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The cloud provider wants to woo the developer market and the type of coders who will build the next Airbnb or Uber.

By Jonathan Vanian
July 8, 2015

After some time in the rumor mill, fast-rising cloud startup Digital Ocean is confirming that it has indeed raised $83 million. With the investment, the cloud-computing provider now has $123.4 million in total funding, said Digital Ocean co-founder and chief marketing officer Mitch Wainer.

Digital Ocean specializes in cloud computing, which means companies can rent out space in Digital Ocean’s data centers to run their business and applications. In the grand scheme of things, Digital Ocean is far behind cloud computing giants like Amazon AMZN Web Services, which claims a number of big name clients like Pfizer, NASA, and Dow Jones.

However, Digital Ocean has caught on big with developers who find the startup’s cloud service—an all-in-one package of networking, storage, and computing—easier to buy and configure than the big-time cloud providers whose pricing is a bit more convoluted.

It’s these developers that Digital Ocean wants to target and is what separates the startup from its larger cloud competition that is “catering to the Fortune 500,” said Wainer.

While Digital Ocean may not count legacy companies like John Deere and Procter and Gamble as clients, it does have 500,000 developers using its cloud technology. Wainer believes that these developers are building the next big web companies, like Airbnb, Uber, and Instacart.

“We are targeting the development layer, which will eventually become much bigger businesses,” said Wainer.

Wainer said that New York-based Digital Ocean is popular with the companies affiliated with startup incubators like Y Combinator and 500 Startups.

“All those startups being accelerated by those accelerators are using Digital Ocean today,” said Wainer.

Whether those startups stick with Digital Ocean as they grow and their infrastructure expands remains to be seen. Cloud providers like Amazon and Microsoft MSFT are constantly trying to outdo each other with new features like database tools and analytics services, which could potentially lure companies down the road.

Digital Ocean, on the other hand, doesn’t offer any of the bells and whistles of other cloud providers and instead is focused on selling the basics of running an application in production.

“Our mission was to simplify infrastructure to save developer’s time,” said Wainer.

Digital Ocean now has 150 employees and data centers spread out across New York, Singapore, London, San Francisco, Amsterdam, and Frankfurt.

Access Industries drove the investment with participation from Andreessen Horowitz.

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