Photograph by George Thomas

A fast-rising cloud computing startup is said to be raising $83 million to battle tech titans like Amazon and Microsoft.

By Jonathan Vanian
July 1, 2015
July 01, 2015

Cloud computing just keeps getting hotter.

Digital Ocean, a fast-rising startup that’s aiming to compete against big cloud providers like Amazon Web Services and Microsoft, is raising $83 million, according to a report by Business Insider that is based on unnamed sources.

Cloud computing, in which companies rent out their data centers to others for computing and storage services, is a big business nowadays with tech titans like IBM IBM , VMware VMW and Google GOOG all trying to grab a piece of the market that Amazon AMZN currently dominates.

Digital Ocean, based in New York, has attracted a lot of developers to its cloud computing service who are keen on its pricing that involves selling a combined package of computing, storage, and networking resources instead of separating them by price and usage like Amazon.

Digital Ocean claims that it is now the second largest hosting provider in terms of computers connected to its cloud. But that number doesn’t take in account the amount of business the startup generates, which is dwarfed by titans like Amazon and Microsoft.

A Digital Ocean spokesperson wrote in an email to Fortune that the funding is “just a rumor,” and declined to give any more specifics.

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