Amazon’s announcement of Micro Instances this week ist great news for web sites who need a lower-capacity intense type for simple operations or low-volume processes. Some people have equated Micro Instances with a VPS model, or specifically as competition to traditional mass market web hosts.
A small instances is not an offering that replaces a web host.
Is there pushbutton deployment of WordPress or Drupal? No.
Can you provision a FREE MySQL database as part of the service? No.
Is there an easy to use cpanel-like front end? No. Do they have reseller accounts? No.
Do they offer built-in POP, SMTP, mailboxes, FTP and other standard web host services? No.
You have to install all of that software manually, configure it, and make sure it stays running. Godaddy does this for you, for $4.95/month.
It’s nice they have a cheaper option, but this doesn’t change Amazon’s fundamental service one iota.