CloudPundit: Massive-Scale Computing

the business of Internet infrastructure, cloud computing, and data centers

Posts Tagged ‘Amazon’

Amazon’s dedicated instances

Posted by Lydia Leong on March 29, 2011

Back in December, I blogged about the notion of Just Enough Privacy — the idea that cloud IaaS customers could share a common pool of physical servers, yet have the security concerns of shared infrastructure addressed through provisioning rules that would ensure that once a “private” customer got a virtual machine provisioned on a physical server, no other customers would then be provisioned onto that server for the duration of that VM’s life. Customers are far more willing to share network and storage than they are compute, because they’re worried about hypervisor security, so this approach addresses a significant amount of customer paranoia with no real negative impact to the provider.

Amazon has just added EC2 Dedicated Instances, which are pretty much exactly what I wrote about previously. For $10 an hour per region with single-tenancy, plus a roughly 20% uplift to the normal Amazon instance costs, you can have single-tenant servers. There are some minor configuration complications, and dedicated reserved instances have their own pricing (and are therefore separate from regular reserved instances), but all in all, these combine with the recently-released VPC features for a reasonably elegant set of functionality.

The per-region charge carries a significant premium over any wasted capacity. An extra-large instance is a full physical server; it’s 8x larger than a small instance, and its normal pricing is exactly 8x, $0.68/hour vs. a small’s $0.085/hour (Linux pricing). Nothing costs more than a quadruple extra large high-memory instance ($2.48/hour), also a full physical server. Dedicated tenancy should never waste more than a full physical server’s worth of capacity, so the “wasted” capacity carries around a 15x premium on normal instances and a 4x premium on the expensive high-memory instances, compared to if that capacity had simply been sold as a multi-tenant server. It’s basically a nuisance charge for really small customers, and not even worth thinking about by larger customers (it’s a lot less than the cost of a cocktail at a nice bar in San Francisco). All in all, it’s pretty attractive financially for Amazon, since they’re getting a 20%-ish premium on the instance charges themselves, too. (And if retail is the business of pennies, those pennies still add up when you have enough customers.)

Amazon has been on a real roll since the start of the year — the extensive VPC enhancements, the expansion of the Identity and Access Management features, and the CloudFormation templates are among the key enhancements. And the significance of the Citrix/Amazon partnership announcement shouldn’t be overlooked, either.

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Amazon Simple Email Service

Posted by Lydia Leong on February 3, 2011

Last week, Amazon launched its Simple Email Service (SES). SES is an outbound SMTP service, accessible via API or easily integrated into common SMTP servers (Amazon provides instructions for sendmail and postfix). It has built-in rate-limiting and feedback loop statistics (rejected, bounced, complaints). It’s $0.10 per thousand messages. EC2 customers get 2000 messages for free each month. You do, however, have to pay for data transfer.

Sending email from EC2 has long been a challenge. For the obvious reasons, Amazon has had anti-spam measures in place, and the EC2 infrastructure itself is also likely to be automatically eyeballed with suspicion by the anti-spam mechanisms on the receiving email servers. Although addressing issues with Elastic IPs and reverse DNS has helped somewhat, Amazon has struggled with reputation management for its EC2 address blocks, despite attempting to police outbound SMTP from those blocks.

There are various third-party email services (bare-bones as well as sophisticated) that EC2 users have used to work around the problem. Sometimes it’s thrown in as part of another service; for instance, DataPipe includes an external SMTP service as part of its managed services for EC2. Pricewise, though, SES wins hands-down over both a raw delivery service like AuthSMTP and a fancier one like Sendgrid.

Amazon isn’t providing the super-sophisticated capabilities that email marketing campaign companies can provide, but it is providing one really vital element — feedback loop statistics, something that is useful to companies sending both transactional and bulk email. For some customers, that’s all they’re looking for — raw sends and the feedback loop. When you look apples-to-apples, though, Amazon is more than a full order of magnitude cheaper than the comparable traditional services. That represents a real potential shake-up for that industry, whether the target customer is a small business or an enterprise. Also, it’s potentially a very interesting way for those companies to offer a simple service on somebody else’s low-cost infrastructure, as Mailchimp STS now does.

My colleagues Matt Cain (email infrastructure) and Adam Sarner (e-marketing) and I will be issuing an event note to Gartner clients in the future, looking at this development in greater detail.

