I still don’t understand this industry’s obsession with predefined fixed limits on unrelated resources. Just because I want lots of RAM, why do I necessarily need lots of disk and/or lots of transfer? Or vice versa, why do I need to pay for lots of tranfer and RAM to get lots of disk? I get that AWS has separate billing for data, but they still tie CPU, RAM and Disk space together, as do most “traditional” VPS hosts.…
With more flexible allocation of resources the pool would start to fragment. Without local disk the defragmentation process would be fairly easy as you could just restart the vm's in another host, but local disk makes this more difficult (or more annoying for the customer).