We host on EC2.  I think it beats anything else for dev+test 
environments (since you can create and tear down instances very easily 
and pretty quickly, thanks to the various projects out there that let 
you do this --see [1]).

For production, my impression is that it's more expensive than some 
other options, but that's not based on any empirical evidence.  If you 
need to be able to scale up and down quickly, then it can't be beat 
(right now you have to roll your own auto-scaling, but Amazon has 
announced intentions to provide this as a service [2]) .  But if your 
configuration is going to be largely static, I suspect you'll do better 
pricewise with another vendor.

dwh

[1] We use http://github.com/pauldowman/ec2onrails
[2] http://aws.amazon.com/contact-us/new-features-for-amazon-ec2/


Richard Aday wrote:
> What do people think about hosting it on EC2 (Amazon Cloud)?  I havn't 
> tried it, but am looking for responses.
>

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