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Re:Tell HN: Digital Ocean will start collecting fees for bac... by jrs235 on Thursday January 29, 2015 @05:33PM (#8969331)
Lets break this down...

$5 for 20Gb droplet so $1.25 for backups.

Assuming shadow copy backups (no compression, just straight bit for bit) then 4 backups times 20Gb is 80Gb. 80Gb of AWS S3 storage on the most expensive tier is $.03 / Gb which would be $2.40 if backed up to S3.

I agree it's not THAT crazy.

Re:Tell HN: Digital Ocean will start collecting fees for bac... by Someone1234 on Thursday January 29, 2015 @05:35PM (#8969343)
Devil's advocate but you could push that to Amazon's Glacier storage. Also Amazon charge for bandwidth in addition to the storage cost.
Re:Tell HN: Digital Ocean will start collecting fees for bac... by jrs235 on Thursday January 29, 2015 @05:53PM (#8969420)
Yes you could which would reduce the price for AWS storage (highest priced tier is $.03/GB for S3 and $.01/GB for glacier).

I mention in another comment the cost of bandwidth.

To play devils advocate... I assume (and hope) that when you need to restore a droplet from a backup that it a LOT more seamless and streamlined than trying to restore from AWS S3 or Glacier.