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So am I going to be paying $2.50/month for my existing 512MB instances, or is it going to be charging me $5? I don't see anything either in the article or on DO's blog about it, nor anything on their pricing page.

Edit: So I guess it's still $5/month. https://twitter.com/digitalocean/status/953304176280432646

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Yeah, would have been sweet to downgrade my pricing from 10 to 5$ keeping the specs, but it's not possible due to the fact that the disc is 30 GB and not 25. That's not nice, I'd gladly give back the 5GB. Guess I'll spend a night making a new server and putting everything into place again. Or perhaps I'll wait until Ubuntu 18.04 hits... Anyway, the new prices are nice. 512 was always a bit on the small side, 1 GB of RAM is more than enough for a personal server with NextCloud, some websites and a mail server.

When Linode upgraded its packages, I've done migrations to go back to the original specs at the lower price. Luckily they let you scale and rebuild pretty easily, but it usually entails migrating to get the upgrade, then migrating a second time to downgrade again.. :-D

This is partly how these providers manage to persuade customers to upgrade (which could be to a new machine behind the scenes). Linode does the same.

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