Update: Nathan Peel pointed out that I missed the $0.007 hourly usage in my calculation. I originally said that I saved $180 a year, it’s actually $120. Thanks Nathan for the correction!
Please note that what I’m writing here is more applicable to web sites with low traffic and storage requirement.
I’ve been a happy Slicehost user for the past 2.5 years. I used Slicehost for hosting this blog and some other web sites. I used their 256 slice plan at $20 per month, i.e $240 per year which includes 36.5 days bonus. I know there are cheaper hosting plans out there, but none provides the combination of excellent reliability, full root access, easy to use domain management, excellent support and documentation, and competitive price.