If all goes well, looks like they might be competing directly with AWS soon.
I have tried Azure, AWS, and DO, and by far the most stable and usable one is Azure. I thought I was the only one who thought Azure was good...
They have linux VMs which is cool, but still not sure I would pick them.
DO is closer to competing with just Elastic Beanstalk and maybe RDS (from the standpoint of a managed RDBM service, not the feature set).
Hu? DO is like EC2, a box on the net with an IP address. Elastic Beanstalk is a PaaS that will auto-scale for you.
Obviously you can't fake some things with just VMs (rolling your own VPC for example is kind of hard to do), but a lot of people don't need Redshift or SQS or any of the amazon SAAS things...