Why do $5 VPS offerings still have the same specs as 10 years ago?

Question

2012: Digital Ocean (or equivalent) offered VPS's with 1gb RAM and 20gb disk for $52020: $5 still gets you at most 1 vCPU, 1gb RAM, and 20-50gb SSD.Why is there no price innovation happening? Cloud offerings seem to be static, despite cost reductions and other progress.

aritmo · Accepted Answer

They do not have the same specs. They have slightly reduced specs.You can no longer get a $5 VPS with 50GB SSD, 2GB RAM, and two vCPUs.

eberkund · Answer

The $5 droplet used to be 512MB of RAM not 1GB AFAIK

Why do $5 VPS offerings still have the same specs as 10 years ago?

2012: Digital Ocean (or equivalent) offered VPS's with 1gb RAM and 20gb disk for $5
2020: $5 still gets you at most 1 vCPU, 1gb RAM, and 20-50gb SSD.
Why is there no price innovation happening? Cloud offerings seem to be static, despite cost reductions and other progress.

They do not have the same specs. They have slightly reduced specs.
You can no longer get a $5 VPS with 50GB SSD, 2GB RAM, and two vCPUs.

The $5 droplet used to be 512MB of RAM not 1GB AFAIK