I just found this site called Stax Network, http://www.stax.net.
Stax is offering a platform as a service product for Java applications, similar to Amazon EC2. Allows developers to create, test and deploy Java applications very easily. This will be extremely useful for the startups that build there apps on java, without having to build out their own physical infrastructure.
The best part is you can scale the apps on demand from a single shared server to a load-balanced cluster and you will only pay for the computing resources that you use.
Applied for the beta, Waiting for the key. Its free until it moves out of beta.
Update: Got the invitation code today, tried a sample application, Worked as expected. The admin UI has few glitches in firefox, but worked fine in Chrome.
Update2: Deployed my sample application i.e. built on top of hibernate/struts and mysql. No issues while running on single server. But when it is load balanced on 2 servers, running into invalid session error. May be the requests are not sent to the same server. I need to figure this out, will update you on this. Contact me if you want the source code of the sample app. It uses hibernate and struts, db is mysql
You can access the sample app at http://hw4999.dvkvarma.staxapps.net