DigitalOcean to Buy Pakistan’s Cloudways for $350 Million

[hydrabadi_arab]

Cloud giant DigitalOcean has entered into an agreement to acquire Pakistan’s Cloudways, a leading managed cloud hosting and software as a service (SaaS) provider for SMBs, for $350 million.


The acquisition will simplify workflows for small to medium-sized businesses that are looking for easier ways to build and scale their digital businesses.

Cloudways provides simple onboarding and day-to-day management that is purpose-built for certain SMBs looking to outsource their on-ramp to the internet, helping them offload the complexities of cloud infrastructure so they can spend more time running and scaling their businesses.

The acquisition of Cloudways expands DigitalOcean’s serviceable market within global SMBs and increases options for digital agencies, eCommerce sites, bloggers, freelance developers and builders hosting on WordPress, PHP and Magento. WordPress is the most popular content management system (CMS) and, according to W3Techs, it powers 43 percent of all websites on the internet.

Entrepreneurs and SMBs choose Cloudways to optimize the performance, value, support, reliability and flexibility of their infrastructure and application management. As a result, they can save time and money while they grow their businesses. Cloudways provides a differentiated offering with an open and flexible platform, an incredible price-to-performance ratio and superior customer experience.

DigitalOcean and Cloudways have been close partners since 2014 — Cloudways currently relies on DigitalOcean infrastructure to power approximately 50% of its customers. Cloudways serves an international and growing customer base with an industry-leading NPS score of 71. Together, DigitalOcean and Cloudways will serve over 124,000 customers paying over $50 per month, representing approximately 84% of the pro forma company’s total revenue.

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“SMBs represent more than 50% of global gross domestic product (GDP) and spend $70 billion on cloud infrastructure today. With this acquisition, we are making it easier to launch, build and scale a business on DigitalOcean,” said Yancey Spruill, CEO at DigitalOcean.

“Cloudways and DigitalOcean share values around simplicity, community, openness and support that are vital attributes to how we differentiate in the marketplace. Together, we will be focused on providing a simple, easy, intuitive and trusted platform to better serve SMBs so they can build their businesses and pursue their dreams of entrepreneurship,” Spruill added.

Cloudways has built a rapidly growing business generating free cash flow in addition to impressive customer metrics. Spruill continued, “Importantly, we are excited to add Cloudways to the DigitalOcean family as they not only share our vision for the SMB market opportunity but are also a Rule of 50 business that shares our commitment to delivering compelling returns for our investors.”


“We have worked closely with the DigitalOcean team since 2014 and are now incredibly excited to officially be a part of the company,” said Aaqib Gadit, co-founder and CEO at Cloudways.

“SMBs love simplicity, performance, predictability, affordability, and great support. Together with DigitalOcean, we can turbocharge our mission of helping SMBs grow through our cloud offerings,” he added.

The transaction is expected to close in September and DigitalOcean is forecasting for Cloudways to contribute between $13 and $15 million of revenue in fiscal 2022.

DigitalOcean to Buy Pakistan’s Cloudways for $350 Million

Cloud giant DigitalOcean has entered into an agreement to acquire Pakistan's Cloudways, a leading managed cloud hosting and software as a service (SaaS)

propakistani.pk

 

[Drizzt]

Cloud giant DigitalOcean has entered into an agreement to acquire Pakistan’s Cloudways, a leading managed cloud hosting and software as a service (SaaS) provider for SMBs, for $350 million.


The acquisition will simplify workflows for small to medium-sized businesses that are looking for easier ways to build and scale their digital businesses.

Cloudways provides simple onboarding and day-to-day management that is purpose-built for certain SMBs looking to outsource their on-ramp to the internet, helping them offload the complexities of cloud infrastructure so they can spend more time running and scaling their businesses.

The acquisition of Cloudways expands DigitalOcean’s serviceable market within global SMBs and increases options for digital agencies, eCommerce sites, bloggers, freelance developers and builders hosting on WordPress, PHP and Magento. WordPress is the most popular content management system (CMS) and, according to W3Techs, it powers 43 percent of all websites on the internet.

Entrepreneurs and SMBs choose Cloudways to optimize the performance, value, support, reliability and flexibility of their infrastructure and application management. As a result, they can save time and money while they grow their businesses. Cloudways provides a differentiated offering with an open and flexible platform, an incredible price-to-performance ratio and superior customer experience.

DigitalOcean and Cloudways have been close partners since 2014 — Cloudways currently relies on DigitalOcean infrastructure to power approximately 50% of its customers. Cloudways serves an international and growing customer base with an industry-leading NPS score of 71. Together, DigitalOcean and Cloudways will serve over 124,000 customers paying over $50 per month, representing approximately 84% of the pro forma company’s total revenue.

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“SMBs represent more than 50% of global gross domestic product (GDP) and spend $70 billion on cloud infrastructure today. With this acquisition, we are making it easier to launch, build and scale a business on DigitalOcean,” said Yancey Spruill, CEO at DigitalOcean.

“Cloudways and DigitalOcean share values around simplicity, community, openness and support that are vital attributes to how we differentiate in the marketplace. Together, we will be focused on providing a simple, easy, intuitive and trusted platform to better serve SMBs so they can build their businesses and pursue their dreams of entrepreneurship,” Spruill added.

