Just to be clear: This service is offered by Amazon/AWS themselves, it isn't a third party. That's a question I had when I first clicked, which is why I am answering it here. One big "gotcha" for AWS newbies which I cannot tell if this addresses: Does this set or allow the user to set a cost ceiling? AWS have offered billing alerts since forever. They'll also occasionally refund unexpected expenses (one time thing).…
>I'd welcome an account suspend instead of bill shock. The big question here is what to do with stateful data. Would you accept an immediate deletion of all of your S3 data? RDS instances and snapshots?
They could easily cut off public access to those resources while charging you storage fees. Obviously with any kind of ceiling there are certain details that need to be ironed out (i.e. most people wouldn't want configuration information or data to be lost, but they likely would want VPS to be taken offline and other services to be suspended).
Ultimately for most startups, small businesses, and individual developers being able to say "My AWS bill cannot exceed $1000, period" is a powerful tool. Right now if a billing alert fires at 1am, you may not see it until 9am and by then you're already in huge trouble.