[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
More information about the FoRK