Since you have an account with Amazon and EC2, you can use their console: https://console.aws.amazon.com/ec2/home.
In the console, click on Instances, then Launch Instance to create a new virtual machine. There are lots of operating systems to choose from; a good choice for a first instance would be 32-bit Ubuntu running on an m1.small
instance.
If you already have a Keypair, select the one you want from the list. Otherwise, you can create a new Keypair in the Keypair dialog. When the new instance has been created, you can use the keypair to connect to it, using a command like:
ssh -i siva_keypair root@InstancePublicDNS
You can get the instance public DNS name from the console. At this point, you're basically logged on to a new machine, and can use it in any way you would use a real, physical machine.
By the sound of it, you're going to want to create some user accounts, install an FTP server and MySQL (use apt-get
if you're on Ubuntu).
Note that you can lose data which you put on the local disk if an instance goes down - if you're running a database you should use EBS which is very easy to set up, and gets you persistent, fast storage which can be attached to any EC2 instance.