DigitalOcean Wants to Double Data Storage Sales
It's extremely easy to spin up a virtual server on DigitalOcean Holdings' (NYSE: DOCN) platform. Pricing is transparent and obvious, and the platform is designed for ease of use. Newer products like the app platform, functions, and managed databases make things even simpler, abstracting away management and administrative tasks.
DigitalOcean's growth has been impressive. Revenue surged 33% year over year on an organic basis in the third quarter despite an uncertain economic environment. The average customer now spends nearly $80 per month with DigitalOcean, up 28% year over year, and 86% of revenue comes from customers spending more than $50 per month.
One area where DigitalOcean has lagged is data storage. CEO Yancey Spruill revealed during the third-quarter earnings call that storage revenue is a high-single-digit percentage of total revenue. Spruill noted that it's common for customers to use DigitalOcean for compute and an alternative cloud platform for storage. By improving its storage products, the company believes it can double the revenue contribution from storage over the next few years.
Source Fool.com
