Even bigger than VPS is storage, which is the closest thing you will get to a commodity/drop in replacement in the cloud. It was recently reported that Apple w

Even bigger than VPS is storage, which is the closest thing you will get to a commodity/drop in replacement in the cloud. It was recently reported that Apple was spending hundreds of millions of dollars on S3 (before they switched). I think it's safe to assume that a couple of billion dollars of AWS revenue is cheap commodity storage.... which has low switching costs.