Capacity and Performance of Rails Applications
by Jim Van Fleet on Nov 17, 2010
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One of the most effective means of getting higher capacity out of a single VM is to evaluate Ruby Enterprise Edition along with passenger. REE allows each Rails worker to use a much smaller amount of memory, although you should test and be sure your application can run on it. For even better results, rack up a Sinatra app for your high-concurrency endpoints.
Most Rails apps end up with their response time dominated by time spent in the database, although every workload is different.
BTW, did you know that top and ps aux will show you your slowest queries in real time using PostgreSQL? True story.
Shared filesystems are particularly troublesome. It turns what looks like disk IO into a large amount of network IO, and can really quickly complicate things if there is a underperformance in the storage layer. Avoid them if at all possible with your architectural schemes.