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I'm thinking about ways to start a WP multisite a couple of blogs. It's going to start small, but hopefully grow over time.

First I was thinking about a VPS, but now I read about their cheap cloud computing.

I read they cost $0.02/h of CPU time, is that calculated for CPU usage, or just for every hour my server is on?

Do I need additional things to run Wordpress? Like storage and database stuff.

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You could theoretically run wordpress on this. You pay for every hour the server is on. You would have to login and install Wordpress from scratch. You are getting a freshly installed system so you have to install the database, apache, copy wordpress in there, etc. You won't get any sort of control panel like you would get with VPS.

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Yes, reading your question again, if you just need wordpress, go for shared hosting. If you really need a VPS, i would go with some cheaper VPS hosting. Amazon EC2 is not stable enough –  Amala Sep 11 '10 at 13:54
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IF you are new to hosting/wordpress you might want to look at a good shared hosting company such as SurpassHosting or something along those lines. You can install as many wordpress blogs as you want with a click of a button.

If you are comfortable installing a webserver, database server and installing wordpress then yes Amazon would work just fine.

With Amazon you pay per hour + bandwidth +storage if you get additonal storage (S3).

$!5 per month give or take for the cpu usage + bandwidth.

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