
               | linode and then on DO) I would say its a fair read and
               | what the mindshare at the time was.
               | 
               | Linode had decent service but honestly the irc channel
               | was pretty toxic to noobs (one of the reasons I left!)
               | and finding a "cheaper linode option" was great.
               | 
               | That might have switched quickly, but it was definitely a
               | thing.
        
               | [deleted]
        
               | yte14 wrote:
               | I wasn't talking about the general public. I was talking
               | about the incumbents. I said competitors, not customers,
               | and that wasn't a corrected typo.
               | 
               | Edit: I responded to something that's now been silently
               | edited out and replaced with "others".
        
               | random5634 wrote:
               | I've noticed that the folks who aren't so attentive to
               | product / market fit and other items (customer ergonomics
               | maybe?) tend not to really see what they are missing,
               | what's different about the "other" guy that means they
               | are in some ways cleaning up. I wonder if that describes
               | linode a bit.
               | 
               | Security:
               | 
               | One issue early on for Linode was just abysmal security
               | despite claims. Lots of denial and lack of transparency
               | too which was even worse. For a biz focused offering that
               | was just a no go.
               | 
               | Even 8 year ago there was stuff with the bitcoin hacks?
               | Do folks remember any of this?
               | 
               | They might have been using cold fusion or something
               | because they got hacked again I think just like a year
               | later?
               | 
               | These weren't just little corner case hacks / issues -
               | but major with plenty of denial and obfuscation from
               | linode.
               | 
               | There was this hack here:
               | https://news.ycombinator.com/item?id=10845170
               | 
               | I'm sure I'm missing others (unsecured mysql databases
               | etc?).
               | 
               | ---
               | 
               | Anyways, at least in my world linode was actually seen as
               | the cheap/crappy offering even though they actually cost
               | more which was weird. But I def told folks to stay away
               | just because of the repeated lack of care around
               | security.
               | 
               | I had no idea DO was at 350M+ ARR - nice job by them -
               | wow!
        
               | jiofih wrote:
               | I guess you may think of that in the same way the
               | incumbents considered Amazon "another e-commerce play" or
               | Google as "another search engine" while being blind to
               | the real changes happening underneath.
        
               | havelhovel wrote:
               | Whether your claim is true or not, there's more to a
               | product than the underlying technology. Frankly, this
               | line of discussion reads as sour grapes and reflects
               | poorly on the Linode team.
        
               | wastedhours wrote:
               | > more to a product than the underlying technology
               | 
               | Back when I was just hacking about on some SaaS ideas I
               | looked into both Linode and DO. The positioning of both
               | seemed quite separate to me, and DO "felt" more like the
               | product I should be using.
               | 
               | Whether or not the tech was different, or that feeling
               | was justified by anything other than an initial veneer is
               | well up for debate - but entirely agree, they're discreet
               | products, and this doesn't really reflect well on Linode.
        
               | webmobdev wrote:
               | I don't think it reflects poorly on them at all. When DO
               | started everyone still used the help document of Linode
               | and Slicehost to setup and spin a server on DO. They
               | could do that because DO was a clone of these services.
               | To their credit DO improved and grew, and that's no mean
               | feat.
        
               | ksec wrote:
               | Yes. For those of us that actually went through the
               | Slicehost, Linode era, the time when paying per month and
               | not per hour for a simple VPS before everything was
               | rolled into the word _Cloud_. Those comment read more
               | like an accurate account of history while others read it
               | as an attack of a company.
        
               | jiofih wrote:
               | > it was a product that looked remarkably similar to ours
               | 
               | As a developer, DO never looked anything like it. Linode
               | was expensive and on the same playfield as Rackspace and
               | a ton of other cloud hosts, very different from the
               | instantly-spin-up-a-tiny-vm-for-five-bucks model. Their
               | web UI also has always been miles ahead.
               | 
               | The competition also didn't have SSD as an option until
               | much later, and that was a HUGE selling point for digital
               | ocean at the time.
        
               | shiftpgdn wrote:
               | Lol, what? DO was basically a page for page copy of
               | linode's site and product offering in 2011-2013.
        
               | 1shooner wrote:
               | I remember at that time feeling almost bad for Linode
               | because they had built up so much valuable educational
               | content about what you could run on their services, and I
               | was using it step-by-step on DO. The only differentiator
               | was the price. Of course DO quickly replicated and
               | excelled in providing that tutorial value as well.
        
               | kchr wrote:
               | But were they really doing anything other than
               | copy/pasting HOWTOs by Falko Timme?
        
               | disgrunt wrote:
               | They were both modeled after services like Slicehost I
               | believe.
        
               | yte15 wrote:
               | Negative. Slicehost launched in the middle of Linode
               | pivoting virtualization stacks after proving out the
               | business and running into limitations of their first
               | stack (UML). Slicehost was ... 2006, if memory serves?
               | Linode was a few years old by that point. For those
               | keeping score, Linode then went to Xen and now KVM just
               | like everyone else.
               | 
               | Linode and Slicehost were very similar stories, though.
               | Slicehost bootstrapped as well and was run by good
               | people.
        
               | neom wrote:
               | You do know that Jason Seats, the founder of Slicehost,
               | was pivotal in the DigitalOcean story also?
        
               | yte15 wrote:
               | Yes. What's your point?
        
               | z92 wrote:
               | Right! Linode was $20/month at least and more focused to
               | businesses. Not the then unbelievable $5/month for SSH
               | ssh accessible virtual box with root access that DO
               | started. Plus the SSD. Other hosting providers later
               | caught on with DO.
               | 
               | But the thing I liked best was their "no hidden cost".
               | You pay what you agreed before to pay. No surprise. No
               | upsell, trick sell which were common with all hosting at
               | that time.
               | 
               | DO still maintains that honesty. Not sure what will
               | happen after their IPO.
        
