I sold half of my Google stock this morning and bought Amazon. I really believe in the direction that Amazon is heading with their infrastructure services – S3, SQS, EC2 and whatever is next. I don’t know much about the retail side of their business, but they have a bight future ahead selling web services to a whole new market of customers. Customers like me.
And they don’t have to invest hundreds of millions of dollars to build data centers and infrastructure to support these new services. The retail side of their business already did this for them. They are just renting out the spare capacity on their existing infrastructure. The financial risks appear to be low and the upside potential is huge.
Google, Sun and MS will surely follow with similar services, but I doubt they can put much pricing pressure on Amazon. Amazon was smart and priced their services low from the start, as if competing services already existed.
Dan Ciruli was dead on in his post on Friday – Believe it or not: it’s even more important than YouTube
Companies like Webmail.us will buy web services from a mix of these sorts of new infrastructure vendors. These services will supplement systems running in our own data centers where ever it makes sense to do so. Hmm… where shall we start?
They price low because other services do already exist. It’s called a virtual private server service. Amazons API’s are not that useful and they have a complicated networking setup.
Just the typical big name company doing something and making it “cool”.
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