.NET Hosting - Dedicated or Cloud

My current hosting setup comprises of Google Apps Pro for email and document sharing.

However I need to find a server that will host a MVC.NET website which ideally requires IIS7 and a SQL Server. The traffic (on a previous similar project) is circa 1000 uniques or 4GB per day.

I have been told that the Amazon EC2 cloud is the way to go as it is very good value and is highly scalable.

I have looked around and Im not sure if is is good value as I am not sure that I am comparing like for like.

Has anyone used such a setup and if os what words of advice can you share?

Yeah I hear the Amazon Cloud is the best in cloud servers.

But I would still recommend dedicated

I believe you need to have a piece of paper and write doqn all what you need. Try to think on the configuration of the server. Search for the existing offers, compare them with cloud hosting prices and then according that decide what is better.
Good luck

I have been told that the Amazon EC2 cloud is the way to go as it is very good value and is highly scalable.

You know you are not first who is referring to that service. It could be considering as a good sign that they are pretty good for this purpose.
But for the new project like you have I assume that is better have something cheaper and dedicated server is better option in any case.

Cloud is usually more expensive than a dedicated server solution. Cloud is optimal for users that do not require 24/7 usage of resource and only need their solution to be used in short bursts. If you plan on hosting a website and you do have a budget, I would definitely go with a dedicated server.

The costs difference will outweigh benefits of convenience of having scalability.