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Amazon’s Elastic Beanstalk

Posted by Lydia Leong on January 24, 2011

Amazon recently released a new offering called the Elastic Beanstalk. At its heart, it is a simplified interface to EC2 and its ancillary services (load-balancing, auto-scaling, and monitoring integrated with alerts), along with an Amazon-maintained AMI containing Linux and Apache Tomcat (an open source Java EE application server), and a deployment mechanism for a Java app (in the form of a WAR file), which notably adds tighter integration with Eclipse, a popular IDE.

Many people are calling this Amazon’s PaaS foray. I am inclined to disgree that it is PaaS (although Amazon does have other offerings which are PaaS, such as SimpleDB and SQS). Rather, I think this is still IaaS, but with a friendlier approach to deployment and management. It is developer-friendly, although it should be noted that in its current release, there is no simplification of any form of storage persistence — no easy configuration of EBS or friendly auto-adding of RDS instances, for example. Going to the database tab in the Elastic Beanstalk portion of Amazon’s management console just directs you to documentation about storage options on AWS. Almost no one is going to be running a real app without a persistence mechanism, so the Beanstalk won’t be truly turnkey until this is simplified accordingly.

Because Elastic Beanstalk fully exposes the underlying AWS resources and lets you do whatever you want with them, the currently-missing feature capabilities aren’t a limitation; you can simply use AWS in the normal way, while still getting the slimmed-down elegance of the Beanstalk’s management interfaces. Also notably, it’s free — you’re paying only for the underlying AWS resources.

Amazon exemplifies the idea of IT services industrialization, but in order to address the widest possible range of use cases, Amazon needs to be able to simplify and automate infrastructure management that would otherwise require manual work (i.e., either the customer needs to do it himself, or he needs managed services). I view Elastic Beanstalk and its underlying technologies as an important advancement along Amazon’s path towards automated management of infrastructure. In its current incarnation, it eases developer on-boarding — but in future iterations, it could become a key building-block in Amazon’s ability to serve the more traditional IT buyer.

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Gartner is NOT dissing Amazon’s cloud

Posted by Lydia Leong on January 16, 2011

I’ve now seen a number of press reports and some related writing, about the Magic Quadrant for Cloud Infrastrucure as a Service and Web Hosting, that I feel mischaracterize statements made on the MQ in ways that they were certainly not intended to be taken, and in some cases, mischaracterize the nature of a Magic Quadrant itself. I feel compelled to try to attempt to make some things explicitly clear. Specifically:

This is not just a Cloud IaaS MQ. As the title says, this is a Cloud IaaS AND Web Hosting MQ. You should not interpret a vendor who is a Leader in the MQ as necessarily being a “cloud leader”, for instance; they are simply a leader in the context of the overall market, of which we have forecasted 25% of the revenue to be cloud IaaS by the end of 2011. You should look at the execution axis as favoring vendors whose positioning fits well with the immediate, relatively conservative needs of typical Gartner clients, and the vision axis as favoring vendors whose strategy makes them likely to succeed in a more cloud-oriented future.

The Magic Quadrant is not tiered. Specifically, the Challengers quadrant is not “better” than the Visionaries quadrant, nor is the reverse true. Indeed, Visionaries may be better positioned to succeed in the future than Challengers are, since they tend to be companies who have good roadmaps and are evolving quickly. (And Niche Players might be highly focused and fantastic at what they do, note.)

The Magic Quadrant rates relative positions of vendors in an overall market. Importantly, it does not rate products or services; these are only a component of the overall rating (in this particular MQ, about a third). You should never judge a vendor’s position as indicating that it necessarily has a better service, especially with respect to your specific use case. It’s especially important in this particular MQ because most of the vendors are not pure-plays, and their cloud IaaS service might be much better or much worse than their portfolio as a whole.

Strengths and Cautions are statements about a vendor, not the reasons for their rating. The statements are things that we think it is important for a prospective customer to know when they’re thinking about working with this vendor. They are distinct from the criteria scores that underly the graph. In many cases, the vendor has not lost or gained points specifically for the thing that is called out, but it’s something distinctive, or that readers might not be aware, or is a common misunderstanding from readers, or is even just simply pointing out a best practice when dealing with a particular vendor.

