How do people use Iaas (e.g. EC2 at Amazon) & tools to let you do this
....while you can use it in any way you want ----here is some common ideas:
For Web applicaitons
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Run your base system in minimum # of VMs
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Monitor the load
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Load should be distributed to VMs
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If > threshold then Increase the number of VMs.
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If load < some threshold Then Decrease number of VMS.
Elastic Block Store = mountable storage, local to each VM instance
Elastic IP address: programmatically remap public IP to any instance
CloudWatch: monitoring EC2 resouces
Auto Scaling: conditional scaling
Elastic load balancing: automatically distribute incoming traffic across instances