               | lloeki wrote:
               | > As a developer, DO never looked anything like it.
               | 
               | The UI, the simplicity, SSDs, additional block storage...
               | but also the API and its doc, as well as IPv6, regions,
               | snapshots/backups, and availability. Later on, load
               | balancers, object storage and k8s. All of that much
               | simpler than AWS and both better thought out and more
               | featureful than Linode or OVH.
               | 
               | DO truly deserved their success.
        
               | ksec wrote:
               | DO definitely had UI, SSD first. But Block Storage,
               | Regions, Snapshots Backup and Load Balancer all were
               | either first on Linode or being worked on for a long
               | time. Linode also had Pooled Transfer and other tidbit
               | for a long time well before DO.
               | 
               | Remember we are talking about early days of DO. Of course
               | later DO innovate more and Linode had to follow. And the
               | new Linode UI is arguably better than DO. Although it did
               | took them _years_ to make it. The beauty of competition.
        
               | tasogare wrote:
               | I'm customer for years and I don't use any of the
               | features you mentioned past the first two; I'm part of
               | the 5$ VM crowd for who this is the killer feature.
               | Should OVH have provided on-demand instead of yearly
               | plans for VPS I would have stayed there as I've my
               | domains there already.
        
               | viro wrote:
               | The simper than AWS aspect was one of the main reasons I
               | choose DO to do most of my cloud stuff. Also AWS had this
               | odd habit of not auto charging me so it would go a couple
               | months then I would get hit with multiple months worth of
               | a bill.
        
               | riffic wrote:
               | The API is a key point many people miss when they think
               | of early DigitalOcean as just another VPS host.
        
               | jjav wrote:
               | > Their web UI also has always been miles ahead.
               | 
               | I'd strongly disagree (been on DO since about 2012 and on
               | Linode a few years earlier; I still use both). DO UI is
               | ok these days but years ago Linode UI was far better in
               | every way.
        
               | jcampbell1 wrote:
               | As an original Slicehost customer, and long time Digital
               | Ocean and Linode customer, your version of history is
               | bullshit. I was looking to move from Rackspace after the
               | Slicehost aquisition. Moved to Digital Ocean because of
               | the SSD offering. It performed wonderfully. Needed bigger
               | servers, and Linode had just created an offering
               | competitive with Digital Ocean. I signed up and ran some
               | benchmarks and Linode was about 25% faster than DO. I
               | moved everything to Linode and the company has been there
               | ever since. For what it is worth, my Linode bill is
               | currently about $2000, and DO is $40. I am calling you
               | out as a loyal Linode customer who thinks Linode is
               | great.
        
           | aantix wrote:
           | "An aggressive exit strategy" when they started in "2003"?
           | 
           | Aggressive, as in two turtles fighting.
        
             | yte15 wrote:
             | Linode was founded in 2003, not DigitalOcean.
        
           | jacques_chester wrote:
           | I was on Linode for a while and moved to DigitalOcean. At the
           | time it was a very simple calculus.
           | 
           | DigitalOcean was less established, less mature, offered fewer
           | CPUs and less RAM per dollar and had only two (or was it
           | three?) locations.
           | 
           | But they had SSDs and Linode did not.
           | 
           | The difference in Wordpress performance was night and day. So
           | I switched and I'm still there. Linode dragged its feet on
           | SSDs. I don't care why or how. I cared that I could get what
           | I needed elsewhere.
        
             | ryandrake wrote:
             | What's the difference like today? As a long time Linode
             | customer, I just never even felt the need to shop around.
             | Maybe I should! It's always been just fine for my "tiny
             | duty" Wordpress host. I always knew DO existed, but figured
             | it's the same $5 and I'm probably getting about the same
             | thing so why bother switching. I guess I'm a good example
             | of why stickiness matters.
        
               | jacurtis wrote:
               | Today the pricing and services are essentially matched.
               | Someone will obviously fight be on this statement, but I
               | think today they are essentially equal from a cost
               | perspective. They all run SSDs and have similar cost per
               | RAM/CPU core.
               | 
               | But as others have said, Linode was around forever.
               | Digital Ocean came in and disrupted them. When DO first
               | came on the scene then you easily could have switched and
               | got more for your money. But Linode has caught up and
               | matched them. Right now they are both good. I have
               | actually been favoring Linode lately with their new
               | interface. But I have $3,000 or so of Digital Ocean
               | credit that I am trying to use up first.
        
         | tgtweak wrote:
         | I'm really happy to see Ben and Moisey get this far. They are
         | both extremely competent sysadmins and system architects too.
         | 
         | They retained a lot of equity as well - good to see.
        
           | sneak wrote:
           | My experience is that not only did they start out as
           | incompetent, they actively downplayed early security issues
           | and outright lied about certain aspects of their products.
           | 
           | I found major, glaring security/architecture issues with
           | their main product early on, and was told by DO staff to go
           | full-disclosure because it was working as designed. When I
           | did so, DO lied about the impact on their blog.
           | 
           | Those lies are still up:
           | 
           | https://www.digitalocean.com/blog/transparency-regarding-
           | dat...
           | 
           | > _At no time was customer data "leaked" between accounts._
           | 
           | (I have screenshots of other DO customers' data.)
           | 
           | https://news.ycombinator.com/item?id=6983097
           | 
           | Even their outage blog post from a few months ago is now
           | deleted.
           | 
           | My experience is that DO is a shady company, and I'll not do
           | any serious/critical business with them or ever use them to
           | store secret information.
           | 
           | As for the lying, I'd personally never do business with any
           | of the early DO management/founders.
           | 
           | There's no amount of money that can be used to buy a
           | reputation for integrity.
        
