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I am planning to deploy an application on AWS. It is an application that exposes some REST/Json webservices. It has a CMS UI created used active_admin. Can I deploy that system in AWS? Or it is intended to be used only to deploy webservices systems?

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In addition to Joe's answer, EC2 gives you a virtual server. You can log on the the virtual computer with ssh and install any software you need.

You don't even have to run a web server - if you wanted to run a program to process information (ie, render computer graphics images), you could do that as well.

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I think what you are looking for is Amazon EC2 (which is part of AWS). You can setup a small instance pretty quickly and that should let you deploy your rails application.

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What service does AWS provide that EC2 does not provide?
AWS is a collection of services. One of them is EC2, another is Route53 (their dns service), another is S3 (storage). You can use EC2 on its own to host a rails site)

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