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JohnTranter
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I’m using Linode for staging environments and Digital Ocean for quick test environments.
Production environments I’m leaving to the traditional hosting companies like Rackspace, Digital Pacific, Anchor etc. (some of whom are using AWS)
If we need to temporarily increase capacity for a marketing campaign, they can take care of it.

As Greg says, you can get great deals with Linode/Digital Ocean but you’ll be getting your hands dirty with Sys Ops.
I think it’s better to pay the extra when it comes to a live/production environment just so SysOps is not an additional headache.