We have a software based on LAMP and we have tested it in AWS/EC2 and works very well.
The software is like a accounting system that works for many companies. We 've launched an EC2 instance for each customer and we have many instances working.
We tested launching a VPS with a main domain and for each customer we created a subdomain eg. customer123.theapp.com
but the VPS it is not as fast as EC2
Please advise if there is a better configuration lo low the AWS cost and to manage easly each installation.
For example, adding more memory + tuning database instances usually produces a massive boost performance.
If you can invest a few dollars/month in more memory, leading to $1000s/day in revenue...
The question then becomes a normal profit equation.
So your answer is... you determine your target income, then tool your tech to meet your requirements.
Starting out... 0 customers... you'll require different tech, than running 100K reqs/minute sustained traffic on your site.
Start however you like, then constantly analyze your profit to determine your next step.
Tip: Running on dedicated bare metal servers is always cheaper than AWS.
Search EE, reading questions about "AWS Surprise Bills", before using AWS for large projects.