- Virtualization: KVM
- Linux servers: Ubuntu, Fedora, Debian, CentOS
- Non-Linux servers: FreeBSD & custom
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DigitalOcean has a control panel that's intuitive and easy to use, new servers (Droplets) can be spun up in under a minute and they offer stock "apps" (LAMP, RoR, Wordpress) that can be deployed instantly. There's also an extensive documentation for people new to VPS.
Pro Pay-as-you-go with multiple payment options
Billing is done per hour. Each month has a 672 hour (28-day) billing cap with server runtime past that point being free of charge. DigitalOcean accepts payments via Visa, MasterCard, American Express, Discover, and PayPal.
Pro Flexible backup mechanism
Automatic backups can be made for 20% of the droplet price and an unlimited amount of snapshots at $0.02 per GB of storage can be made manually.
Pro Competetive starter-level pricing
With pricing that starts at $5/month. It's a pretty cheap VPS provider.
Pro Good API
DigitalOcean has an API for creating and destroying droplets and replicating droplet control panel functionality. The API is RESTful, uses oAuth, supports IPv6 and comes with an extensive documentation.
Pro (New) Block Storage Volumes
You can now attach dynamic distributed (assuming SAN) storage to a droplet. Multiple droplets cannot attach to the same volume. The storage is very affordable and there are easy to follow how-to guides.
(as of writing, only in certain datacenters)
Con No DDoS protection
When Digital Ocean detects what they think may be a DoS attack, they will cut traffic to the droplet to avoid performance drops to neighbors etc. This means if your droplet comes under attack, or appears to be under attack, it will be disconnected from the network, effectively down.
Con Setup is not as fast as advertised
A person who wants to set this up, set that up, configure this and so forth - and who has minimal time pressures would be okay. But the time it takes to be set up can be crucial for people who want to get up and running as fast as possible.
Con Don't accept Bitcoin yet
Even though it's one of the most voted suggestions on their customer feedback website, DigitalOcean does not accept any crypto-currency payment methods.