The key here is “coworker”. He has an obligation to do reasonable things due to being employed by someone and it affecting others.

This is completely different. When it’s a person blog and a personal VPS it’s affecting nobody but that person.

And that's A-OK for them if that person likes more work with more headaches for a solution that costs more and performs worse. (Although less OK for everyone else when their VPS gets compromised and made part of a botnet or otherwise used for cybercrime.)