I read all over the Amazon documentations, but I'm still confused or should I say overwhelmed by the different terms.

I'm coming from a traditional web hosting environment where the only concept I understand is how much storage I have and how much bandwidth I'm allowed.

Here are what I understand so far about amazon and my questions about a lot of it.

EC2 - I assume are instances where I can set up my webserver (IIS) and run my .NET application? Or is it already setup for me?

EBS - For database? If not, where do I get the database server? Is the database server (Sql server 2005 or 2008) already installed? What is Snapshot Get Requests? and Snapshot Put Request?

S3 - What is this used for? I thought EBS is for storage, confused here. Why you need S3?

Elastic Load Balancing - I thought load balancing is just a way to alleviate the burdens on your web servers. how does it work with Amazon? What do they mean by "elastic" load balancing?

Data Transfer between region - What does that mean? and how do you control which region the data transfers to and from?

My requirements are the following

  1. I need an IIS webserver to run my page
  2. I need a database server
  3. I need a location to store my files (can it be on the same "server" as #1)?
  4. I need the database and file servers to always be recoverable. (I heard we need to store it into EBS to avoid loss of data?)
  5. In case one web server is overloaded, performs slow, I need it to switch off to another server in the farm.
  6. If traffic spikes, then I need a way to increase CPU, memory, etc. The ability to handle traffic nicely (which is the purpose of elastic I'm assuming)

In addition, I don't really understand the concept of "if you are not running your instance, shut it down or else it will

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