You do have to be careful though. VPS offering is a pretty easy business to get in, and there are no shortage of people operating out of the proverbial "parents basement".

I've had some weird stuff from cheap providers including being down for days with no response, sudden price increases and having them go out of business all the sudden. Even for hobby projects it sucks having to chase people around set everything back up. I have found a couple more bucks a month to deal with a larger company that's it for the long haul to be money well spent.