Amazon’s Utility Services

Dan Farber writes:

Amazon’s digital utility charges the equivalent of $70 per month for the equivalent to a 1.7 gigahertz x86 box or $70 per hour for 700 boxes, Bezos said.

Tim O’Reilly quizzed Bezos about why Amazon is providing utility services. “The answer is we been doing this for 11 years. We take the things we are good at internally and figure out how to expose those and charge for them. We are good at it, we know how to do it and it is an attractive business,” Bezos said. “We are in this business to serve developers. We are in the mode now of listening and trying to figure out how to make the services better.”

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Rajesh Jain

An Entrepreneur based in Mumbai, India.