At no point do we say that Amazon’s cloud service is unproven. Amazon is positioned as a Visionary, and as a category, Visionaries are typically companies who have a relatively short track record in the evaluated market as a whole (yes, the boilerplate language for the category uses “unproven”). Pure-play cloud vendors are still emerging, which makes this characterization fit pretty well. While Amazon has obviously been at the pure-cloud-IaaS business longer than any other vendor on the Magic Quadrant, they are newcomers to the overall market assessed by the MQ, which is now about 15 years old. MQ Visionaries are pioneering new territory. That shouldn’t be regarded as a bad thing.

We are not “dissing” Amazon. Some writers have been trying to imply that we don’t think much of Amazon’s cloud service. Nowhere does the report state this. The report certainly attempts to present meaningful strengths and cautions for Amazon, as it does for every vendor. Amazon has by far the highest rating on vision. Its execution score is based on its ability to serve the whole host of evaluated enterprise use cases in the Magic Quadrant, which, if you think about it, indicates that Amazon must have scored well on the self-managed IaaS use case, since that is the only one of the three evaluated use cases that are considered by the Magic Quadrant, and Amazon doesn’t serve the other two use cases at all. Use of Amazon or any other vendor should be considered in light of your use case and requirements.

Obviously, there are plenty of people who are interested in understanding more about the thinking and market observations that led to this Magic Quadrant, and possibly some substantial confusion on the part of people who don’t have access to the larger body of research as to Gartner’s views on cloud IaaS and so forth. I’ve blogged a fair amount recently to try to clear up some points of confusion. However, I am mindful of Gartner’s policies for social media use by analysts, and believe that it would be inappropriate for me to methodically blog about market evolution, market segmentation, and the use cases and adoption patterns that we are seeing from our clients — the things that would be necessary in order to fully lay out an explanation of our market view and how it led to this particular MQ. Instead, I should be writing research notes for paying clients, and I intend to do exactly that.

If you are a Gartner client, you are welcome to place an inquiry to discuss the Magic Quadrant and any other related matters; I’m happy to discuss these at length. And do please read the full Magic Quadrant and related research. (Non-clients can only read the non-interactive document.)

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What’s cloud IaaS really about?

Posted by Lydia Leong on January 5, 2011

As expected, the Magic Quadrant for Cloud IaaS and Web Hosting is stirring up much of the same debate that was raised with the publication of the 2009 MQ.

Derrick Harris over at GigaOM thinks we got it wrong. He writes: Cloud IaaS is about letting users get what they need, when they need it and, ideally, with a credit card. It doesn’t require requisitioning servers from the IT department, signing a contract for any predefined time period or paying for services beyond the computing resources.

Fundamentally, I dispute Derrick’s assertion of what cloud IaaS is about. I think the things he cites above are cool, and represent a critical shake-up in thinking about IT access, but it’s not ultimately what the whole cloud IaaS market is about. And our research note is targeted at Gartner’s clients — generally IT management and architects at mid-sized businesses and enterprises, along with technology start-ups of all sizes (but generally ones that are large enough to have either funding or revenue).

Infrastructure without a contract? Convenient initially, but as the relationship gets more significant, usually not preferable. In fact, most businesses like to be able to negotiate contract terms. (For that matter, Amazon does customzed Enterprise Agreements with its larger customers.) Businesses love not having to commit to capacity, but the whole market is shifting its business models pretty quickly to adapt to that desire.

Infrastructure without involving traditional IT operations? Great, but someone’s still got to manage the infrastructure — shoving it in the cloud does not remove the need for operations, maintenance, patch management, security, governance, budgeting, etc. Gartner’s clients generally don’t want random application developers plunking down a credit card and just buying stuff willy-nilly. Empower developers with self-provisioning, sure — but provisioning raw infrastructure is the easy and cheap part, in the grand scheme of things.

Paying for services beyond the computing resources? Sure, some people love to self-manage their infrastructure. But really, what most people want to do is to only worry about their application. Their real dream is that cloud IaaS provides not just compute capacity, but secure compute capacity — which generally requires handling routine chores like patch management, and dealing with anti-virus and security event monitoring and such. In other words, they want to eliminate their junior sysadmins. They’re not looking for managed hosting per se; they’re looking to get magic, hassle-free compute resources.

I obviously recognize Amazon’s contributions to the market. The MQ entry on Amazon begins with: Amazon is a thought leader; it is extraordinarily innovative, exceptionally agile and very responsive to the market. It has the richest cloud IaaS product portfolio, and is constantly expanding its service offerings and reducing its prices. But I think Amazon represents an aspect of a broad market.

