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Digital Ocean has a market cap of $3.49B as of yesterday, so $3.5B for Vultr sounds about right. It's a mundane business in a crowded market, providing service
by kijin 2y ago
Digital Ocean has a market cap of $3.49B as of yesterday, so $3.5B for Vultr sounds about right.
It's a mundane business in a crowded market, providing services they copied from other companies, which in turn anyone can copy. Oh, and they also need to compete with Akamai (Linode) who probably have much deeper pockets.
- alephnerd 2y ago> Oh, and they also need to compete with Akamai (Linode) who probably have much deeper pockets. As of a couple (2-3 years ago) Akamai had no plans or interest to expand into Cloud. They wanted to remain on-prem/hybrid because of existing synergies and strategies. Their CDN business was also heavily used by companies that have cloud BUs. I don't think this strategy has changed.
- kijin 2y agoYet Akamai hedged their bet by acquiring a well-known VPS company. Just because they aren't aggressive about expanding Linode doesn't mean that Linode is not a serious competitor to Vultr. Linode offers nearly everything Vultr does, at a similar price point.