We are developing a web application that will deal with highly sensitive (financial) data of clients (audience is medium to large sized businesses). Clients will be under scrutiny from regulators & auditors and, as such, we will be too. More importantly to give clients a level of comfort our application and related hosting arrangement should instill a lot of confidence with them.
We are looking into using a cloud based service like Linode, Amazon EC2, etc. To allow for maximum flexibility We are keen on putting everything on virtual servers and avoiding having to buy our own hardware.
Does a cloud based service make sense for our particular scenario? If not what type of hosting should we consider? If so what should we look out for?