             | yte15 wrote:
             | Your issue was exactly, and I mean exactly, what I had in
             | mind when I said "learning experiences" upthread. I
             | followed it closely. Linode painfully learned the scrubbing
             | lesson as well - and DO was in a worse position to learn it
             | at the time, being forced to throw the scrub write load at
             | SSDs that don't like that type of load. That's the real
             | issue, honestly, that they probably started noticing SMART
             | warnings from scrubbing by default on SSDs (particularly
             | for cheap instances that turn over often), and took the
             | venture capital approach of taping over it to make the next
             | round by making it opt in.
             | 
             | It's a tough problem to deal with and not something you're
             | likely to think of designing such a product from first
             | principles. That's not an indictment, it's just fundamental
             | to experience gained doing this stuff (and it's perilous to
             | get wrong). Filtering unsolicited ARP to prevent domUs from
             | hijacking default gateways was another lesson in blood, and
             | one of the first things we tried within five minutes when
             | we did competitive on DO around launch time (they hadn't
             | thought of it; it worked).
        
               | sneak wrote:
               | It's not tough to solve.
               | 
               | The whole scrub thing was a red herring: you don't need
               | to scrub anything to not leak data, you just thin
               | provision. It's (mostly) fine if customer data stays on
               | your disks after they delete. It's not fine to give it to
               | the next customer because you don't know how disk
               | abstraction works.
               | 
               | My issue is mainly how they coped with it, which has
               | nothing to do with their (at the time) technical
               | incompetence: they simply lied about the effects.
               | 
               | Competent or not, lying on your corporate blog isn't a
               | good choice. It doesn't take any special skills or
               | training to be honest on your journey from incompetence
               | to competence, all it takes is integrity.
        
               | yte15 wrote:
               | Yeah. Agreed. I unfairly walked back solve to "deal with"
               | on you simply from knowing the considerations that go
               | into bursts of write load every time a customer clicks
               | "delete".
               | 
               | At the time Linode had a host-side scrub daemon that
               | simply ate LVs as customers deleted. It's technically
               | simple, but drive longevity and capacity on the host (the
               | user is probably recreating their VM, for example) is
               | where it gets tricky. External considerations. In the end
               | scrubbing is basically killing a few dozen inodes of user
               | data, but the architecture in VPS usually requires you to
               | nuke the whole image, including what is ultimately the
               | host's 59th copy of Ubuntu. Just managing the iops
               | without annoying neighboring customers is a challenge.
               | 
               | To my cloning point I made at the top of the thread,
               | Linode was certainly no stranger to the reality
               | distortion field when it suited, and I think that's yet
               | another thing DO copied. That vertical is closer to B2C
               | since you're usually dealing with individuals, not sales
               | teams, and glossing over stuff is a bit easier than when
               | your counterparty has a better engineering team than you.
        
             | joering2 wrote:
             | I second that. Over last 6 years I happened to login and
             | see other people dashboard a few times. First time it
             | happened hair raised up on my arms thinking someone else
             | can see my stuff. I simply logout and logged back in. I
             | never manage to delete or do any reckless stuff with other
             | people servers. But I feel what the OP was going thru.
        
           | TechBro8615 wrote:
           | Between the two of them, they own less than 20% of the
           | company. Is this a lot? Not in my opinion. They sold 80% of
           | their company.
        
             | Tostino wrote:
             | It's a pretty big pie that got baked, that <20% is quite a
             | lot in the scheme of things.
        
             | jkaplowitz wrote:
             | Compared to how much most VC-fueled founders would own at
             | IPO stage, sounds like a lot to me.
        
             | tgtweak wrote:
             | They are also in the holding co
        
           | [deleted]
        
         | nodesocket wrote:
         | As somebody who followed SliceHost (Jason Seats and Matt
         | Tanase) the predecessor to DigitalOcean, I 100% knew that
         | DigitalOcean was on a trajectory to exit/IPO and be huge early
         | on. Bravo, and congratulations to the entire team.
         | 
         | I was also building a startup piggybacking on hosting providers
         | around 2012 and 2013 and saw the explosive growth. DigitalOcean
         | should be the go-to case study on how to build a developer
         | oriented company. Just like SliceHost and PickledOnion before;
         | the technical guides on setting up LAMP stacks, Wordpress,
         | NGINX, Node.js become resources just as important as
         | Stackoverflow and Serverfault. DO showed up first in Google
         | search results for technical questions.
        
         | kevinoconnor7 wrote:
         | I remember interviewing with DO back in late 2014 and it was
         | nuts! The entire interview process took ~3 months and it was
         | clear that they were defining the process as they went. The
         | entire process was basically:                 1. initial call
         | with recruiter       2. homework project       3. call with
         | engineer to discuss said homework project       4. two phone
         | screens with engineers       5. onsite interview with 6
         | engineers
         | 
         | Finally I had was at the final step which was a call with Ben
         | who was really interesting to talking to as we shared the
         | sysadmin background.
         | 
         | They we going through some pretty crazy growth at the time so I
         | forgave a lot of disorganization in the interview process.
         | Unfortunately I didn't end up getting the role but I'm glad to
         | have had that experience; it was definitely an interesting
         | point in DigitalOcean's history.
        
