For quite sometime now i've been looking for a place to house my personal projects, which gives me the flexibility of a cloud style host but with full root access so that I may toy around with installing whatever I need.
Linode offers the ability to deploy Linux virtual servers in the Linode cloud. With it's simple Stackscripts for quick deployment of LAMP or LEMP server stacks. You can also deploy Stackscripts with popular open source CMS Wordpress, CMS Drupal and even a Minecraft multiplayer server in a few clicks.
Check out some of the awesome Stackscripts on Linode - http://www.linode.com/stackscripts/
Linode might not be the cheapest cloud based VPS you'll find, but with it's basic package starting at just $19.99 a mere £12 p/month it's still pretty in-expensive.
I deployed the Wordpress and Ubuntu Stackscript from Linode in a few minutes then successfully setup vhosting and my Wordpress sites in not a great deal longer. So far my Linode has 16 days of uptime. Running this very blog :) (amongst others)
This blog is running on an Ubuntu LAMP stack, with Wordpress (Version 3.4.2 at the time of writing), fine tuned with WP Super Cache and CDN Sync Tool for fast static content delivery. It's also fully responsive ;) buzzzwwooorrdddds.
One thing I have noticed since deploying my Linode is the fantastic community behind it. Unlike other alternatives, i've noticed Linode has an extremely knowledgeable and loyal following of fellow mostly friendly and happy to help Linux server enthusiasts. Linode has some excellent tutorials and help guides coupled with an excellent IRC channel which is almost always buzzing.
I'm so far very impressed with Linode and in comparison to AWS it provides a combination of cloud, community, help and control at a good price. AWS micro instances are cheap at about £10 p/m but do not offer guaranteed resources, where as Linode does. I also kept getting MySQL crashes on my AWS instance.
Linode even offers a generous 7 day money back guarantee.