I'm risking being inflammatory here, but do people really believe that they get better uptime from AWS compared to renting dedicated servers? I feel like AWS has way too many moving parts to be stable. It's very tempting for them to reuse bits of infrastructure everywhere which increases the chances that if something goes wrong somewhere it will break your stuff. So for example, hosting instance images on S3 means th…
I haven't rented servers in about two years, but yes. My old MediaTemple dedicated servers and the pair we had colocated at a local telco's large datacenter experienced occasional network outages and whatnot just like AWS does.
IMO, AWS made load balancing and fault-tolerant setups much more accessible to small businesses. At the time of our switch, getting a load balancer at our colo was quite pricey whereas AWS charges $15ish a month for it. Getting a three-tier setup on AWS was easy, whereas at the colo we'd have to pay for at least 6U of space even for relatively small amounts of traffic.