           | mamurphy wrote:
           | I was bored so I clicked on the key proof in your profile and
           | it says it's been revoked.
        
           | cobaltoxide wrote:
           | That interview process sounds completely standard.
        
           | Ansil849 wrote:
           | Not to hijack this sub-thread, but just a general question:
           | how does one deal with unethical 'homework projects'? I've
           | had a case during an application where I was given a
           | 'homework project' that seemed to me very much not like a
           | theoretical scenario, but more like the company wanting me to
           | do free work for an actual real-world issue they had. Have
           | people had situations where you suspected the same? How do
           | you deal with it?
        
             | jeffparsons wrote:
             | My employer deals with this by compensating candidates for
             | their time. Y'know... with money.
             | 
             | We also don't give them our actual problems as homework
             | tasks. We'll occasionally talk about our real problems with
             | candidates in interviews, but we're very clear about it
             | when we do.
             | 
             | It's not a perfect system. Some candidates will choose to
             | spend longer on the task so that in the follow-up interview
             | they'll have the opportunity to talk about stuff that
             | really shows off their strengths, so their effective hourly
             | compensation for doing it would be quite low. The task is
             | explicitly flexible like this, and we've also hired people
             | who spent _half_ the par time on it (e.g. life
             | circumstances making spare hours hard to come by) and
             | didn't implement much at all, but then were able to
             | confidently answer our questions about the bits they didn't
             | actually implement.
             | 
             | Even if we were to only hire 1 out of every 15 people who
             | get far enough through the pipeline to do the homework task
             | (I don't recall the actual numbers) it costs us _nothing_
             | to compensate people for their time compared to, e.g., what
             | it would cost us to make a bad hire. So it seems like an
             | obvious thing to do even if only to stop candidates from
             | having to wonder "am I getting screwed here?"
        
             | kgc wrote:
             | When I give homework projects, they are extracted from a
             | previous part of the interview: What is a personal project
             | that you've wanted to do but haven't had time to do? Then I
             | just ask them to do that. Win / win.
        
             | temp667 wrote:
             | We give new hires a homework project that is directly work
             | related. We don't consider it unethical. It's really a
             | fantastic way to sort out who can deliver. We used to have
             | it be part of the onsite interview - they could sit for a
             | few hours and do it.
             | 
             | I like these because they are not games. If you want
             | something done, you'd ask an employee to do it. So just ask
             | someone to do something you need done.
             | 
             | In our case at least by the time it was something that was
             | part of an interview, it had already been implemented on
             | the business side. Our projects were usually 2 hours tops?
             | 
             | The idea that this is unethical is wild.
             | 
             | We also do paid internships and have folks actually work on
             | stuff that way -> do a good job, pretty good line up for a
             | full time position.
        
               | jimhi wrote:
               | You are misunderstanding. They are saying it is unethical
               | to ask an interviewee to code for free and use that in
               | production. In your case you are not doing that, although
               | if I interviewed with you and saw the same feature added
               | after I submitted the code I would definitely assume you
               | did something unethical.
        
             | jdavis703 wrote:
             | This happened to me in am interview. It was my first
             | software engineering job, so I was a junior. Wound up
             | solving a problem one of the senior engineers had been
             | struggling with for days. It's probably what got me the
             | job. Assuming the company is actually hiring for the role I
             | think it's perfectly fine to do this. It identifies people
             | who can fill in gaps.
        
             | umvi wrote:
             | If it were me I would be like: "here is proof I completed
             | it and that it works, source code contingent on my being
             | hired ;)"
        
               | xedeon wrote:
               | I like the way you think!
        
             | [deleted]
        
           | gist wrote:
           | > 2. homework project > 3. call with engineer to discuss said
           | homework project
           | 
           | How much time does it typically take (or should take) to
           | complete a 'homework' project?
           | 
           | > 4. two phone screens with engineers > 5. onsite interview
           | with 6 engineers
           | 
           | This seems very 'camel is a horse by committee' to me.
           | 
           | Reminds me a bit (know it's different) of dating where
           | someone wants you to meet their family for approval. I
           | immediately pass on those dates (and will add I am happily
           | married to a woman who did not do that).
           | 
           | I wonder about situations where it takes so many inputs to
           | make a decision to me that speaks a great deal about the
           | decision making process being faulty.
           | 
           | Fwiw when I graduated college years ago I was rejected by a
           | company (friend of the family no less) who said they couldn't
           | hire me because 'yes you are smart but you don't know this
           | business' (true I knew zero). So I started a company like
           | theirs myself and now many years later they are gone and my
           | company (which I sold) still survives. (Will add this was
           | years before the internet and common practice for people who
           | knew nothing to go into businesses they knew about).
           | 
           | Now yes I do understand programming is not the same but my
           | point still stands why so many chefs in the kitchen? Does
           | anyone ever go back and track the people who were rejected
           | what happened to them?
        
             | [deleted]
        
             | kevinoconnor7 wrote:
             | > How much time does it typically take (or should take) to
             | complete a 'homework' project?
             | 
             | I was still in college at the time but I maybe spent 5-10
             | hours over the course of a week or so. I do remember it
             | took a very long time for them to respond after I had sent
             | it in though. I believe the project was to implement a
             | basic web crawler in Go.
             | 
             | > Now yes I do understand programming is not the same but
             | my point still stands why so many chefs in the kitchen?
             | 
             | After the homework problem I think that's where they were
             | defining the process as they went. They seemed to be
             | growing quite a bit at the time (IIRC when I was onsite
             | they had just rented two more floors of office space) and I
             | had bounced between a few contacts that were brand new to
             | the company. The real struggle is that I never knew how
             | many more steps were to come, and I'm not sure they knew
             | either.
             | 
             | Though after the onsite they e-mailed me almost immediately
             | to setup the call with Ben so I think everything had gone
             | well up to that point. I don't think the call with Ben went
             | poorly so my best guess is that they went with someone that
             | had experience rather than a new grad.
             | 
             | FWIW I'm not actually bitter about this. I just found it to
             | be an interesting snapshot of a particularly chaotic point
             | in the company's history.
        
