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Of course not. They are not competing with Digital Ocean / Linode at all.

If that's true, why did Amazon come out with Lightsail?

That's just a card to be in the game, it's hardly their mainline product.

My Lightsail gives me 3TB. It's a huge card for me. The only reason I use them at all for hosting.

Sorry to be blunt, but they don't really care that much about you. Sure, they want to take your money, they don't want to leave it on the table.

But most of their money comes from the Netflixes and the Adobes of the world, not from mom-and-pop stores :p

:-) Well Bezos is a genius, perhaps he will figure out that mom and pop businesses are the backbone of the world economy.

Based on how the AWS services look, I somehow doubt it. Cloud Formation, RDS Oracle, to name a few thing, seem quite enteprise-y :)