Cloud IaaS is complicated by the diversity of use cases for it. Our clients are also looking for specific guidance on just the “pure cloud”, self-provisioned “virtual data center” services, so we’re doing two more upcoming vendor ratings to address that need — a Critical Capabilities note that is focused solely on feature sets, and a mid-year Magic Quadrant that will be purely focused on this.

I could talk at length about what our clients are really looking for and what they’re thinking with respect to cloud IaaS, which is a pretty complicated and interesting tangle, but I figure I really ought to write a research note for that… and get back to my holiday vacation for now.

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What does the cloud mean to you?

Posted by Lydia Leong on December 6, 2010

My Magic Quadrant for Cloud Infrastructure as a Service and Web Hosting is done. The last week has been spent in discussion with service providers over their positioning and the positioning of their competitors and the whys and wherefores and whatnots. That has proven to be remarkably interesting this year, because it’s been full of angry indignation by providers claiming diametrically opposed things about the market.

Gartner gathers its data about what people want in two ways — from primary research surveys, and, often more importantly, from client inquiry, the IT organizations who are actually planning to buy things or better yet are actually buying things. I currently see a very large number of data points — a dozen or more conversations of this sort a day, much of it focused on buying cloud IaaS.

And so when a provider tells me, “Nobody in the market wants to buy X!”, I generally have a good base from which to judge whether or not that’s true, particularly since I’ve got an entire team of colleagues here looking at cloud stuff. It’s never that those customers don’t exist; it’s that the provider’s positioning has essentially guaranteed that they don’t see the deals outside their tunnel vision service.

The top common fallacy, overwhelmingly, is that enterprises don’t want to buy from Amazon. I’ve blogged previously about how wrong this is, but at some point in the future, I’m going to have to devote a post (or even a research note) to why this is one of the single greatest, and most dangerous, delusions, that a cloud provider can have. If you offer cloud IaaS, or heck, you’re a data-center-related business, and you think you don’t compete with Amazon, you are almost certainly wrong. Yes, even if your customers are purely enterprise — especially if your customers are large enterprises.

The fact of the matter is that the people out there are looking at different slices of cloud IaaS, but they are still slices of the same market. This requires enough examination that I’m actually going to write a research note instead of just blogging about it, but in summary, my thinking goes like this (crudely segmented, saving the refined thinking for a research note):

There are customers who want self-managed IaaS. They are confident and comfortable managing their infrastructure on their own. They want someone to provide them with the closest thing they can get to bare metal, good tools to control things (or an API they can use to write their own tools), and then they’ll make decisions about what they’re comfortable trusting to this environment.

There are customers who want lightly-managed IaaS, which I often think of as “give me raw infrastructure, but don’t let me get hacked” — which is to say, OS management (specifically patch management) and managed security. They’re happy managing their own applications, but would like someone to do all the duties they typically entrust to their junior sysadmins.

There are customers who want complex management, who really want soup-to-nuts operations, possibly also including application management.

And then in each of these segments, you can divide customers into those with a single application (which may have multiple components and be highly complex, potentially), and those who have a whole range of stuff that encompass more general data center needs. That drives different customer behaviors and different service requirements.

Claiming that there’s no “real” enterprise market for self-managed is just as delusional as claiming there’s no market for complex management. They’re different use cases in the same market, and customers often start out confused about where they fall along this spectrum, and many customers will eventually need solutions all along this spectrum.

Now, there’s absolutely an argument to be made that the self-managed and lightly-managed segments together represent an especially important segment of the market, where a high degree of innovation is taking place. It means that I’m writing some targeted research — selection notes, a Critical Capabilities rating of individual services, probably a Magic Quadrant that focuses specifically on this next year. But the whole spectrum is part of the cloud IaaS adoption phenomenon, and any individual segment isn’t representative of the total market evolution.

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Amazon, ISO 27001, and a correction

Posted by Lydia Leong on November 17, 2010

FlyingPenguin has posted a good critique of my earlier post about Amazon’s ISO 27001 certification.

Here’s a succinct correction:

To quote Wikipedia, ISO 27001 requires that management:

  • Systematically examine the organization’s information security risks, taking account of the threats, vulnerabilities and impacts;
  • Design and implement a coherent and comprehensive suite of information security controls and/or other forms of risk treatment (such as risk avoidance or risk transfer) to address those risks that are deemed unacceptable; and
  • Adopt an overarching management process to ensure that the information security controls continue to meet the organization’s information security needs on an ongoing basis.

