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Passenger
aka mod_rails

The preferred deployment setup for Rails is Phusion Passenger aka mod_rails. It's a module for Apache that automatically manages the back end. Just setup, launch, and enjoy.
Proxy setups

Prior to Passenger, Rails was mostly deployed using Apache or nginx with either a built-in or standalone proxy (like HAProxy) against a cluster of Mongrels or Thins. This setup is still works great, but it's more complicated to setup and administrator than using Passenger.
JRuby on Rails

JRuby brings Rails to the Java Virtual Machine. This means that you can deploy Rails applications on app servers like Glassfish or Jetty. You can use Warbler to package your Rails application as a standard WAR. Great for slipping into the enterprise.
Automate with
Capistrano

Capistrano brings deployment automation to Rails whether you're working with a single server or on a cluster of dozens. It was extracted from the 37signals tool chain (like Rails) by core alumni Jamis Buck.
Hosting
While Rails hosting is now common place, there's a handful of dedicated Rails hosting companies that have been around for a long time and supporting the community: Rails Machine, Joyent, Brightbox, Planet Argon, and Engine Yard. If you're just looking for a VPS, we recommend Slicehost or Linode.
"Rails", "Ruby on Rails", and the Rails logo are trademarks of David Heinemeier Hansson. All rights reserved.
Rails is released under the MIT license. Ruby under the Ruby License.
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