Report: Hot cloud startup is raising millions

July 1, 2015, 7:01 PM UTC
Photograph by George Thomas

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.

Subscribe to Data Sheet, Fortune’s daily newsletter on the business of technology.

For more on cloud computing, check out the following Fortune Video

Read More

Artificial IntelligenceCryptocurrencyMetaverseCybersecurityTech Forward