ISO 27002, which details the security best practices, is not required to be used in conjunction with 27001, although this is customary. I forgot this when I wrote my post (when I was reading docs written by my colleagues on our security team, which specifically recommend the 27001 approach, in the context of 27002).

In other words: 27002 is proscriptive in its controls; 27001 is not that specific.

So FlyingPenguin is right — without the 27002, we have no idea what security controls Amazon has actually implemented.

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Amazon, ISO 27001, and some conference observations

Posted by Lydia Leong on November 17, 2010

Greetings from Gartner’s Application Architecture, Development, and Integration Summit. There are around 900 people here, and the audience is heavy on enterprise architects and other application development leaders.

One of the common themes of my interaction here has been talking to an awful lot of people who are using or have used Amazon for IaaS. They’re a different audience than the typical clients I talk to about the cloud, who are generally IT Operations folks, IT executives, or Procurement folks. The audience here is involved in assessing the cloud, and in adopting the cloud in more skunkworks ways — but they are generally not ultimately the ones making the purchasing decisions. Consequently, they’ve got a level of enthusiasm about it that my usual clients don’t share (although it correlates with the reported enthusiasm they know their app dev folks have for it). Fun conversations.

So on the heels of Amazon’s ISO 27001 certification, I thought it’d be worth jotting down a few thoughts about Amazon and the enterprise.

To start with, SAS 70 Is Not Proof of Security, Continuity or Privacy Compliance (Gartner clients only). As my security colleagues Jay Heiser and French Caldwell put it, “The SAS 70 auditing report is widely misused by service providers that find it convenient to mischaracterize the program as being a form of security certification. Gartner considers this to be a deceptive and harmful practice.” It certainly is possible for a vendor to do a great SAS 70 certification — to hold themselves to best pratices and have the audit show that they follow them consistently — but SAS 70 itself doesn’t require adherence to security best practices. It just requires you to define a set of controls, and then demonstrate you follow them.

ISO 27001, on the other hand, is a security certification standard that examines the efficacy of risk management and an organization’s security posture, in the context of ISO 27002, which is a detailed security control framework. This certification actually means that you can be reasonably assured that an organization’s security controls are actually good, effective ones.

The 27001 cert — especially meaningful here because Amazon certified its actual infrastructure platform, not just its physical data centers — addresses two significant issues with assessing Amazon’s security to date. First, Amazon doesn’t allow enterprises to bring third-party auditors into its facilities and to peer into its operations, so customers have to depend on Amazon’s own audits (which Amazon does share under certain circumstances). Second, Amazon does a lot of security secret sauce, implementing things in ways different than is the norm — for instance, Amazon claims to provide network isolation between virtual machines, but unlike the rest of the world, it doesn’t use VLANs to achieve this. Getting something like ISO 27001, which is proscriptive, hopefully offers some assurance that Amazon’s stuff constitutes effective, auditable controls.

(Important correction: See my follow-up. The above statement is not true, because we have no guarantee Amazon follows 27002.)

A lot of people like to tell me, “Amazon will never be used by the enterprise!” Those people are wrong (and are almost always shocked to hear it). Amazon is already used by the enterprise — a lot. Not necessarily always in particularly “official” ways, but those unofficial ways can sometimes stack up to pretty impressive aggregate spend. (Some of my enterprise clients end up being shocked by how much they’re spending, once they total up all the credit cards.)

And here’s the important thing: The larger the enterprise, the more likely it is that they use Amazon, to judge from my client interactions. (Not necessarily as their only cloud IaaS provider, though.) Large enterprises have people who can be spared to go do thorough evaluations, and sit on committees that write recommendations, and decide that there are particular use cases that they allow, or actively recommend, Amazon for. These are companies that assess their risks, deal with those risks, and are clear on what risks they’re willing to take with what stuff in the cloud. These are organizations — some of the largest global companies in the world — for whom Amazon will become a part of their infrastructure portfolio, and they’re comfortable with that, even if their organizations are quite conservative.

Don’t underestimate the rate of change that’s taking place here. The world isn’t shifting overnight, and we’re going to be looking at internal data centers and private clouds for many years to come, but nobody can afford to sit around smugly and decide that public cloud is going to lose and that a vendor like Amazon is never going to be a significant player for “real businesses”.

