Until quite recently the perspective of starting a cloud-based business was like rocket science both literally and figuratively. Unless you have millions of dollars on highly productive and powerful hardware, hundreds of thousands on software and thousands on salary of experienced and expert IT team, you could do nothing in the sphere.
However, with flow of time the situation began to change for the betterment of small cloud startups. Key element of success of relatively small companies is their ability to maintain expenses on the low level. Some companies manage to do that with help of creation of their own software for cloud storages. Others prefer to thrift by creating hardware on their own instead of purchasing it.
Ben Uretsky, DigitalOcean CEO, states that the reason on their success is that they use only those tools that they need, without wasting money on different unnecessary stuff and all these tools bring revenue.
DigitalOcean focuses on selling cloud services to software developers who are looking for cheapness of data storage and software that they can use. DigitalOcean proposes its own software and the company buys data-center hardware with great discounts from suppliers. As a result, the company that hardly has four years history has almost 200,000 host computers in the cloud and at the moment it is second largest company after Amazon.
The prices of DigitalOcean are slightly lower than Amazon or Microsoft propose – $10 per month.
Gleb Budman, Backblaze’s CEO, states that the prices of his company are even lower – half a penny per gigabyte per month. Here much prominence is given to the hardware, and today the company has a possibility to propose a rent of their services and storage for $10 instead of$25.
Despite the fact that both companies have no possibility to reach the size of the Amazon, they don’t have to as they are already successful thanks to the individual developers and small development agencies.