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The big question for me is if all these startups bootstrapping on EC2 are going to wake up one day and decide they need their own servers. The smart money is on

by gfodor 15y ago

The big question for me is if all these startups bootstrapping on EC2 are going to wake up one day and decide they need their own servers. The smart money is on "No" being the answer to this question: the switching costs are so unbelievably high, and each day that goes by AWS manages to release features that reduce the surface area of reasons you'd need to do so. So, it basically looks like the current generation of startups are going to grow up on AWS. You can imagine the implications of this for Amazon's profits.

regularfry 15y ago
The flip side is that EC2 is expensive for what it provides in terms of server power per dollar, and switching costs are considerably lower if you're doing the smart thing and already taking advantage of provider redundancy. Amazon may be ahead now, but they can't stop swimming.