Which server host to use? - 2016 edition

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I've been reading through the forums and only see discussions from 2013 and earlier about which hosts to use and not use.

I've read on these forums that Amazon EC2 has really bad performance/lag spikes. Yet comparing various providers, EC2 seems to offer the most cost effective solution and has a good spread of network regions.

I've also looked at Softlayer's Virtual machines, they seem more in line with Azures pricing, which is a lot more expensive.
Leaseweb doesn't have a good network spread, and Cloud Sigma has very limited network capability in Asia and Europe.

As a startup developer, developing my first game, Amazon EC2 right now for me is looking like a winner, has their latency/performance spikes improved?

Also I've read various posts saying Bare Metal servers work out cheaper than Virtual Servers, yet I've found with several calculators this doesn't seem to be the case?