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How Amazon's EC2 Service Was Born

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Re: How Amazon's EC2 Service Was Born

#21
post #19
post #3

EC2 has been in operation for a few years now, and the price levels from the launch remain unchanged, despite the fact that their largest expenses are subject to Moore's law.

Has the size of a 'compute unit' changed?

Not much. It's hard to tell, given that the definition is somewhat vague.

Re: How Amazon's EC2 Service Was Born

#22
post #3

EC2 has been in operation for a few years now, and the price levels from the launch remain unchanged, despite the fact that their largest expenses are subject to Moore's law.

Even mathematically inclined people get brainbusted when someone says the I-word, but I have to try: if you are able to buy some commodity for $1 in 2005, and you are able to buy the same commodity for $1 in 2008, then the real price has declined by about eight to ten percent, give or take.

Re: How Amazon's EC2 Service Was Born

#23
post #22
post #3

EC2 has been in operation for a few years now, and the price levels from the launch remain unchanged, despite the fact that their largest expenses are subject to Moore's law.

Even mathematically inclined people get brainbusted when someone says the I-word, but I have to try: if you are able to buy some commodity for $1 in 2005, and you are able to buy the same commodity for $1 in 2008, then the real price has declined by about eight to ten percent, give or take.

If you're expecting the price to drop by 75%, 10% is negligible.

Re: How Amazon's EC2 Service Was Born

#24
post #13
post #10

Three small things that demonstrates how Bezos is an unique leader: 1) " we presented the paper to bezos " -- Wow, engineers have direct access to the CEO. 2) "we presented the paper to bezos ( he doesn't do slides )" -- Wow, a CEO that actually has some attention span 3) "we presented the paper to bezos (he doesn't do slides), he liked a lot of it " -- Wow, a CEO who actually understands technology

All of those are true. The lack of powerpoint at Amazon is not a myth - docs are the order of the day. This is more good than bad, but has some of both.

This is a great aspect of the culture there that has helped Amazon maintain its technical competitive edge.

Re: How Amazon's EC2 Service Was Born

#25
post #8
post #7

Earlier quoted context omitted.

Their largest expense could be bandwidth.

EC2 charges separately for compute, storage, and bandwidth. IIRC they did reduce bandwidth prices, but compute prices have been the same for years.

ah! thanks for letting me know.
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