Moments after Jeff Bezos left the stage at the Web 2.0 Summit last week I was able to talk to him for a few minutes about Amazon’s web services ambitions. Jeff is emphasizing that new services like Mechanical Turk, Simple Storage Service (S3) and Elastic Compute Cloud (EC2) are going to be a key business line for them in the future, and they are planting the seeds now.
This was also the subject of a recent cover story on Business Week (written by Rob Hof, one of Silicon Valley’s best tech writers). While these services are still in their infancy, a high profile group of companies are starting to jump on board: Microsoft, Xerox and Second Life are all customers. And SmugMug CEO Don MacAskill recently wrote a long blog post gushing about the amount of money they are saving using S3 over alternative solutions – $500k so far and an estimated $1 million or more in 2007.