               | [deleted]
        
             | mixmastamyk wrote:
             | > Does anyone ever go back and track the people who were
             | rejected what happened to them?
             | 
             | Almost never, in my experience. Several times I came second
             | in the running and never heard from them again. Contacting
             | them myself didn't work either. Typical shop would rather
             | look thru another hundred randos than revisit one decent
             | candidate.
        
         | ivanvanderbyl wrote:
         | The best year of my career was at DO in 2014/15. We were
         | growing like a weed. It was hard to appreciate the magnitude of
         | the growth until I compared it to everywhere I've worked since.
         | 
         | It was a heck of a lot of fun. Thanks for bringing me on board.
        
       | Zelphyr wrote:
       | I love DigitalOcean and would prefer to build my new project on
       | their platform. Unfortunately, the one and only thing that is
       | keeping me from doing so is their support. It's great, don't get
       | me wrong. Whenever I've contacted them I've gotten helpful
       | responses.
       | 
       | However, for this particular project I feel like it is important
       | to be able to get a human on a phone when I need support. If they
       | offered that, I'd move away from AWS in a heartbeat.
        
         | mtnGoat wrote:
         | but... have you ever gotten anyone useful and able to do
         | anything for you on AWS exorbitantly priced support?
         | 
         | in almost a decade, i havent. actually gotten more done tech
         | related by calling the billing support, then i have through
         | calling paid technical support.
         | 
         | That said all my experiences with DO support were much worse.
        
       | philliproso wrote:
       | I have a $20pm droplet with ubuntu with auto updates (Including
       | major release) from 2014. So it has done 14->18. DB with web app.
       | I have never had anything more stable since.
        
       | emgo wrote:
       | The biggest threat to DigitalOcean is that AWS, Google, and
       | Microsoft are all going vertical by designing and manufacturing
       | their own chips. Over times they'll be able to get hardware for
       | cheaper, and also more specialized hardware that uses less power.
       | 
       | DigitalOcean will have to buy CPUs from Intel or Nvidia/ARM at a
       | higher cost, and eventually maybe even from AWS or Microsoft,
       | essentially giving money to their competition.
       | 
       | If DigitalOcean doesn't get into semiconductors quickly, the only
       | two logical outcomes are to either go bust, or to be acquired by
       | a major cloud provider as a low-cost branch, like airlines do.
        
         | natchy wrote:
         | > the only two logical outcomes are to either go bust, or to be
         | acquired by a major cloud provider
         | 
         | Or acquired by a chip maker, like Intel.
        
         | libria wrote:
         | > AWS, Google, and Microsoft are all going vertical by
         | designing and manufacturing their own chips
         | 
         | What are the GCP and Azure equivalents of AWS Nitro?
        
           | mywittyname wrote:
           | For GCP, it depends. GCP doesn't have a Nitro competitor, but
           | they offer Tensor Processing Units (TPUs). TPUs are more of a
           | competitor to nVidia chips, but they are still custom silicon
           | in the sense of the GP comment.
           | 
           | GCP, AWS, and Azure seem to all be diverging in their
           | specialization. GCP is focusing more on AI/ML/Big Data
           | offerings while AWS is more security-aware, and Azure is more
           | hybrid-cloud focused.
        
             | robertlagrant wrote:
             | GCP feels the most R&Dish, with the K8s and ML innovations.
             | AWS seems to just be pushing on every front very well.
             | Azure feels as though it's catching up, but a bit more
             | sales led/engineering later than the others.
        
           | roland35 wrote:
           | Here is an article about Azure at least:
           | https://www.theverge.com/2020/12/18/22189450/microsoft-
           | arm-p...
           | 
           | "Because silicon is a foundational building block for
           | technology, we're continuing to invest in our own
           | capabilities in areas like design, manufacturing and tools,
           | while also fostering and strengthening partnerships with a
           | wide range of chip providers," says Microsoft's
           | communications chief Frank Shaw.
        
         | jmull wrote:
         | I think there's a lot of doubt whether, in the long run, doing
         | your own hardware makes sense for a cloud provider.
         | 
         | If you work yourself into a performance dead-end, you can spend
         | billions and end up with a chip that isn't particularly
         | competitive. Whereas if your supplier does that, you can switch
         | suppliers.
         | 
         | You could spend $X billion, end up with a chip that isn't
         | particularly competitive and just have to eat those billions.
         | 
         | You bring up airlines... airlines don't build their own
         | airplanes.
        
           | mywittyname wrote:
           | Plus you have to provide most, or maybe all, of the support
           | for software. Not just making compilers and related dev
           | tools, but also building and testing of pre-compiled binaries
           | for popular OSS.
           | 
           | That's fine for a few major pieces of OSS, and for internal,
           | cloud-only software (Redshift, BigQuery), but I don't think
           | that concept scales well, or is particularly quick to adapt
           | to market shifts.
        
             | mritchie712 wrote:
             | Also, to pile on, for any company that runs a real sales
             | process, Redshift and BigQuery are losing to Snowflake. So
             | the argument for custom chips doesn't seem that compelling.
        
