One flaw with AWS-like businesses is lack of lock-in because of customer churn. Web site popularity on the Internet obeys a power law distribution--the top sit

One flaw with AWS-like businesses is lack of lock-in because of customer churn. Web site popularity on the Internet obeys a power law distribution--the top sites take the lion's share of traffic and money from the Internet. AWS will never see revenue from the post popular sites, because once a site grows past a certain size, it's cheaper to build redudancy and host themselves (Netflix, Facebook, etc.). AWS is actually fairly expensive for handling a large stream of traffic--it's only for intermittent use or cash-poor sites that the economics makes sense. So AWS is full of very small to medium size operations, which are constantly popping in and out of existence. And when a small site pops into existence, it has no legacy cloud APIs to support, and can go with whatever cloud provider has the best offering at that time.