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8GB RAM, 200GB SSD for $11.99 is significantly cheaper than linode's 8GB RAM 96GB SSD for $40. Then again all of linode's plans are cheaper than Digital Ocean's. I am curious if this price gap is due to the cheaper ARM SoC ?

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They just have higher margins. Look at OVH [0] for example, they offer not only ARM SoCs but X64's for the same price and performance.

[0]: https://www.ovh.de/virtual_server/vps-ssd.xml

The hardware is cheaper, but most importantly it consumes much less power.

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