until now, one of the biggest strengths of amazon's cloud computing model is that it is geared towards small businesses and startups. yet simultaneously, the same model is also one of its biggest weaknesses, due to the lack of enterprise support. this has encouraged a host of competitors to fill in that void. today amazon enters that space as it announces that new functionality to provide an enterprise driven model of support for cloud computing, termed "virtual private cloud".
initially, i thought such an offering would bring gloom to competitors such as eucalyptus. speaking with a member of that group, however, indicates otherwise. they are excited, for two reasons. first, it validates their business model (not that they needed amazon's validation anyway). second, it encourages enterprises to try out their software, since eucalyptus can be run on software you already own. and because the api is the same to both clouds, such enterprises can contract additional hardware on demand. good news for eucalyptus indeed.
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