Ask HN: What in Digital Ocean's business plan convinced top VCs to invest?

https://news.ycombinator.com/item?id=7541719
by ritwikt • 12 years ago
1 2 12 years ago

They sure have 1. An awesome team 2. An amazing growth story

but they are primarily differentiated by price in a highly capital intensive market [building out DCs is not cheap]. They are going against 3 giants[AMZN, MSFT, GOOG] each with:

1. Constantly slashed prices 2. A bigger ecosystem/more value add services to further subsidize the infrastructure -- eg. buy Sharepoint licenses, get compute free 3. Native advantage of needing big clouds for their internal infrastructure 4. Deep pockets

What positioning moat beyond price am I missing?

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