---
type: reference
title: Cloud Providers - AWS, DigitalOcean, Hetzner
description: Current best practices for AWS, DigitalOcean, and Hetzner - bootstrapping, IaC, cost, and lifecycle.
tags:
  - aws
  - digitalocean
  - hetzner
  - cloud
  - infrastructure
  - engineering
timestamp: 2026-08-11
verified: 2026-08-28
---
# Cloud Providers

This page compares current (2025/2026) practices for AWS, DigitalOcean, and Hetzner.

## AWS

Use infrastructure as code with Terraform or OpenTofu. Build a landing zone with AWS Control Tower or a `aws-landing-zone` module.

Use these services as the baseline:

* EC2 for compute.
* RDS for managed databases.
* EKS for managed Kubernetes.
* VPC for networking.
* S3 for object storage.
* IAM for access control.

Optimize cost with Savings Plans, Spot instances for stateless work, and Reserved instances for databases.

Set a security baseline with organization SCPs, GuardDuty, Security Hub, and KMS for encryption.

## DigitalOcean

Use Droplets for simple virtual servers. Use the App Platform as a PaaS for containerized applications. Use managed databases for PostgreSQL, MySQL, and Redis.

Use `doctl` as the command-line tool. Use the Terraform provider for infrastructure as code.

Droplets start around $4 per month. DigitalOcean costs more per compute unit than Hetzner but gives a better developer experience.

## Hetzner

Hetzner Cloud offers a strong cost advantage. Compute costs are roughly half or less than DigitalOcean and AWS.

Use the `hcloud` CLI or the official `hashicorp/hcloud` Terraform provider. Manage servers, networks, firewalls, load balancers, and volumes.

Hetzner has fewer regions. It has no managed Kubernetes service and no managed databases. Run k3s, k0s, or Talos for Kubernetes.

Hetzner suits cost-sensitive homelabs, European workloads, and k3s or k0s clusters.

## Provider Decision

| Factor | AWS | DigitalOcean | Hetzner |
|--------|-----|--------------|---------|
| Cost | High | Medium | Low |
| Services | Enterprise | Managed databases | Limited |
| Regions | Many | Several | Few |
| Best for | Enterprise | Developer experience | Cost-sensitive clusters |

## Related Tools

* cloud-init for first-boot configuration.
* Ansible for configuration management.
* WireGuard or Tailscale for private networking.
* Cloudflare Tunnels to expose services without open ports.

## Citations

* [AWS documentation](https://docs.aws.amazon.com/)
* [DigitalOcean](https://www.digitalocean.com/)
* [Hetzner Cloud](https://www.hetzner.com/cloud/)
* [Terraform hcloud provider](https://registry.terraform.io/providers/hetznercloud/hcloud/latest/docs)

## See Also

* [Terraform and OpenTofu](terraform.md)
* [Kubernetes](kubernetes.md)