Is hosting the processing side of a web app on Amazon EC2 a good idea?

Disclosure: I am a former Amazon employee on the EC2 team, and I am now at a company that uses EC2 for a great deal of our processing needs.

I have used EC2 for cpu intensive purpose. I have pretty bad experience with small instance of it. But, luckily they provide a high cpu system (5 times the small instance in cpu terms) also at double the cost.

Its work pretty fine for me.

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