I've been using VPS style hosting for almost 10 years now, switched to Amazon
about 5 years ago and my current thought is I will never buy hardware again.
I ended up with AWS because the various VPS venders I was using would come
and go and switching was too much work. My thought is AWS is here to stay.
It also provides other services which are useful but do lock you in to AWS
if you are not careful.

if your existing budget is $350 a month plus hardware I think you could
easily beat that with AWS. A small dedicated MySQL instance with two front
end webservers load balanced is about $100/month



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