How long will the prices stay low? $5 is low-end, not mid-tier.
"Investors are really looking for a couple of things... At DigitalOcean, we were able to differentiate ourselves by focusing on the mid-tier market, and catering to the needs of individual developers that were being completely ignored by the larger cloud hosting providers."http://www.forbes.com/sites/danreich/2012/09/19/startup-ceo-...
You raise prices, in this industry, by not lowering them as hardware/bandwidth prices fall, so it's pretty reasonable to think that prices are not going up.
"Investors are really looking for a couple of things... At DigitalOcean, we were able to differentiate ourselves by focusing on the mid-tier market, and catering to the needs of individual developers that were being completely ignored by the larger cloud hosting providers." http://www.forbes.com/sites/danreich/2012/09/19/startup-ceo-...