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PostPosted: Tue Jan 15, 2013 2:40 pm 
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AOL: takumisai
Love Linode, massive fan and advocate for many years but we're considering moving our VM's to Digitalocean.com. They've got great reviews, awesome control panel, SSD's for all plans, all for about 25% of the price. What makes Linode so much better that they are worth 4x the amount? The only obvious point I know of is that Digital ocean currently only have two physical locations - NYC and Amsterdam.

I'm not looking to put Linode down, they have been incredibly reliable and helpful, I'm just trying to make an informed decision.


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PostPosted: Tue Jan 15, 2013 2:55 pm 
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Q: Do you limit bandwidth?
A: No we do not limit monthly bandwidth in anyway. We allow you to fully utilize the network and burst traffic without limits.


Yeah, that always works out well because nobody would ever think of abusing that and hogging all the bandwidth for themselves.

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PostPosted: Tue Jan 15, 2013 2:58 pm 
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It does look fairly legit from a glance ... would love to see more reviews. The pricing is quite attractive if it proves reliable ...


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PostPosted: Tue Jan 15, 2013 3:05 pm 
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deadwalrus wrote:
It does look fairly legit from a glance ... would love to see more reviews. The pricing is quite attractive if it proves reliable ...


Yes, they're definitely legitimate - See below.

http://techcrunch.com/2012/08/09/startup-accelerator-techstars-showcases-eleven-new-startups-at-boulder-demo-day/
http://thenextweb.com/apps/2012/08/24/digitalocean-these-champions-open-web-focus-cloud-hosting-middle-market/
http://pandodaily.com/2012/08/14/amazon-may-own-the-skyscrapers-of-cloud-hosting-but-digitalocean-is-looking-to-own-main-street/
http://www.forbes.com/sites/danreich/2012/09/19/startup-ceo-ben-uretsky-on-launching-digital-ocean-raising-money-and-joining-techstars/
http://venturebeat.com/2012/08/09/techstars-boulder-demo-day-from-cloud-hosting-to-co-working-on-steroids/


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PostPosted: Tue Jan 15, 2013 3:08 pm 
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imo just because they're sponsored by a vc doesn't mean they're legit.

in fact, I would be more worried than in 6 months or so they would get sold out to some other company.

i would also be weary as they're hitting all the keywords (cloud, ssd, unlimited bw, pay-as-you-grow, etc)

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Last edited by kbar on Tue Jan 15, 2013 3:11 pm, edited 1 time in total.

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PostPosted: Tue Jan 15, 2013 3:09 pm 
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vonskippy wrote:
Q: Do you limit bandwidth?
A: No we do not limit monthly bandwidth in anyway. We allow you to fully utilize the network and burst traffic without limits.


Yeah, that always works out well because nobody would ever think of abusing that and hogging all the bandwidth for themselves.


Yes, I agree. One of the owners does address this in the comments on Hackernews - http://news.ycombinator.com/item?id=5059723 - Basically they will be implementing a soft cap in the 2-5TB range.


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PostPosted: Tue Jan 15, 2013 3:14 pm 
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kbar wrote:
imo just because they're sponsored by a vc doesn't mean they're legit.

in fact, I would be more worried than in 6 months or so they would get sold out to some other company


Depends on what you mean by 'legit'. I only provided the links to add some credibility and background. imho they are less likely to be 'fly-by-nighters' or deceptive/dishonest with a big name behind them but its certainly possible and I would be cautious myself.


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PostPosted: Tue Jan 15, 2013 3:15 pm 
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If it sounds too good to be true, it probably is.

$5 per month for a VPS with SSDs and unmetered gigabit connections?

No, that's not legit. Even OVH isn't selling unmetered gigabit connections anywhere remotely that cheaply, and OVH's entire purpose is to be disruptive to the market by leveraging their massive size to undercut the competition.

Looking at some actual benchmarks, their performance is pretty poor too. 8MB/s on SSDs? Yikes.

