I think that you have, at least, the following major options for your data analysis scenario:
Use big data-enabling R packages on your local system. You can find most of them via the corresponding CRAN Task View that I reference in this answer (see point #3).
Use the same packages on a public cloud infrastructure, such as Amazon Web Services (AWS) EC2. If your analysis is non-critical and tolerant to potential restarts, consider using AWS Spot Instances, as their pricing allows for significant financial savings.
Use the above mention public cloud option with R standard platform, but on more powerful instances (for example, on AWS you can opt for memory-optimized EC2 instances or general purpose on-demand instances with more memory).
In some cases, it is possible to tune a local system (or a cloud on-demand instance) to enable R to work with big(ger) data sets. For some help in this regard, see my relevant answer.
For both above-mentioned cloud (AWS) options, you can find more convenient to use R-focused pre-built VM images. See my relevant answer for details. You may also find useful this excellent comprehensive list of big data frameworks.
Rpackages that you will decide to use, for example this tutorial. A more high-level overview and example of an R-based cluster can be found in this working paper. Hope this helps. – Aleksandr Blekh Apr 13 '15 at 10:38