Werner Vogels on Amazon EC2's new persistent storage feature
allthingsdistributed.com
allthingsdistributed.com
translation: "Contrary to what we usually do, we decided to announce this still under development features so Google App Engine doesn't continue to steal headlines, or any future clients choosing a platform, from us - you know how the press loves to champion Google innovation."
When your traffic is zero or very low, as in the case of when you're just starting out, a conventional VPS host is still a lot cheaper. But the good thing with AWS is that it's easy to port your apps to run on their platform.
Once you have mountable volumes, you can pretty much run the LAMP-style stack of your choice unmodified, right?
The only thing that Amazon needs is a good online system for managing their offerings. I guess scaler and rightscale try to solve this problem, but amazon could provide some better system managing themselves.