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Re:Ask HN: How can DigitalOcean be so cheap? by staunch on Wednesday March 20, 2013 @05:13PM (#5410373)
I run Uptano (https://uptano.com), so I have some experience with this stuff.

We're offering dedicated hardware at really low prices. The biggest reason we can do this is by having really low overhead. Our pricing is competitive with doing it yourself.

Most providers are baking in a lot of additional costs that have nothing to do with the actual cost of your server. Namely employees and centralized hardware infrastructure.

Re:Ask HN: How can DigitalOcean be so cheap? by anonfunction on Friday March 22, 2013 @04:41AM (#5421918)
Each virtual server gets its own internal and external IP address. You pay nothing extra per virtual server.

So I can create hundreds of virtual servers to get the same amount of IP addresses?

With your pricing being so low I have to doubt if you'll be around for long.

Re:Ask HN: How can DigitalOcean be so cheap? by zagi on Friday March 22, 2013 @02:20PM (#5424635)
Even though our pricing is low we still generate profit on every unit that we sell, therefore we will be around for a long time. We have a ton of expertise in the server industry and we've already been around for 18 months. Here's looking forward to the next 18 years :)
Re:Ask HN: How can DigitalOcean be so cheap? by staunch on Friday March 22, 2013 @05:21AM (#5421991)
No, the number of virtual servers per physical machine is limited. "Up to 8 Virtual Servers" for example. Other providers might give you 5+ IPs with a dedicated server, so it's really not extravagant.