[upupandup]

Thanks this was the information I was looking for and glad I won't be moving off AWS Lambda anytime soon.

Really puzzling why DO would announce a new product and make it more expensive than incumbents.

Typically, you would want to undercut existing competitors right out of the gate because your competitors will do it for you....by making the first move to reduce their prices, diminishing your own market.

Perhaps there is some other lining here but I don't understand how you launch a serverless hosting and make it more expensive than AWS.

[unethical_ban]

Cost isn't everything, especially at low rates. UI, tooling, and even the "it isn't Amazon" tax. AWS can be complicated for small deployments.

Also, they may be charging their best profitable/break-even rate right now, working on the product to get cheaper over time or with scale.

Basically, I challenge the implication that one should not enter a market unless they are cheaper than the competition.

[impulser_]

Because they want to be a profitable and cash flow positive company

They don't want to be like most of the other cloud infrastructure companies like Cloudflare that are burning a lot of cash to look cheap. Eventually they will have to increase prices too.

AWS, Azure, GCP get the advantage of having contracts with big technology companies that they can oversell their products too to help make up for the loses they have from basic users. It a lot easier to sell junk to big corporations to increase revenue than it is for DigitalOcean to do the same for SMB and start ups.

[erikerikson]

Guess: it's for existing DO users, not for attracting new users. Lock in is very real and for most users mostly fine.