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This isn't really hot news, I came across this story a couple of times last year but haven't blogged about it. Amazon is renting out capacity in their Datacenters and charge based on volume traffic. You can rent disk storage or CPU time on virtual machines.
It is definitely an interesting option for fast growing startups and other companies who are not sure about their short term growth. In the long run, I don't think it is a solid foundation for any IT focused company to have your most valuable assets, your data, stored with someone else no matter how reliable Amazon is.
The most interesting aspect of all of amazons web services to me is the mechanical turk. The term comes from an 18th century chess playing machine, which turned out to be controlled by a human inside. Amazon's concept however is to reverse the idea of a web application by switching the roles of human and computer. Humans are a lot better at certain tasks then even the most advanced computers, so amazon provides a Web Service API for programmers to describe their problems and request a solution. Humans can then register to complete these tasks and supply the solution back to the software. I'm really curious how this service will be used.
Technorati Tags: amazon, hosting, mechanical turk, web 2.0
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