At RailsConf I went to a workshop by the VMWare folks about CloudFoundry, their new open source PaaS. They seemed to have some neat tools in development and during the session I deployed a Hobo app on their cloudfoundry.com service. Their system is open source, so you can deploy the same service for development (they called it a "microcloud") as you will use for deployment, and you should be able to run your own "cloud", making that recent xkcd comic true in fact. I'm looking forward to seeing what they do with their service.
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