Cloudways is cashing out (acquired by Digital Ocean)

I’d guess Cloudways is cashing out.

It’s too big to evolve with the times and I assume not much market share left to conquer. Instead of spending big money to improve, they sell off their current work for big money…and start a new business elsewhere.

Digital Ocean picks this one up as a lead generator. Much in the same fashion that WP Engine acquired StudioPress.

https://www.cloudways.com/blog/cloudways-joins-digitalocean/

It’s a smart move IMO.

Cloudways had to exit at some point as they can’t possibly grow any further and rewriting their whole product (and code base) would probably lose market share due to upgrade friction. Digital Ocean on the other hand pays a one time price for a respectable name and leverages it to sell recurring-revenue products (servers).

What happens to both companies?

Cloudways is effectively dead if you ask me. I don’t see Digital Ocean improving it (same way how WP Engine didn’t do much with StudioPress/Genesis Theme). How the heck does the original product grow when the soul behind it has moved onto something else? Need we be reminded that Cloudways was acquired for its CUSTOMERS rather than its PRODUCT?

Digital Ocean, I’m more worried about. Their recent big moves, like this acquisition and the price hikes, suggest either one of two things. Either they’re doing really well and making aggressive plays to leverage their market position. Or their growth is stagnant (for their liking) and they’re desperate to try anything.