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I think EC2 ( http://aws.amazon.com/ec2 ) is a pretty good way to go but I'm interested in what others are thinking.

EC2 is not suitable for most Web applications:

- You don't get a static IP address, so if your instance fails and needs to reboot, you might end up with a different IP address.

- If your instance fails, it also loses all the data stored in it.

- There is no hardware load balancing.

With that said, you can probably use it to complement your other servers by doing some of the batch processing.