Selling unmetered gigabit connections for $5 per month means you won't be in business for long.

EDIT: This sort of offering is practically the definition of fly-by-night, because you're selling your product so far below cost.


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PostPosted: Tue Jan 15, 2013 3:33 pm 
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I'm trying the free trial. I have a $21.25 credit on my account, $1.25 just for signing up and $20 from a code in the HN thread.

I get ~6.5MB/s downloading the Newark Linode speed test file to a 'NYC' droplet.

And the disk looks good to me -

# dd if=/dev/zero of=/tmp/foo bs=1024k count=10240
10240+0 records in
10240+0 records out
10737418240 bytes (11 GB) copied, 42.8255 s, 251 MB/s

(/tmp is not mounted on RAM)


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PostPosted: Tue Jan 15, 2013 3:51 pm 
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> benchmarks are everything

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PostPosted: Tue Jan 15, 2013 4:12 pm 
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Promised: 1000 megabits per second.
Delivered: 52 megabits per second.

Beyond the obvious problem with the throughput, benchmarks aren't necessarily the concern, so much as the whole "impossible to make a profit if they deliver what they promise" issue.


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PostPosted: Tue Jan 15, 2013 5:16 pm 
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Guspaz wrote:
Promised: 1000 megabits per second.
Delivered: 52 megabits per second.

Beyond the obvious problem with the throughput, benchmarks aren't necessarily the concern, so much as the whole "impossible to make a profit if they deliver what they promise" issue.

It's a marketing tactic: Offer steep discounts to build up a reputation then start increasing prices as they become a known commodity. Pretty typical, particularly for Y-combinator ventures.


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PostPosted: Tue Jan 15, 2013 5:24 pm 
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deadwalrus wrote:
It's a marketing tactic: Offer steep discounts to build up a reputation then start increasing prices as they become a known commodity. Pretty typical, particularly for Y-combinator ventures.

If so, it's a BAD marketing tactic for their business model.

Any knowledgeable VPS host would know that saying "Unlimited" is the sure mark of either scam or incompetence.

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Security thru obscurity is a myth - and really really annoying.


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PostPosted: Tue Jan 15, 2013 7:04 pm 
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Quote:
If so, it's a BAD marketing tactic for their business model.

Any knowledgeable VPS host would know that saying "Unlimited" is the sure mark of either scam or incompetence.

I dunno about that. I mean, we're talking about it.

I would consider switching if they prove to provide a consistent service. To be honest, we haven't seen much in the way of lowered prices or hardware upgrades around here in the last few years. Last RAM upgrade was summer 2010, and I wouldn't consider a 40% disk space increase over the last two years anything to jump up and shout about. It's starting to become noticeable on the RAM / disk front.


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PostPosted: Tue Jan 15, 2013 7:29 pm 
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Linode might be a bit behind the curve in terms of passing on savings through dropping costs, but DigitalOcean is selling services at "scam warning bell" pricepoints. It's impossible to sell and deliver unmetered gigabit connections for $5 and not take huge losses. Either performance must be degraded (best-effort type scenario) or the price must be raised.

It's not clear what exactly they're promising. They say "All servers come with 1Gb/sec. network interface." Does that mean every cloud server, or every physical host? If it's every cloud server, how do they fit that many gigabit interfaces into a single physical host? If it's every physical host, then how do they make any kind of guarantee about performance?

They're selling these things as SSD-based. I've never seen SSD pricing, individually or in bulk, go much below $0.50 per gigabyte (and enterprise-grade is often much higher), so at $5/mth, it would take them two months just to cover the cost of storage, let alone the cost of bandwidth or the servers themselves...

Their benchmarks from what I've seen are already very low-end, and bandwidth performance is already rather lackluster. I'd much rather be on a platform like Linode that promises me a reliable amount of performance in a fixed quantity (like my 200GB of bandwidth) rather than a platform like DigitalOcean that says "free bandwidth" but doesn't really say if I'll get 1 megabit or 1000 megabits per second.


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