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Amazon's Christmas faux pas shows risks in the cloud

Published on Dec 27, 2012 12:42 PM
 
A picture taken on Sept 3, 2010 in Washington shows the Amazon homepage appears on a screen. A Christmas Eve glitch traced to Amazon.com Inc that shuttered Netflix for users from Canada to South America highlights the risks that companies take when they move their data center operations to the cloud. -- PHOTO: AFP

(REUTERS) - A Christmas Eve glitch traced to Amazon.com Inc that shuttered Netflix for users from Canada to South America highlights the risks that companies take when they move their data center operations to the cloud.

While the high-profile failure - at least the third this year - may cause some Amazon Web Services (AWS) customers to consider alternatives, it is unlikely to severely hurt a fast-growing business for the cloud-computing pioneer that got into the sector in 2006 and has historically experienced few outages.

"The benefits still outweigh the risks," said Global Equities Research analyst Trip Chowdhry.

"When it comes to the cloud, Amazon has got it right." The latest service failure comes at a critical time for Amazon, which is betting that AWS can become a significant profit generator even if the economy continues to stagnate.

 
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