I\'ve recently decided to take on a pretty big software engineering project that will involve developing a client-server based application. My plan is to develop as many clients
I'd say go with the simplicity of HTTP, at least until your needs outgrow its capabilities. (The more stateful your application needs to be, the less HTTP fits).
For low cost and scalability, you probably can't go wrong with a cloud like Rackspace's or Amazon's. But I'm just getting started with those, my servers have been VPSs from tektonic until now.