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Thu, Aug 24, 2006 14:18 EDT
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Posted by: Michael Jung Blog: Venture Watch
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I am fascinated by what Amazon is up to here. First, they launch a hosted storage service, and now this.
Amazon Web Services are readying their latest service called EC2 which will allow users to setup and run servers and computing capacity in the cloud. Users of the service can setup a server instance which is hosted with Amazon, and then access and use the servers they setup just like any other. With EC2 there would no longer be a requirement to source and setup physical hardware and the virtual server instances are charged back to the user based on the CPU, storage and bandwidth usage.
While I can see how this would be attractive for young startups looking to launch their web based consumer facing businesses, an open question, in my mind, is whether Amazon would ever look towards enterprises as potential customers.
An infrastructure that supports young entrepreneurs is entirely different than selling, marketing to and supporting an enterprise building web based applications that help them to run their businesses.
Nevertheless, one of the key trends that we continue to focus on is the blurring of lines between those companies traditionally viewed as 'consumer' facing and those viewed as 'enterprise' facing. As web based technologies become the defacto technology platform, I think we'll begin to see some strange bedfellows.
I've been hearing from top internal sources at Amazon that they are close to rolling out a book rental business i.e. netflix, 3 books at a time as long as you want. Bestsellers first and then will include their whole library. Anyone else hearing this buzz. Seems logical to maximize their core business.
gary inside