From requirements one thing was clear i need my own machine to run so many processes. So shared hosting was out of question and cloud was the best option
Rackspace vs EC2
Decision : Rackspace
Rational :

Rackspace vs EC2
Decision : Rackspace
Rational :
- Amazon start with large machine (1.7 Gig RAM) where as with Rackspace you can start from 256 MB RAM machine.
- I found Amazon was slightly complicated with so many concepts EC2, S3, EBS, SQS, RDBMS service etc. Rackspace i find breeze to use.
- Register with Rackspace
- After completing all formalities, go to https://manage.rackspacecloud.com/
- Go to Hosting > Cloud Server and click on "Add server" button. You will list of OS as shown below.