I have found a cheap vps solution to cover my needs. Reading through the policies of the vps service, I found that they state "CPU usage should not exceed 70%". Is there a way to prevent this? I plan to run a rails application on that vps + postgres + redis and I have no way of knowing when cpu usage will exceed 70%. I mean, should you be concerned about this when you sign for a vps service? Is this normal or is it bad marketing or does it come from poor virtualization technology they may use?
Potentially, install & configure 'cpulimit' package if possible. Nice/renice might help.
That TOS is ridiculous and puts burden of resource consumption monitoring on the user. Any other company will give you X resources and you are allowed (at least try) to use them 100%, 24/7.
It is not normal, even for cheap VPS providers. Resource management should be done at the VPS level and it should not be something a user has to manage within the instance. This is a bad policy and hints at issues with their infrastructure and service in general.
To my knowledge, every virtualization platform allows you to configure guest resources. The provider is either lazy, bad at their job, or is using the written policy as a way to bully users.