DigitalOcean (NYSE: DOCN) is not like the large cloud infrastructure providers that dominate the market. While Amazon Web Services (AWS), Microsoft Azure, and 's Google Cloud cater to enterprise customers with complex requirements and vast budgets, the average DigitalOcean customer spends less than $100 per month.
This focus on individual developers and small businesses yields opportunities and risks. The market for infrastructure-as-a-service and platform-as-a-service among individuals and companies with fewer than 500 employees is currently worth $114 billion, and IDC expects it to nearly double to $213 billion by 2027. While the big cloud providers play in this market, the simplicity of DigitalOcean's platform is appealing to those without vast IT budgets.
The downside to DigitalOcean's focus on smaller customers is a lack of stickiness. When a large enterprise goes all-in on AWS, that's the ball game. That enterprise is unlikely to seriously consider switching providers because the disruption and cost involved with untangling itself from AWS would be too high. For a small business using DigitalOcean, moving some virtual servers and small databases would be doable.
Source Fool.com