DigitalOcean, a developer-focused cloud services provider (CSP), has cut roughly 30 to 50 employees, TechCrunch reports. The cuts come roughly six months after DigitalOcean announced new CEO and CFO leaders -- both of whom have M&A (merger and acquisition) and exit experience.Related: Track all technology industry layoffs here.DigitalOcean CEO Yancy SpruillWhile DigitalOcean is respected for its developer-friendly CSP focus, some market pundits wonder how the privately held cloud service provider is performing amid massive growth at Amazon Web Services (AWS) and Microsoft Azure, and growing investments at Google Cloud Platform (GCP).
DigitalOcean Annual Recurring Revenue: An M&A Test Balloon?
In a statement about the recent job cuts, DigitalOcean told TechCrunch:
“DigitalOcean recently announced a restructuring to better align its teams to its go-forward growth strategy. As part of this restructuring, some roles were, unfortunately, eliminated. DigitalOcean continues to be a high-growth business with $275M in and more than 500,000 customers globally. Under this new organizational structure, we are positioned to accelerate profitable growth by continuing to serve developers and entrepreneurs around the world.”
The annual recurring revenue (ARR) disclosure is a curious move. It could be a test balloon, designed to help potential buyers, suitors and bidders understand the size and potential valuation of DigitalOcean's business, ChannelE2E believes.
Managed service and IT providers, cloud resellers and web development agencies that focus on selling DigitalOcean infrastructure along with their own services; and
platform builders tha develop their own technology solutions on top of DigitalOcean.
DigitalOcean Chief Customer Officer Jeff Giannetti, a Veeam Software veteran, is leading the partner push.The Solutions Partner Program aligns with DigitalOcean's Partner App Marketplace — a platform that connects developers with partner-built solutions to enable easier app development, the company says.Example marketplace partners, the company noted in 2019, include:
Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.