Because Oracle databases are typically terabytes in size and required 1000's of IOPS, you will typically use EBS PIOPS volumes with EBS-optimized EC2 instances. This leads the often asked question of "What does EBS optimized EC2 instances really mean?" The short answer is that storage pipe to the EBS (PIOPS) volume is dedicated and does not compete with network traffic like it does in a non EBS-optimized instance. A more detailed answer can be found here:
http://perspectives.mvdirona.com/2012/08/01/EBSProvisionedIOPSOptimizedInstanceTypes.aspx
On a related note, additional instance types now offered EBS Optimized functionality: http://aws.amazon.com/about-aws/whats-new/2013/03/19/announcing-ebs-optimized-support-for-additional-instance-types/
http://perspectives.mvdirona.com/2012/08/01/EBSProvisionedIOPSOptimizedInstanceTypes.aspx
On a related note, additional instance types now offered EBS Optimized functionality: http://aws.amazon.com/about-aws/whats-new/2013/03/19/announcing-ebs-optimized-support-for-additional-instance-types/
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