           | tekno45 wrote:
           | All the cloud providers also USE their huge infrastructure
           | for other purposes as well. So when they do hit, it has a big
           | effect.
           | 
           | make a chip 2% more efficient in your public cloud AND your
           | private cloud, that is also generating money? You've got BIG
           | savings.
        
           | ksec wrote:
           | Copying a reply [1] I did on HN some time ago. Which should
           | add some perspective on the point being discussed.
           | 
           | AWS are estimated to be ~50% of HyperScalers.
           | 
           | HyperScalers are estimated to be 50% of Server and Cloud
           | Business.
           | 
           | HyperScalers are expanding at a rate faster than other
           | market.
           | 
           | HyperScaler expanding trend are not projected to be slowing
           | down anytime soon.
           | 
           | AWS intends to have all of their own workload and SaaS
           | product running on Graviton / ARM. ( While still providing
           | x86 services to those who needs it )
           | 
           | Google and Microsoft are already gearing up their own ARM
           | offering. Partly confirmed by Marvell's exit of ARM Server.
           | 
           | >The problem is single core Arm performance outside of Apple
           | chips isn't there.
           | 
           | Cloud computing charges per vCPU. On all current x86
           | instances, that is one hyper-thread. On AWS Graviton, vCPU =
           | Actual CPU Core. There are plenty of workloads, and large
           | customers like Twitter and Pinterest has tested and shown AWS
           | Graviton 2 vCPU perform better than x86. All while being 30%
           | cheaper. At the end of the day, it is workload / dollars that
           | matters on Cloud computing. And right now in lots of
           | applications Graviton 2 are winning, and in some cases by
           | large margin.
           | 
           | If AWS sell 50% of their services with ARM in 5 years time,
           | that is 25% of Cloud Business Alone. Since it offer a huge
           | competitive advantage Google and Microsoft has no other
           | choice but to join the race. And then there will be enough of
           | a market force for Qualcomm, or may be Marvell to Fab a
           | commodity ARM Server part for the rest of the market. Which
           | is why I was extremely worried about Intel. (Half of) The
           | lucrative Server market is basically gone. ( And I haven't
           | factored in AMD yet ) 5 years in Tech hardware is basically
           | 1-2 cycles. And there is nothing on Intel's roadmap that
           | shown they have the chance to compete apart from marketing
           | and sales tactics. Which still goes a long way if I have to
           | be honest, but not sustainable in long term. It is more of a
           | delaying tactics. Along with a CEO that despite trying very
           | hard, had no experience in market and product business.
           | Luckily that is about to change. Evaluating ARM switch takes
           | time, Software preparation takes time, and more importantly,
           | getting wafer from TSMC takes time as demand from all market
           | are exceeding expectations. But all of them are already in
           | motion, and if these are the kind of response you get from
           | Graviton 2, imagine Graviton 3.
           | 
           | [1] https://news.ycombinator.com/item?id=25808856
        
           | veltas wrote:
           | Although the difference with airlines is nobody is pooling
           | the wealth of the world into airlines, investors think tech
           | is going to take over everything. Your cloud providers are
           | being valued like they are going to either run the world at
           | some point or get some compensation for being dismantled by
           | international policy. And when your investors think this way,
           | and you make as much money as these companies do, you might
           | as well make your own chips.
        
           | zapita wrote:
           | > _You bring up airlines... airlines don 't build their own
           | airplanes._
           | 
           | Some of them refurbish and operate their own engines (by far
           | the most complex part of the airplane) instead of going to GE
           | or Rolls Royce.
           | 
           | Delta actually operates their own oil refinery.
           | 
           | So airlines are in fact a good analogy.
        
         | dusing wrote:
         | Interesting theory, maybe DO should partner with Apple.
        
           | xuki wrote:
           | Assuming that Apple want to sell their chip to you. And
           | that's almost certainly a no.
        
       | pid_0 wrote:
       | I just cannot fathom why people would use a tier 2 cloud provider
       | over AWS or GCP. It can't possibly be significantly cheaper. The
       | tooling is non-existent. There is little third party
       | tutorials/documentation compared to tier 1.
       | 
       | Why would anyone buy this?
        
         | johnthedebs wrote:
         | Because (comparing DO to AWS) it is much cheaper for many use
         | cases, there is good tooling and documentation, and the user
         | experience is _dramatically_ better. I 'm curious - on what did
         | you base your assumptions?
        
       | gregjw wrote:
       | Cool! Long time user, good luck.
        
       | ksec wrote:
       | Congrats to DO.
       | 
       | Really like the direction DO is going. Which is something in
       | between millions of small VPS firm and giant like AWS. It also
       | forced Linode to React. And proved the space in Cloud Hosting
       | exist, which company like Vultr and UpCloud are now joining. And
       | I think their features are finally close to hitting the perfect
       | spot. With all the essential like DBaS, Object Storage and K8s.
       | 
       | They have also ( finally ) introduced AMD EPYC CPU, ( no more
       | explicit mention of Intel CPU on their homepage ). Which is good
       | for their margin since price / core count are cheaper.
       | 
       | So DO today is something I would like as an AWS competitor in
       | 2016. And they are finally here. I am not sure if there are any
       | other low hanging fruit at all. Or what features I would want for
       | a company competing at this space. It will be things that people
       | dont see, like CPU performance, SSD Performance, Services
       | Reliability, Interconnect, Better Network, More Locations,
       | security improvement....
       | 
       | There are only two suggestions I could think on top of my head
       | right now.
       | 
       | First is the pricing structure and list. It is getting very messy
       | and AWS like. SSD Storage variant should be a simple calculable
       | option, not an extra line on pricing table that tries to bombard
       | me with extra information. And I know Basic Droplet are burst-
       | able CPU resources, but not showing they are vCPU ( a Single
       | Thread ) and calling them CPU doesn't really rhymes with me.
       | 
       | Second is Full BareMetal Monthly option. Something like vultr [1]
       | is offering. I am not sure if below $100 is feasible. Basically
       | it should be something that offer much better price / performance
       | at a monthly payment that pushes people with low spending to
       | metal for baseline load with headroom as insurance. Pushing up
       | Average User Spending. It should also be attractive to small
       | business. ( Although arguably Linode and Vultr has yet to expand
       | or launch Metal seems to suggest otherwise )
       | 
       | [1] https://www.vultr.com/products/bare-metal/
        
