These stories are everywhere. A couple months ago, it hit an associate of mine pretty hard, he moved a small python monitoring and statistics application off a laptop in the office to AWS. A couple weeks later he came back and discovered that it had burned up a few thousand $'s in storage and transfer fees for what normally was a couple hundred MBs of data a day being passed around and a some database updates.

Since it wasn't really worth debugging what went "wrong" it got chalked up as a learning experience and moved back to the laptop where its happily running. If it dies/whatever its no big deal, just a git clone;./runme; and it rebuilds the whole database and creates another web facing interface.

The IaaS guys are masters of marketing. They have convinced everyone that their offerings are less expensive and more reliable, which repeatedly is proven to be false in all but the most dynamic of situations. In this cases its saving $7.99 a month over a unlimited site shared hosting godaddy/whatever plan. Just in case it might need to scale a lot, in which case your going to be paying hundreds if not thousands in surge pricing.

No thanks...