[FoRK] Amazon S3 storage service

J. Andrew Rogers < andrew at ceruleansystems.com > on > Tue Mar 14 09:14:32 PST 2006

On Mar 14, 2006, at 8:48 AM, Luis Villa wrote:
> So, I think this looks really useful, but I can't imagine how in the
> hell this fits with Amazon's business model. Anyone? Anyone?

While I am surprised to see Amazon so early out of the gate, this is  
a service that a lot of companies are actively looking at offering  
even though it has little or nothing to do with their core business.

The business reasoning is pretty simple:  companies like Amazon have  
to purchase large quantities of excess capacity in data centers that  
generally never gets used but which have considerable CapEx  
overhead.  The ability to sell that excess capacity into a  
predictable low-priority market for a huge markup (as is the case  
here based on the prices) is pretty close to being a source of "free  
money" for companies, exploiting previously unexploited assets with  
very little overhead.

The problem, and therefore business opportunity, is software  
components that allow the end user to fully take advantage of these  
resources for sale.  I've been looking into this for quite a while  
now, but have been too distracted to make much headway.

J. Andrew Rogers

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