       | cube00 wrote:
       | They lost me after I couldn't switch from CentOS unless I also
       | agreed to lose my IP address. Reached out to support and got the
       | unhelpful reply of "use another OS version within the CentOS
       | family" which didn't really help considering CentOS was charging
       | its direction.
        
         | riffic wrote:
         | droplets are cattle, not pets.
        
         | covidthrow wrote:
         | They have "floating IP addresses" as droplet-agnostic IPs for
         | exactly this purpose.
        
           | cube00 wrote:
           | A floating IP address couldn't be used in my case because I
           | needed a reverse DNS entry and "Floating IPs do not support
           | PTR (rDNS) records."
           | 
           | Along with other limitations such as "we do not support IPv6
           | floating IPs. All floating IPs are IPv4" and "floating IPs do
           | not support SMTP traffic"
           | 
           | https://www.digitalocean.com/docs/networking/floating-ips/
        
             | coder543 wrote:
             | When would rDNS actually be useful?
             | 
             | It's probably a failure of imagination on my part that I
             | can't think of a use case where I would want that.
             | 
             | Why not just use normal, forward DNS?
        
               | cube00 wrote:
               | It's a requirement to send mail to some servers.
               | 
               | "Set up valid reverse DNS records of your IP addresses
               | that point to your domain."
               | 
               | https://support.google.com/mail/answer/81126
        
               | Denvercoder9 wrote:
               | Having functioning and accurate reverse-DNS is required
               | for mail servers, as lots of mailservers reject mail from
               | servers without correct reverse DNS. There's likely other
               | protocols where having functioning reverse DNS is a
               | necessity or strongly advantageous as well.
        
         | dubcanada wrote:
         | You lost me there, their CentOS products are in a separate area
         | then the rest of the OS's?
         | 
         | Couldn't you just reformat with what ever OS you want?
        
           | cube00 wrote:
           | "You can use any image in your account that runs an OS that
           | is in the same family as the Droplet you're rebuilding"
           | 
           | https://www.digitalocean.com/docs/droplets/how-to/rebuild/
           | 
           | I thought support could help me out given the CentOS
           | situation and it being a special case but they weren't even
           | aware of what was happening or that users would need to move
           | off despite my explanation in the ticket. Hopefully it's
           | better now it's more widely known.
        
             | riffic wrote:
             | > runs an OS that is in the same family as the Droplet
             | you're rebuilding
             | 
             | This line in the documentation might be misleading. Unless
             | you have a very old legacy droplet that uses HV-assigned
             | kernels, you should be able to reimage your droplet and use
             | another OS.
        
       | daywednes wrote:
       | what's their IPO valuation?
        
         | [deleted]
        
       | api wrote:
       | I find this really exciting, since DO has one of the only managed
       | PGSQL + K8S combos that seems like it could compete with Google
       | and AWS. Always nice to have more competition in this space. With
       | IPO funding they can probably really compete. They'll probably
       | have their own data centers soon.
        
       | aj_nikhil wrote:
       | DO is a dream company. Build something like this.
        
       | breck wrote:
       | Here are the problems I've had in my 7+ years as a DigitalOcean
       | customer: .
       | 
       | Those are the ones just off the top of my head.
       | 
       | Love this company and it's made my life so much easier for the
       | past near decade.
       | 
       | Excited to see they are financially very healthy.
        
         | firstfewshells wrote:
         | They've accrued up losses of $43M, $40M and $35M in the 3
         | preceding years. Funny how that's considered financially
         | healthy in the world we're living right now.
        
           | breck wrote:
           | 25% revenue growth past 2 years and losses have remained
           | constant.
           | 
           | If this wasn't hard tech, I would be worried, but this is
           | hard capital intensive stuff and looks to me like they are
           | doing fine.
           | 
           | If in 10 years there ends up being 1 independent cloud
           | company, that would be a pretty amazing business. DO has a
           | good a shot as any (only thing I can think off is AWS spins
           | out). DO is so good that there I can't think of a worst case
           | scenario being anything other than one of the big 3 buys
           | them. Best case is the moon.
        
           | aeturnum wrote:
           | I think it's good to point this out and think a little about
           | what "health" means here. Looking at their consolidated
           | financial data on page 11, you can see they spend about $1
           | providing a service someone pays $2 for. Then all the rest of
           | it gets eaten up by salary, r&d and marketing.
           | 
           | It feels like a very different situation than, say, Uber -
           | where there's a question about if Uber can balance driver
           | payouts and customer fees in a way where they make money. DO,
           | instead, is already turning $1 in goods into $2 in revenue
           | and they're just looking to grow enough so that $1 in
           | potential profit covers everything.
        
