Is DigitalOcean overpriced? What's the new alternative?

DigitalOcean is one of the most popular VPS providers in the world.  DigitalOcean is known for having a super-fast cloud computing cluster, with lightning-fast SSD's and a fast network.  But is it overpriced?

Let's take a look at their VPS's, or as they call them, Droplets.

Balanced virtual machines with a healthy amount of memory tuned to host and scale applications like blogs, web apps, testing and staging environments, in-memory caching, and databases. Learn more

MemoryvCPUsTransferSSD Disk$/HR$/MO

As we look at the first plan, we can see the RAM for it isn't the best, but it is acceptable for $5/mo, slightly overpriced, but again, still acceptable.  Now we look at the disk, it is 25GB Disk for $5/mo, you can get 300GB HDD with an SSD Boost for less than $5/mo at places like Contabo, meaning it is overpriced.  Your data transfer bandwidth will also be limited by DigitalOcean to 1TB for the first plan, which is also overpriced, as a majority of other companies offer unlimited data transfer for no extra cost, but if we go to the other majority of VPS Hosting companies, they do have a data transfer limit, and an even more limited one.  Now, let's look at the 16GB RAM Plan, this is very overpriced.  They also still limit your data transfer, and they only give you 320GB of Disk space, as you are paying a ridiculous $80/mo for this.  Let's look at Contabo now, a VPS Provider, their biggest VPS plan is about $30/mo, and it has 60GB RAM, 1.6TB SSD Disk Space, 1GBPS Bandwidth with unlimited data transfer, and very good DDOS Protection.  As we look at that difference, most likely any person you show a comparison between DigitalOcean and Contabo to, would use Contabo over DigitalOcean.  DigitalOceans "General Purpose Droplets" are even more overpriced.  Take a look at just their first plan:


It's way more overpriced than their "Standard Droplets", and there is almost no difference.  You're paying $60/mo for even less disk space, 25GB SSD.  If you need a cheap VPS, and you thought of using DigitalOcean, after reading this blog post, you might want to use Contabo instead, but this is completely your decision.