The biggest threat to DigitalOcean is that AWS, Google, and Microsoft are all going vertical by designing and manufacturing their own chips. Over times they'll be able to get hardware for cheaper, and also more specialized hardware that uses less power.
DigitalOcean will have to buy CPUs from Intel or Nvidia/ARM at a higher cost, and eventually maybe even from AWS or Microsoft, essentially giving money to their competition.
If DigitalOcean doesn't get into semiconductors quickly, the only two logical outcomes are to either go bust, or to be acquired by a major cloud provider as a low-cost branch, like airlines do.
DigitalOcean will have to buy CPUs from Intel or Nvidia/ARM at a higher cost, and eventually maybe even from AWS or Microsoft, essentially giving money to their competition.
If DigitalOcean doesn't get into semiconductors quickly, the only two logical outcomes are to either go bust, or to be acquired by a major cloud provider as a low-cost branch, like airlines do.