Startup Resources: Hosting Options
Compare racking your own servers versus using services such as Amazon EC2, Heroku, Rackspace, and Digital Ocean. See the "Software Delivery" chapter in Part II, Technologies for more info.
These startup resources are based on the book Hello, Startup: A Programmer's Guide to Building Products, Technologies, and Teams by Yevgeniy Brikman. These resources are a work in a progress. They are also open source, so you can add your contributions by submitting a pull request to the Hello, Startup GitHub Repository. To see how these resources fit into the bigger picture, check out the The Startup Checklist, which is a comprehensive collection of everything you need to do to launch a startup.
Cloud hosting
Amazon Web Services
http://aws.amazon.com/AWS has a package for startups that is free for the first year, with generous usage limits.