Storagezilla calls it: Amazon cloud storage is a bust

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Storagezilla calls it: Amazon cloud storage is a bust

Mark Twomey's StorageZilla blog is one of my favorites.  Insightful, witty and often inspired.

In his latest entry, Zilla-man claims to have seen the soft white underbelly of Amazon's EC2 and S3 cloud storage business. 

Of course this was pretty interesting to me as I'm a prehistoric skeptic of cloud storage, although most of my opinions on the matter have circled around the reliability end of things. 

What I never did say, but wondered in the darkness was how the economics of it were going to work. There aren't all that many free lunches in this world and the hard knocks of storage don't appear to lend themselves to infinite sweetness and light. Storage is just a gnarly technology and that means there is real cost incurred somewhere.

Zilla-man writes;

one wonders for how much longer Amazon will continue to happily subsidize every user of their AWS offerings? Their capacity is as finite as everyone else's so eventually there will have to be another big infrastructure spend cycle where Amazon have to decide if they're going to go deeper into the hole or not.

Zilla-man, in your honor, a link to the Kate Bush video "Cloudbusting"

  • Label me a Cloud Believer.  The long-term money-making details may still be unclear for Amazon, but Google has found a way to make a nearly infinite investment in storage obscenely profitable.

  • Pete,  we are going to differ then.  Google might be able to pull it off with the hefty ad revenues they are getting, but how much storage are they really doling out as a service?