G'day all,
We have been doing this in production for about five years, the client is aware of the trade off between speed, cost and availability. (By this I mean, if it goes down for a few minutes, no big concern to them). We had around 2 million users, but very small payloads.
We take full database backups every six hours, log-ship to s3, and run multiple hot streaming servers for a high level of user query activity.
Obviously, the risk was always there of an un-planned shutdown, but we had very good performance on a very cheap setup. m3.medium / ubuntu anyone!
Disclaimer - we don't do this any more for our bigger production systems ... for a number of reasons. We ran out of space on the SSD, our write queries are generally small and not complex, so we went to EBS backed without PIOPS, and haven't really noticed any major problems with performance. I felt that the risk / humbug associated with needing to upgrade the operating system etc made it easier to just use the EBS. This does also mean we can vertically scale our DB server easily and securely. We still have hot-streaming replications, back ups and log shipping.
hth
cheers
Ben