           | ttul wrote:
           | So long as the investment into growth (sales and marketing)
           | is paid back through the cashflow of customers during their
           | lifetime, the losses are tolerable.
           | 
           | A provider like DO expects to have customers for many years.
           | At 50% gross margins, $100 spent to acquire a $50/yr customer
           | will be returned in four years. That may be an acceptable
           | trade off.
        
           | mgfist wrote:
           | Capital is cheap
        
         | treesknees wrote:
         | I ran into issues several years ago where the IP of my
         | DigitalOcean droplet always seemed to be on block lists or
         | banned for abuse from various services. As a result it made it
         | impossible to use as a VPN server or mail server. The early
         | ability to spin up and charge hourly rates made them good
         | targets for spammers compared to companies like Linode, who at
         | the time didn't have hourly rates.
         | 
         | I have to imagine things have gotten better, but it did taint
         | my view of DO as more of a dev playing field than a reliable
         | hosting provider.
        
           | wwarren wrote:
           | In my experience this is 100% the case with all IaaS
           | providers. AWS's entire IP space is basically on all email
           | block lists for example.
        
             | indigodaddy wrote:
             | I find this extremely hard to believe.
             | 
             | EDIT: Just to clarify, AWS has a lot of IPs, over 100
             | million [1]. Let's just speculate that 1/50th might be in
             | an overall pool for customer allocation. Do you really
             | think the majority of 2M IPs would come back blacklisted in
             | some form? I haven't dug in to this to actually see if this
             | is the case, but it would seem laughable to even begin to
             | think that this might be the case..
             | 
             | [1] https://toonk.io/aws-and-their-billions-in-
             | ipv4-addresses/in...
        
               | LinuxBender wrote:
               | I think the wording should be changed. I would agree that
               | all their EC2's and lightsail instances would be in the
               | RBL/RSL's. AWS have an email service specifically for
               | this use case.
        
               | indigodaddy wrote:
               | I would be shocked if even that were true. Well, looks
               | like I've got some homework for tonight.
        
           | cube00 wrote:
           | It hasn't gotten better. I had to plead with a postmaster at
           | a large ISP to unblock my droplet because they banned all
           | DO's IPs after they were refusing to manage the way spammers
           | were abusing the service. Not a "we're sending to spam" ban
           | but a hard 550 connection refused. The postmaster suggested I
           | do some Googling on the topic and I was shocked at what I
           | found, so I can see why they had to throw their hands up and
           | block the lot.
           | 
           | I appreciate it's not easy problem but it's clear the
           | community felt they were being ignored and DigitalOcean did
           | nothing to try and limit the spread. For example, moving to a
           | model like other providers have where you need to request
           | permission to send mail from support.
           | 
           | A selection over two years:
           | https://www.digitalocean.com/community/questions/when-
           | will-d...
           | 
           | https://www.digitalocean.com/community/questions/stop-the-
           | sp...
           | 
           | https://www.digitalocean.com/community/questions/how-
           | serious...
        
         | wrycoder wrote:
         | The only issue I've ever had is the login auth email can take
         | 20 minutes to arrive at fastmail. This seems to have gotten
         | better lately.
         | 
         | What a great service!!
        
         | arcticfox wrote:
         | That's pretty much me too. I briefly thought they had a major
         | Kubernetes fail recently, but they immediately diagnosed the
         | issue and got back to us...We'd shot ourselves in the foot. I
         | love DigitalOcean.
        
       | f430 wrote:
       | when will DigitalOCean IPO?
        
       | babayega2 wrote:
       | Thank you DO for offering hosting for us in Africa who need a
       | reliable hosting and fixed rates for the services so that we can
       | plan ahead. Also the tutorials are a must have! Like today I used
       | Django and DO Space and everything was smooth.
        
       | throwawaygulf wrote:
       | I wonder how all the leftist activist employees that were shown
       | the door feel after leaving six months ago. Bitcoin's meteoric
       | rise, Coinbase market cap at the level that it is, IPO, etc.
       | 
       | Coinbase reduced risk by kicking out leftists. Hopefully the rest
       | of SV/Bay Area companies follow suit.
        
       | jimmyed wrote:
       | One would imagine they'd make their APIs resilient before this?
        
       | azinman2 wrote:
       | Anyone else find it interesting that their revenue graph only
       | starts in 2017? At what I'd assume to be a pretty low number
       | given how long they've been around and how explosive the VM world
       | has grown? Seems like if they hadn't taken all that VC capital
       | there's no way they could have afforded any of their growth.
       | 
       | It worried me that they're only at a couple hundred MM in a self-
       | proclaimed 116B+ opportunity after 10 years.
        
         | quacker wrote:
         | _It worried me that they're only at a couple hundred MM in a
         | self-proclaimed 116B+ opportunity after 10 years._
         | 
         | Yes. How do they grow further? DO will be compared to AWS and
         | Azure in the market, and there's a good chance their stock will
         | be punished as a result. Plus, if DO actually makes in-roads in
         | market share, AWS is a beast that, if it wants, can crush them
         | on pricing and features for long enough to kill them.
        
       | unixhero wrote:
       | Fantastic company.
        
       | gist wrote:
       | Use case of DO vs. AWS or Google Cloud or similar?
        
       | [deleted]
        
       | erwinh wrote:
       | been a fan of DigitalOcean for years. Somehow they were able to
       | bring a focus on usability to cloud offerings like no other
       | provider could.
       | 
       | Most recent thing that made my life 100x easier is their Apps
       | platform with direct Github integrations for deployment of react
       | apps removing any need to learn CI/CD stuff which I dont want to
       | waste time on in early alpha startup phase :)
        
       | [deleted]
        
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