Are the cloud hosting services profitable at these very low prices or are they reducing the prices just to gain market share? If it is the latter, sooner or later they have to increase prices, no?
I would imagine most clouds will have to be pushing towards primitives (store, compute, network) being lost leaders. margins are on value-add services (software), deploy, monitor, scale etc.
Linode has been around long enough (15 years) that I can't imagine they're operating at a loss. Their prices also haven't been nearly as dirt-cheap as other providers.