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Well DO is advertising 1tb for $5 because they expect most people not to hit that rate or that price would quickly skyrocket. AWS is just taking the pricing sc

Well DO is advertising 1tb for $5 because they expect most people not to hit that rate or that price would quickly skyrocket. AWS is just taking the pricing scheme of pay for what you use (granted there is still a premium on every thing they charge you for)

adventured 13y ago
That's not accurate. DO's bandwidth is simply cheap, it doesn't matter what tier you go with or how much you use. The $5 plan is merely a convenient illustration, as they embarrass AWS on bandwidth cost across the board. At $0.02 per gb on overages, it's six times cheaper than the 10tb AWS tier. To match DO with AWS on bandwidth cost, you need to burn a few petabytes. 10tb on AWS? $1,200. Given how cheap bandwidth is these days, that's beyond outrageous. Amazon is charging for bandwidth roughly a hundred times what it costs them. Now let's say you're actually heavy utilizing DO, so you've got one of their bigger plans and burn up plenty of bandwidth. Their $480 plan comes with 8tb, and the extra 2tb (to match 10tb on AWS), will cost you a mere $40. 16 cores, 48gb of ram, 10tb of bandwidth, for $520. Of course it's understood people use AWS for reasons other than price.
- catinsocks 13y ago
  Idk about the pricing but can you use all that bandwidth in a reasonable time period? Can DO's pipes handle a sustained load of whatever a 16core 48gb ram machine can handle without their pipe being the bottleneck? If not maybe that is part of the reason AWS can charge so much for bandwidth.
- pipeep 13y ago
  I'd expect DigitalOcean's bandwidth is still at quite a bit of a profit. I run a reliable Tor relay with a 12TB allocation for $7/mo, admittedly from a sketchy provider, of which I use almost the entire allocation. My main hosting provider (for my website, email, etc) sells shared gigabit bandwidth at $2.50/TB, half DO's price, which they apparently still make a profit on. On top of that, DO is doing this on a much larger scale than many of these other companies, which should allow them to obtain better prices.

adventured 13y ago

That's not accurate. DO's bandwidth is simply cheap, it doesn't matter what tier you go with or how much you use. The $5 plan is merely a convenient illustration, as they embarrass AWS on bandwidth cost across the board. At $0.02 per gb on overages, it's six times cheaper than the 10tb AWS tier. To match DO with AWS on bandwidth cost, you need to burn a few petabytes. 10tb on AWS? $1,200. Given how cheap bandwidth is these days, that's beyond outrageous. Amazon is charging for bandwidth roughly a hundred times what it costs them. Now let's say you're actually heavy utilizing DO, so you've got one of their bigger plans and burn up plenty of bandwidth. Their $480 plan comes with 8tb, and the extra 2tb (to match 10tb on AWS), will cost you a mere $40. 16 cores, 48gb of ram, 10tb of bandwidth, for $520. Of course it's understood people use AWS for reasons other than price.

catinsocks 13y ago
Idk about the pricing but can you use all that bandwidth in a reasonable time period? Can DO's pipes handle a sustained load of whatever a 16core 48gb ram machine can handle without their pipe being the bottleneck? If not maybe that is part of the reason AWS can charge so much for bandwidth.
pipeep 13y ago
I'd expect DigitalOcean's bandwidth is still at quite a bit of a profit. I run a reliable Tor relay with a 12TB allocation for $7/mo, admittedly from a sketchy provider, of which I use almost the entire allocation. My main hosting provider (for my website, email, etc) sells shared gigabit bandwidth at $2.50/TB, half DO's price, which they apparently still make a profit on. On top of that, DO is doing this on a much larger scale than many of these other companies, which should allow them to obtain better prices.