I use an m3.xlarge AWS Elastic Compute instance to run a LAMP server for hosting websites.
On this instance I have 24 WordPress based websites, all for small businesses, so no major traffic hogs (I've not exceeded 1TB of traffic per month in 3 years) but I've set them all a 2GB storage limit. I've not yet exceeded 1TB of Magnetic storage.
No email being hosted on the server.
I spread the sites out over 5 IP addresses.
I've got it storing snapshots of the whole thing to a storage bucket too.
On average it's costing me just over $330 per month.
I upgraded to the m3.xlarge instance last year as previous, less powerful instances didn't have the juice to put up with some of the shocking WP plugins/themes that get put on it.