Monday, June 14, 2010

S3, The scalable platform

I got interested about how other large websites host data on the internet a few days ago and started poking around... eventually I found myself at Amazon's S3 website. It is Amazon's cloud computing service which basically allows anyone to sign up and use Amazon's scalable storage and computing clusters.

The idea of cloud computing hit a chord with me. Basically without much capital investment, it is possible to have a fairly formidable online web presence at somewhat of a decent price. Storage at $0.15/GB month for the first 50 TB, $0.15 /GB out and $0.10/GB. Suppose that you store 1 GB and transfer it in and out during a single month. That movement of data would have cost you $0.40 and subsequently $0.15 more for every time the data is shipped out.

Let's ignore costs for storing data and incoming data (because I will assume that you are a data distributor), the question is can you make more than $0.15/GB that you dish out? If you can, then you've got a money making machine.

The next question is, what kind of data would someone want to pay for?

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