Technically
AI Reference
Your dictionary for AI terms like LLM and RLHF
Company Breakdowns
What technical products actually do and why the companies that make them are valuable
Learning Tracks
In-depth, networked guides to learning specific concepts
Posts Archive
All Technically posts on software concepts since the dawn of time
Terms Universe
The dictionary of software terms you've always wanted

Explore learning tracks

AI, it's not that ComplicatedAnalyzing Software CompaniesBuilding Software ProductsWorking with Data Teams
Loading...
I'm feeling luckyPricing
Log In

What does DigitalOcean do?

DigitalOcean is an independent infrastructure as a service provider; you can think of them as AWS or GCP, but for the people.

Last updated Jun 18, 2026devops
Justin Gage
Justin Gage
Read within learning track:Analyzing Software Companies

The TL;DR#

DigitalOcean is an independent infrastructure as a service provider; you can think of them as AWS or GCP, but for the people.

  • DigitalOcean rents out servers (and software on those servers) to developers building applications on the web
  • Unlike AWS, GCP, or Azure, DigitalOcean is a standalone company not owned by a massive trillion dollar tech giant
  • DO made a name for themselves by prioritizing simplicity and **user experience **instead of sheer power and number of products

DigitalOcean went public in 2021 and did over $500M in revenue last year, so they’re far from a small company. But as we’ll see, they approach things a bit differently than your average cloud provider.

Note: I am a former DigitalOcean employee but do not currently own and have not ever owned any shares.

Terms Mentioned

UI

Frontend

PaaS

SSH

Server

Cloud

Infrastructure

Networking

Terminal

Linux

Database

Operating System

Kubernetes

Companies Mentioned

DigitalOcean logo

DigitalOcean

PRIVATE
Elastic logo

Elastic

ESTC
AWS logo

AWS

AMZN

A quick refresher: what’s a cloud provider?#

A cloud provider gives developers a place to run their apps instead of doing it themselves.

🧠 Jog your memory

Want a refresher on what the cloud is, and how developers use it? Check out the Technically post on cloud and also, perhaps, if you’re feeling spicy, the Technically post on web apps.

Nobody says it better than myself, from the Technically post about AWS:

There are basically two ways to run an app - locally or over the internet. In the “old” days (i.e. high school), most apps ran locally - you’d get a copy of Excel via a CD, or download it from the web. All of the computing that Excel did - both the “graphical” frontend you interacted with, and all of the math that happened behind the scenes - took place on your laptop. Even if Excel did sometimes communicate with the web, it was only to pull in a data source and get updated. You usually paid a one time fee to buy the software, or licensed it yearly.

Things have changed a lot since then. Now, most software runs over the internet - you access it via your browser. And even if there’s a desktop app, a lot of the hard work is getting done via the internet. So what does it mean exactly for an app to run on the web?

Loading image...

Cloud-based apps have most of their code deployed on a big, powerful server in someone’s data center – not on your computer. So when you type a URL into your browser, you’re accessing that server over the web. And when you interact with an app – like sending an email in Gmail, or deleting a Tweet on Twitter – you’re again communicating with that server and sending it some work to do.

If a company is really big, or in the less likely scenario that they’re small but have very tight security requirements, there’s a chance that they’ll buy their own servers, set them up in a warehouse somewhere, network them together, and get them on the web. This is what everyone did before AWS existed, actually. But today, most developers don’t want to do that, and instead pay someone like DigitalOcean to do it for them. And thus, we have the cloud.

The basic DigitalOcean product#

We’re going to take a look at what the DigitalOcean UI looks like in a bit, but first, it’s worth breaking down the different types of things that cloud providers like DO offer. You can generally split software into 3 categories:

  1. Infrastructure as a service – low level, basic servers with operating systems. You need to install any software you want to use and configure accordingly.
  2. Platform as a service – some of the process of installing, configuring, and maintaining software is managed for you.
  3. Software as a service – you don’t think about infrastructure at all. Think: Gmail, Twitter, Salesforce.

You can read more about these categories in depth in the aforementioned post. Cloud providers like DigitalOcean started by offering just #1, but have expanded to offering #2, and in rare cases, even #3. Keep an eye on these categories as we talk through the popular parts of the DO product offering. And for each product, note how simple and straightforward the process is compared to a more powerful, complex product like AWS.

Our journey begins on the homepage, where you can see a clean view of every different type of server that you have running and what its status is (note: there is no page of this according simplicity on AWS).

Loading image...

In my case I have two Droplets, one Space, and one Kubernetes Cluster. What are those? Keep reading!

1. The OG: Droplets#

The Droplet was DigitalOcean’s first product and is still the most popular one today. It’s your basic rented server in the cloud that you can run anything on, from a web application to a database.

Loading image...

To create a new Droplet, you just need to pick a few things:

  1. Where do you want it? DigitalOcean has data centers in New York, San Francisco, Amsterdam, and many other places around the world.
  2. What image (template) do you want? You can pick versions of popular operating systems like Linux, use a custom one that you upload, or even an entire pre-configured app with software already installed via their Marketplace .
  3. **How big and strong do you want it? ** You can pick from different sizes of Droplets, and different configurations optimized for different types of applications. Bigger ones cost more.
  4. How do you want to access it? You can pick from your existing SSH keys, which you can think of as your ID Card, to log into your server with.

