I originally stated that I hadn't tried this yet. I have tried it, and it works great. Amazon's free 1-year micro instance makes this especially great for small applications. Also a very good tool to learn for big modern datasets.
One of the most useful tools is on the Bioconductor website, describing the use of a special R/Bioconductor Amazon Machine Image (AMI):
http://www.bioconductor.org/help/bioconductor-cloud-ami/
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