Is it possible to use Amazon web service to host a Rails application?
Thanks.
Yes, you should be able to set that up in several different ways on AWS.
Since you can configure an EC-2 instance much like a dedicated server, you can install any software you want and configure it to your needs.
There are some nice ruby tools here: http://amazon-ec2.rubyforge.org/
Also 37 signals is on AWS - http://aws.amazon.com/solutions/case-studies/37signals/
I recommend a simple Amazon Linux AMI Micro instance EBS backed to get started on the free tier. http://aws.amazon.com/free/
This more of an Updated Answer.
You can use Elastic BeanStalk for Ruby deployment using Passenger. Checkout the links AWS Elastic Beanstalk Runs Ruby and Integrates with Amazon VPC and AWS Elastic Beanstalk - Ruby Support and VPC Integration
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