I really don't know what your skill set is and/or Rails requirements, but $30-$40 for hosting seems pretty high. My product uses 3 Java Virtual Machines and a

I really don't know what your skill set is and/or Rails requirements, but $30-$40 for hosting seems pretty high. My product uses 3 Java Virtual Machines and a Postgres Database and I can get it too perform quite well on a 512MB Digital Ocean instance ($5 a month).