Cloudways has built a rapidly growing business generating free cash flow in addition to impressive customer metrics. Spruill continued, “Importantly, we are excited to add Cloudways to the DigitalOcean family as they not only share our vision for the SMB market opportunity but are also a Rule of 50 business that shares our commitment to delivering compelling returns for our investors.”


“We have worked closely with the DigitalOcean team since 2014 and are now incredibly excited to officially be a part of the company,” said Aaqib Gadit, co-founder and CEO at Cloudways.

“SMBs love simplicity, performance, predictability, affordability, and great support. Together with DigitalOcean, we can turbocharge our mission of helping SMBs grow through our cloud offerings,” he added.

The transaction is expected to close in September and DigitalOcean is forecasting for Cloudways to contribute between $13 and $15 million of revenue in fiscal 2022.

DigitalOcean to Buy Pakistan’s Cloudways for $350 Million

Cloud giant DigitalOcean has entered into an agreement to acquire Pakistan's Cloudways, a leading managed cloud hosting and software as a service (SaaS)

propakistani.pk

I didn't know Cloudways was Pakistani. Really short-sighted to sell Cloudways, it has a lot of potential to grow.

 

[Areesh]

I didn't know Cloudways was Pakistani. Really short-sighted to sell Cloudways, it has a lot of potential to grow.

Agreed. They shouldn't have sold it

 

[Catalystic]

Agreed. They shouldn't have sold it

Maybe they’re selling and leaving to settle abroad……like other Pakistanis. No surprises there

 

[_NOBODY_]

I didn't know Cloudways was Pakistani. Really short-sighted to sell Cloudways, it has a lot of potential to grow.

@Areesh The stakeholders can use the money they have earned from this exit to start new businesses. We shouldn't be underestimating the intelligence of the entrepreneurs who created this successful company.

 

[Areesh]

@Areesh The stakeholders can use the money they have earned from this exit to start new businesses. We shouldn't be underestimating the intelligence of the entrepreneurs who created this successful company.

I am worried about employees. Hope they don't get fired

I have friends working there

 

[_NOBODY_]

I am worried about employees. Hope they don't get fired

I have friends working there

As long as the company wasn't going in loss and it didn't stop growing there won't be any layoffs.

 

[mulj]

@Areesh The stakeholders can use the money they have earned from this exit to start new businesses. We shouldn't be underestimating the intelligence of the entrepreneurs who created this successful company.

brilliant bussiness ideas occurs once and you nourish it until it branches into selfsustained company system, of course that they will probably do something else but without initial motivation, lack of hunger for success that would be just echo of wasted initial potential.

 

[_NOBODY_]

brilliant bussiness ideas occurs once and you nourish it until it branches into selfsustained company system, of course that they will probably do something else but without initial motivation, lack of hunger for success that would be just echo of wasted initial potential.

If you believe that the hunger of these entrepreneurs has been extinguished then what makes you think that they could have successfully continued growing their company? Also there are countless problems in the developing world that need to be solved. Evey problem is an opportunity to create a company that can rectify that particular problem. With all due respect, you are being shortsighted if you believe that it isn't possible to build another successful company after selling a successful company.

 

[Indos]

As far as I know, Indonesian companies in this kind of business focuses on Indonesian domestic market since they uses server in Indonesia that make it easier to track and accessed by Indonesians. That is their selling point and they have superb Customer service with 24 hours service work and of course it is easier for Indonesians to speak to other Indonesians using our own language when we face problem in making/developing/managing our company website

And that is also due to Indonesians who in general dont have English skills as good as former Britain/US colonies people despite we learn English since elementary school and in general has better English compared to Far East people except Malaysian, Singaporean, and Philippinos. Tapping international market needs Customer Service team that should have good English fluency, majority of Indonesian workforce understand and can communicate in English but not in the level which is needed for the industry to serve international market.

This is why I stated earlier that Pakistani has better advantage compared to Indonesia in the digital service business when it comes to tapping international market. Pakistani should grab huge chunk of IT service export that is currently enjoyed by Indian companies

 

[Indos]

brilliant bussiness ideas occurs once and you nourish it until it branches into selfsustained company system, of course that they will probably do something else but without initial motivation, lack of hunger for success that would be just echo of wasted initial potential.

I think it is a good idea to sell it at that amount, due to tight competition that already exist in this market. It is clear that Digital Ocean is also intended to tap to potential Pakistan future domestic market as well, and probably Indian market as well as both speak English and Urdu. With their capability, they could grow the market better with Pakistani talent inside the company.

For Pakistani founder that sell the company. The money can be used in other business idea that can have better profit and with lower competition. I mean with that money the founders can tap Pakistani market for business like Gojek and Bukalapak (Indonesian companies) where it has potential for getting more funding and profit like Gojek service is already quite many and dominate Indonesian market where Grab is in the second place.

The same move made by Elon Musk as well, the different is that Musk needed more money in the market like USA while Pakistan is basically still relatively virgin in this kind of new business, so less money required to start a sophisticated company in Pakistan.

 

[mulj]

If you believe that the hunger of these entrepreneurs has been extinguished then what makes you think that they could have successfully continued growing their company? Also there are countless problems in the developing world that need to be solved. Evey problem is an opportunity to create a company that can rectify that particular problem. With all due respect, you are being shortsighted if you believe that it isn't possible to build another successful company after selling a successful company.

Hope you and @Indos are right and i am wrong.

 

[Wood]

The founders of this company will likely use the proceeds of the sale to build a better company!