Active in Cloud, Amazon Reshapes Computing

By QUENTIN HARDY
August 27, 2012

SEATTLE - Within a few years, Amazon.com's creative destruction of 
both traditional book publishing and retailing may be footnotes to 
the company's larger and more secretive goal: giving anyone on the 
planet access to an almost unimaginable amount of computing power.

Every day, a start-up called the Climate Corporation performs over 
10,000 simulations of the next two years' weather for more than one 
million locations in the United States. It then combines that with 
data on root structure and soil porosity to write crop insurance for 
thousands of farmers.

Another start-up, called Cue, scans up to 500 million e-mails, 
Facebook updates and corporate documents to create a service that can 
outline the biography of a given person you meet, warn you to be home 
to receive a package or text a lunch guest that you are running late.

Each of these start-ups carries out computing tasks that a decade ago 
would have been impossible without a major investment in computers. 
Both of these companies, however, own little besides a few desktop 
computers. They and thousands of other companies now rent data 
storage and computer server time from Amazon, through its Amazon Web 
Services division, for what they say is a fraction of the cost of 
owning and running their own computers.

"I have 10 engineers, but without A.W.S. I guarantee I'd need 60," 
said Daniel Gross, Cue's 20-year-old co-founder. "It just gets 
cheaper, and cheaper, and cheaper." He figures Cue spends something 
under $100,000 a month with Amazon but would spend "probably $2 
million to do it ourselves, without the speed and flexibility."

He conceded that "I don't even know what the ballpark number for a 
server is - for me, it would be like knowing what the price of a 
sword is."

Cloud computing has been around for years, but it is now powering all 
kinds of new businesses around the globe, quickly and with less 
capital.

...

http://www.nytimes.com/2012/08/28/technology/active-in-cloud-amazon-reshapes-computing.html

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