Comment by jm4

That's good to know. Still, I'm stuck on that little instance. Scaling it means an exorbitant price increase. I would just leave for another provider at that point - and maybe that's what they're going for. They're not kicking people out immediately but making it uncomfortable to stay.

I would hypothesize that there's a lot more customer churn at the lower price points than there is in the higher tiers and when you get into dedicated servers. You're dealing with people who spin up a cheap VPS, mess around with it for a while and then delete it. Or maybe the kinds of customers whose payment card expires and they don't bother to update it because they're not using that $7 VPS for that little pet project they forgot about. Payments fail and then the VPS runs for a few more weeks before they finally have to delete it due to non-payment.

Higher prices filter out the unserious people who are a higher risk for churn. What they're left with is bigger customers with bigger footprints who lock in long term rates.

Of course, this is pure speculation on my part.