Amid Uncertain Economic Forecast DigitalOcean Report Finds SMBs are Optimistic

Rhea-AI Summary

DigitalOcean Holdings, Inc. (NYSE: DOCN) released its bi-annual Currents report, highlighting positive sentiments among small-to-medium businesses (SMBs) for 2023. Despite economic uncertainties, 63% of respondents feel optimistic about the year, and 79% foresee a good outlook for the next three years. The report shows a growing reliance on cloud solutions, with 61% of SMBs increasing spending on cloud infrastructure, driven primarily by cost savings. A significant 84% believe technological investments will help future-proof their businesses.

Positive

• 63% of SMBs feel positive about the economic outlook for 2023.
• 61% of respondents have increased their cloud computing infrastructure spending.
• 57% cite cost savings as the main reason for migrating to the cloud.
• 84% believe investing in technology will help future-proof their operations.

Negative

• 31% of SMBs report the economy has had no impact on their business, suggesting potential stagnation.

63% feel positive about the outlook for 2023; 79% feel positive about the next three years

NEW YORK--(BUSINESS WIRE)-- DigitalOcean Holdings, Inc. (NYSE: DOCN), the cloud for developers, startups and small-to-medium sized businesses (SMBs), today announced the findings of its bi-annual Currents report.

While economic growth is forecasted to continue to slow in the coming years, 31% of SMB respondents say the economy has had no impact on their business, while 15% say it has impacted them positively.

“In these uncertain economic conditions, it’s assumed that smaller organizations will need to cut their IT spend to survive, but they’re actually turning to tech to make their operations as efficient as possible,” said Yancey Spruill, CEO of DigitalOcean. “SMBs and startups are continuing to invest in the technology that will help them weather the current economic climate. We expect to see the migration to cloud continue to accelerate due to the simplicity and low cost that it offers.”

Additional key findings of the Currents report include:

• Reliance on the cloud is increasing. With 61% of respondents saying their spend on cloud computing infrastructure has increased.
• Cost savings is the top motivator for SMBs migrating to the cloud. With a 57% increase in their reliance on cloud solutions, cost savings is the biggest motivator for those who have migrated and those who haven’t migrated.
• SMBs are still preparing for upcoming business challenges. Going into 2023, SMB and startup owners say economic uncertainty and meeting revenue targets are their top two areas of focus with ensuring technology solutions meet the needs of customers rounding out their top three priorities.
• Future-proofing their business is a priority. 84% of companies believe that investing in technology will help them prepare their businesses for the future, including investments in automation/self-service, cloud computing and managed services.

Read or download the full report here: https://www.digitalocean.com/currents/.

Methodology

The Currents report is based on a sample size of 554, 70% of whom identify as CEO, founder, or owners, and 23% who identify as CTOs. Respondents represent 76 countries, with 27% being in the United States, 8% in the UK, 5% in India, 5% in Germany, and 5% in Canada. Respondents came from a range of digital industries, with 37% being in the software/Software as a Service, 19% technology consulting, 6% marketing/advertising, 4% eCommerce, and 6% other technology industries. The questionnaire was developed by DigitalOcean and was distributed via link through email and social media channels to both DigitalOcean customers and non-customers.

About DigitalOcean

DigitalOcean simplifies cloud computing so builders can spend more time creating software that changes the world. With its mission-critical infrastructure and fully managed offerings, DigitalOcean helps developers, startups and small and medium-sized businesses (SMBs) rapidly build, deploy and scale applications to accelerate innovation and increase productivity and agility. DigitalOcean combines the power of simplicity, community, open source and customer support so customers can spend less time managing their infrastructure and more time building innovative applications that drive business growth. For more information, visit digitalocean.com or follow @digitalocean on Twitter.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221208005041/en/

Media

Spencer Anopol

press@digitalocean.com

Investors

Rob Bradley

investors@digitalocean.com

Source: DigitalOcean

FAQ

What were the key findings of DigitalOcean's Currents report for 2023?

The report revealed that 63% of SMBs are optimistic about 2023, with 61% increasing cloud spend due to cost savings.

How does DigitalOcean (DOCN) report on the economic sentiment of SMBs?

The report shows that 79% of SMBs have a positive outlook for the next three years.

What motivates SMBs to migrate to cloud solutions according to the Currents report?

Cost savings is the top motivator, influencing 57% of respondents either migrating or planning to migrate.

What percentage of SMBs believe in investing in technology for future preparedness?

84% of SMBs believe that investing in technology is crucial for future-proofing their businesses.