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» Amazon Web Services Economics Center, comparing AWS/cloud computing vs co-location vs owned data center from Green Data Center Blog
Amazon Web Services has a post on the Economics of AWS. The Economics of AWS For the past several years, many people have claimed that cloud computing can reduce a company's costs, improve cash flow, reduce risks, and maximize revenue... [Read More]

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Michael E. Driscoll

Jeff,

An unappreciated cost, and one that could probably be quantified, is the cost of CPU 'rentorship' -- that is, the time and effort developers expend launching and killing instances.

This why, for example, reserved instances make more economic sense that is apparent by a simple calculation of 'percentage utilization' of the instance. There is quantifiable value in having an instance that is always available.

It's also why it's great to see Amazon release tools that ease the pain of kill/launch cycles, such as allowing for hibernation of instances in EBS.

In general, tools that allow for web-scale "engineering by example" -- e.g. create an instance, tune it, clone it, pause it / hibernate it -- will be yet another step that EC2 takes in saving the most precious resource on earth: developer time.

Michael Versace

Hi Jeff -

In the cost calculator, where would one find "compliance costs"? These would be cost associated with things like the performance of risk assessments, controls testing and certification, and information discovery.

Thanks
Mike

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