Recently I decided to move my web hosting from dreamhost to another service. I took a look at amazon ec2 and slicehost. Setting up amazon ec2 was definitely worth the experience and I can absolutely see the value in it where short bursts of CPU power are required. However, I must say, it's pretty damn expensive to use as a web hosting solution. If what you want is your own private server in the cloud, then slicehost is way better. You get a small standalone machine, 1 CPU, 256MB RAM with your choice of linux distro on it. You get all that for a small $20 a month.