DigitalOcean Goes Shopping, Equinix/AMS-IX Africa, and More

Last updated on by Christian Koch

Hey Friends,

Welcome to another Weekly Briefing.

Last week was super-active across sectors and today we'll take look at DigitalOcean's latest acquisition as the company marches down the road to $1B, see what's up with some of the new-wave cloud infrastructure startups, and take a brief look at the energy crisis impacting Europe.

As we wrap up August, I'd like to once again thank this month's sponsor, Aptient. If you or someone you know is looking for global deployment, network architecture, or engineering support, be sure to check them out.

On that note, summer is almost over, and fall conference season is getting closer, but for now, it's time to get into this week's update.

Have a great week, and don't forget to share this email and encourage your colleagues and friends to subscribe.

Your Weekly Briefing

Cloud Infrastructure

DigitalOcean is acquiring Cloudways, a managed hosting provider founded in 2011 focused on SMBs for $350M in cash and extended earn-outs to be paid over a 30 month period after closing. Transaction highlights:

  • Adds ~70K customers and increases DO's $50+ customer count by nearly ~20K
  • Cloudways has ~280 employees, increasing DigitalOcean's headcount by 30%
  • Cloudways is expected to generate more than $52M in 2022 and has been growing at a 3-Year CAGR north of 50%
  • DigitalOcean expects Cloudways to contribute ~$15M of revenue in 2022 after the deal closes in September (expected)

Cloudways has also been a customer of DigitalOcean since 2014, and currently uses DO infrastructure to support ~50% of its customers, while also leveraging AWS, Google Cloud, Vultr, and Akamai (Linode) which I expect to eventually migrate to DO infrastructure over time. Link


  • OVHcloud is raising prices as of December 1st, 2022 for Bare Metal Servers, VPS, Hosted Private Cloud, Public Cloud, and Web hosting products by 10%, citing inflation and rising energy costs across Europe driving the price increases. Link
  • AWS added two new edge locations for CloudFront, Global Accelerator and other services in Hanoi and Ho Chi Minh City, Vietnam. Link
  • Heroku launched a public roadmap, and announced it is discontinuing its free plans. Link
  • 11:11 Systems is acquiring the cloud/managed services business from Sungard out of bankruptcy. Link
  • Oven, the startup responsible for JavaScript runtime, Bun, has raised $7M in a round led by Kleiner Perkins, including participation from Vercel CEO, Guillermo Rauch. Oven plans to provide fast serverless hosting on their own hardware distributed across data centers around the world. Link
  •, one of the hot new distributed application delivery platforms is testing support for managed Redis databases. Link
  • Vercel announced support for WebAssembly in Edge Functions on its serverless platform. Link
  • Amazon is looking to develop Network-as-a-Service and Telco NFVs with a focus on core networking, according to a recent job posting. Link


AMS-IX announced it has signed an MOU with MainOne (Equinix) to launch an internet exchange point in Lagos, Nigeria at MainOne's data center in Lekki. What's interesting about this announcement is that MainOne partnered with Asteroid in 2018 to launch their own IXP, the West African Internet Exchange (WAF-IX), which counts networks from Cloudflare. Edgio, Google, Meta, and Microsoft along with several local African networks as customers. Outside of the US, Equinix is more collaborative and welcoming of competitive internet exchange points than it is in the US, and MainOne's data center is not only hosting its own IXP, but also IXPN, a larger neutral IXP with a distributed footprint across 5+ data centers in the Lagos metro. Why would Equinix, not only add AMS-IX as a strategic partner, welcoming them into their data center to operate an IX but also agree to resell the IX services when they already have their own? Equinix PR AMS-IX PR


  • Mobile analyst, Dean Bubley shared his thoughts on decentralized wireless infrastructure science projects such as Pollen Mobile and Helium. Link
  • DITO, China Telecom's wireless business in the Philippines is making progress and is reportedly on track to reach its 12M subscriber goal by the end of the year, while also seeing the business turn profitable by 2026/2027, according to DITO President, Ernesto Alberto. Link
  • Saudi Telecom (STC) announced its new submarine cable—Saudi Vision Cable—has landed in Jeddah. The cable will have a capacity of 18 Tbps per fiber pair with a total of 16 fiber pairs, four landings in Jeddah, Yanbu, Duba, and Haql. Link
  • In a blog post, an Ericsson product manager says you shouldn't care about latency with 5G. Link

Data Centers

The energy crisis across Europe has data centers increasing fuel capacity for generators in the event generators need to run for longer periods of time. According to reporting by the FT, Equinix has raised capacity of its generator fuel tanks to 90% capacity from normal levels of 60% in preparation of any potential grid disruptions, while Digital Realty said they're doing the same as well as establishing agreements for priority delivery with major European fuel suppliers. The crisis is hitting consumers across Europe much harder, however, and that's driving some countries to take action, like Greece, who vowed to cover ~94% of the increase in power bills for most households next month. Meanwhile, France, who relies on nuclear power plants for most of its electricity saw natural gas availability drop as low as 43% last week. Bloomberg has an overview of initiatives to curb energy usage across Europe.


  • Global Switch reportedly has a shortlist of bidders for its data center business including EQT, KKR, PAG, GAW, and StonePeak according to Bloomberg. Link
  • Columbia Capital and the van Rooyen Family office have established Tract, a new fund to invest in data centers and are currently out raising $ for the fund according to AFR. Link
  • CloudHQ received approval to move forward with the development of a 1.4M SQFT campus in Chaska, just outside of Minneapolis. Link
  • Involta, the Carlyle-backed, msp-focused retail data center operator expanded its facility in the Cleveland metro area. Link

ICYMI: If you’re interested in learning more about hyper-scale data centers and more specifically, the data center industry and digital infrastructure, you should check out the infra/STRUCTURE conference next month hosted by friends of Foundations, Structure Research, in Toronto.

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Further Reading

The evolution of Google’s Jupiter data center network | Google Cloud Blog

Top Goldman Banker Forecasts More Digital Infrastructure Deals - Bloomberg

Mid-year update on 2022 CNCF, Linux Foundation, and open source velocity | CNCF

How Snap used microservices, AWS, and Google Cloud - Protocol

Denver Has Struggled To Draw Big Data Center Campuses, But Signs Indicate That May Be Changing

T‑Mobile Takes Coverage Above and Beyond With SpaceX ‑ T‑Mobile Newsroom

The semiconductor pipe dream? Engineer shortage likely to hamper fab investment effectiveness

YouTube custom Argos ASIC chips are the future for Big Tech - Protocol

5G cloud gaming drives service provider revenue growth - Ericsson

Doubt over tech giants’ €2bn data investment | Ireland | The Sunday Times

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