One more thing, on the subject of “real businesses”: All of the service providers who keep telling me that your multi-tenant cloud isn’t actually “public” because you only allow “real businesses”, not just anyone who can put down a credit card? Get over it. (And get extra-negative points if you consider all Internet-centric companies to not be “real businesses”.) Not only isn’t it a differentiator, but customers aren’t actually fooled by this kind of circumlocution, and the guys who accept credit cards still vet their customers, albeit in more subtle ways. You’re multi-tenant, and your customers aren’t buying as a consortium or community? Then you’re a public cloud, and to claim otherwise is actively misleading.

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Amazon’s Free Usage Tier

Posted by Lydia Leong on November 11, 2010

Amazon recently introduced a Free Usage Tier for its Web Services. Basically, you can try Amazon EC2, with a free micro-instance (specifically, enough hours to run such an instance full-time, and have a few hours left over to run a second instance, too; or you can presumably use a bunch of micro-instances part-time), and the storage and bandwidth to go with it.

Here’s what the deal is worth at current pricing, per-month:

  • Linux micro-instance – $15
  • Elastic load balancing – $18.87
  • EBS – $1.27
  • Bandwidth – $3.60

That’s $38.74 all in all, or $464.88 over the course of the one-year free period — not too shabby. Realistically, you don’t need the load-balancing if you’re running a single instance, so that’s really $19.87/month, $238.44/year. It also proves to be an interesting illustration of how much the little incremental pennies on Amazon can really add up.

It’s a clever and bold promotion, making it cost nothing to trial Amazon, and potentially punching Rackspace’s lowest-end Cloud Servers business in the nose. A single instance of that type is enough to run a server to play around with if you’re a hobbyist, or you’re a garage developer building an app or website. It’s this last type of customer that’s really coveted, because all cloud providers hope that whatever he’s building will become wildly popular, causing him to eventually grow to consume bucketloads of resources. Lose that garage guy, the thinking goes, and you might not be able to capture him later. (Although Rackspace’s problem at the moment is that their cloud can’t compete against Amazon’s capabilities once customers really need to get to scale.)

While most of the cloud IaaS providers are actually offering free trials to most customers they’re in discussions with, there’s still a lot to be said about just being able to sign up online and use something (although you still have to give a valid credit card number).

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Amazon introduces “micro instances” on EC2

Posted by Lydia Leong on September 9, 2010

Amazon has introduced a new type of EC2 instance, called a Micro Instance. These start at $0.02/hour for Linux and $0.03/hour for Windows, come with 613 MB of allocated RAM, a low allocation of CPU, and a limited ability to burst CPU. They have no local storage by default, requiring you to boot from EBS.

613 MB is not a lot of RAM, since operating systems can be RAM pigs if you don’t pay attention to what you’re running in your baseline OS image. My guess is that people who are using micro instances are likely to want to use a JeOS stack if possible. I’d be suggesting FastScale as the tool for producing slimmed-down stacks, except they got bought out some months ago, and wrapped in with EMC Ionix into VMware’s vCenter Configuration Manager; I don’t know if they’ve got anything that builds EC2 stacks any longer.

Amazon has suggested that micro instances can be used for small tasks — monitoring, cron jobs, DNS, and other such things. To me, though, smaller instances are perfect for a lot of enterprise applications. Tons of enterprise apps are “paperwork apps” — fill in a form, kick off some process, be able to report on it later. They get very little traffic, and consolidating the myriad tertiary low-volume applications is one of the things that often drives the most attractive virtualization consolidation ratios. (People are reluctant to run multiple apps on a single OS instance, especially on Windows, due to stability issues, so being able to give each app its own VM is a popular solution.) I read micro instances as being part of Amazon’s play towards being more attractive to the enterprise, since tiny tertiary apps are a major use case for initial migration to the cloud. Smaller instances are also potentially attractive to the test/dev use case, though somewhat less so, since more speed can mean more efficient developers (fewer compiling excuses).

This is very price-competitive with the low end of Rackspace’s Cloud Servers ($0.015/hour for 256 MB and $0.03/hour for 512 MB RAM, Linux only). Rackspace wins on pure ease of use, if you’re just someone who needs a single virtual server, but Amazon’s much broader feature set is likely to win over those who are looking for more than a VPS on steroids. GoGrid has no competitive offering in this range. Terremark can be competitive in this space due to their ability to oversubscribe and do bursting, making its cloud very suitable for smaller-scale enterprise apps. And VirtuStream can also offer smaller allocations tailored to small-scale enterprise apps. So Amazon’s by no means alone in this segment — but it’s a positive move that rounds out their cloud offerings.

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