EC2 isn't bad. Under Rails, I use Rio to store a lot of remotely fetched images (it's one line to fetch a remote image in Rio), HTTParty to handle some JSONP,

EC2 isn't bad. Under Rails, I use Rio to store a lot of remotely fetched images (it's one line to fetch a remote image in Rio), HTTParty to handle some JSONP, and EC2 bandwidth is free when using Heroku. Nice setup, the only disadvantage is that Heroku's file systems are read-only, so you have to write temporarily to /tmp, and then again to EC2.