Disclaimer: I'm a software engineer working for AWS. But not on EC2. I feel the margin number conclusion is deeply flawed for variety of reasons. There are so

Disclaimer: I'm a software engineer working for AWS. But not on EC2. I feel the margin number conclusion is deeply flawed for variety of reasons. There are some questions the author cannot have answers for, that greatly change the margin numbers for EC2. A couple that comes to mind are: 1. What percentage of time are customers being charged for the available servers? 2. What percentage of instance hours are being charged at on-demand prices, vs reserved instance? Also it completely ignores services that makes EC2 stand out from plain hosting, and adds much value, such as AutoScaling, CloudWatch, Elastic Load Balancing, OpsWorks, and Elastic BeanStalk. And believe me when I say that support cost is NOT trivial. In many cases, the number of engineer hours involved makes the support pricing look like a real bargain.