That’s basically it, minus a few small tweaks here and there. You don’t need to be an expert in the DigitalOcean ecosystem to understand what any of these things mean. And the total price, both monthly and hourly, of your chosen configuration is frozen on the bottom of your screen:

Loading image...

Once you create your Droplet, you get a nice screen with details about it, how it's performing, and the ability to make chances like adding new SSH keys or storage options.

Loading image...

By the way, you can create and manage your Droplets from the command line (your Terminal) too, not just from the web UI.

2. Droplet support: Volumes, Spaces, Backups, Snapshots, etc.#

Because the Droplet is the central currency in the DigitalOcean universe, most of the other products in the ecosystem are mostly supporting that Droplet. In no particular order:

  • Volumes let you attach permanent storage to your Droplet. It’s like the hard drive on your computer. So when your Droplet goes to sleep, or you destroy it, you don’t lose all your data.
  • Spaces let you store objects, like videos, images, and files, and easily access them later on.
  • Backups and Snapshots let you backup your Droplets in case anything happens to them.
  • Load Balancers let you distribute traffic among different Droplets so no individual one gets overwhelmed on your app’s popular days.
Loading image...

There’s more to cover here, but you get the gist. Each one of these add-on products costs money, usually in consonance with how much you’re using.

3. PaaS: apps, databases, K8s#

Since Droplets, DO has invested a lot in platform-as-a-service (PaaS). As a refresher, these kinds of products go beyond just a simpler server and automate some of the tedious parts of infrastructure management: usually things like installing software, networking servers together, and upgrading and maintaining said software.

DigitalOcean’s first managed service was Databases, which they released right around when I started there. Instead of installing, running, and managing your own database on a Droplet, you can pay DO extra to do that for you. Creating it is straightforward:

Loading image...

You pick your location, pick your database, and then decide how big and powerful you want the underlying servers to be. DO automatically installs the database software, takes care of backups, upgrades to new versions, and other nice stuff. Most startups I’ve worked at have opted for a managed database option like this (AWS’s equivalent is RDS) instead of doing it themselves.

⛓️ Related Concepts

If you’re heard of companies like Supabase and PlanetScale and wonder where they fit in, they’re basically independent alternatives to something like DigitalOcean’s managed database service. Their offering is usually more feature rich since the whole company is focusing on databases, while DigitalOcean’s managed databases is one of many products they support.The other managed services that DO offers – Kubernetes, serverless functions, and apps (think Heroku) – are similar in nature. DO Kubernetes in particular is impressively easy to get started with (even I was able to do it).

What makes DigitalOcean different#

So far, this post might sound very similar to one I could have written about any other cloud provider. And that’s true! But what makes DigitalOcean different is their focus on simplicity and user experience. They want the experience of creating a Droplet – or even an entire Kubernetes cluster – to be easy and simple, and they spend a lot of time and effort making that happen. This comes with a tradeoff though, which we’ll see in a bit.

For an illustrative example, let’s go back to the screen for creating a Droplet, the basic server in DigitalOcean’s cinematic universe. The equivalent to a Droplet in AWS is EC2, which is short for Elastic Compute Cloud. Here’s the Droplet create screen, in full scroll:

Loading image...

And here’s the corresponding page for AWS’s EC2:

Loading image...

Compared to creating a Droplet, creating an EC2 instance is comically complicated. There are 100 things to configure on the screen, each with some proprietary, poorly explained name. And it’s not entirely clear what the pricing consequences are of any particular choice.

It’s not that AWS can’t make something simple – obviously it’s better for something to be easy to use than hard to use – it’s that they’re focusing on a different clientele. For most AWS users, the power and flexibility of those 100 different options is exactly why they’re there. And in many cases, DigitalOcean’s products don’t have what those developers need. So I like to think of it as more of a “different strokes for different folks” kind of thing.

For that reason (among others, like reliability issues), DigitalOcean has had a mixed reputation when it comes to being a “serious” cloud provider. Most of their business has historically been driven by individual developers running smaller projects on Droplets, often just a simple blog or VPN. Over the past few years, they’ve been trying to move upmarket with more managed services and important underlying features like VPCs.

Up Next
What does Cloudflare do?

Cloudflare provides networking tools that help companies distribute their apps globally and securely.

What does Heroku do?

Heroku was and is one of the first cloud platforms as a service (PaaS).

What does Vercel do?

Vercel builds a frontend-as-a-service product – they make it easy for engineers to deploy and run the user facing parts of their applications.

Content
  • All Posts
  • Learning Tracks
  • AI Reference
  • Companies
  • Terms Universe
Company
  • Pricing
  • Sponsorships
  • Contribute
  • Contact
Connect
SubscribeSubstackYouTubeXLinkedIn📞Call for advice
Legal
  • Privacy Policy
  • Terms of Service

© 2026 Technically.