If you are looking for low cost VPS hosting solution, try Linode.com to see if it fits your needs. So far, I’m quite happy with the service. The web based node manager and Ajax console make the admin work really easy.

Compared to Amazon’s E2C (1.7GB/160GB for $72/month + bandwidth cost $.1/GB + backup storage $.15/GB-month), Linode.com offers more granular choice, ie, lower cost, when you don’t need more powerful computing resource. Linode offering starts with 360MB/10GB/200GB for $19.95/month.

It’s great that you can deploy solution in small VPS and later scale up to E2C while leveraging Amazon’s services like SimpleDB, Simple Storage Service and Elastic Block Store.

Linode offers most common linux distros. We’re using Ubuntu 8.04 LTS.