AWS revolutionised startup economics | GigaOM

I had a ringside seat for the startup creation during the 1990s Internet boom and it was clear that in order for a web-based company to exist, the table stakes were about $2-to-$3 million. That money was spent on servers, storage systems, networking gear, database licenses and web server software. And that’s before taking into account the data center space rentals and bandwidth costs.

In short, if you didn’t have venture capitalists backing you, then getting going was a monumental task. A lot of that money went to line the pockets of Sun Microsystems, Oracle, Microsoft, IBM, EMC, Dell and Compaq/HP.

Today, all it takes to hang up a shingle is the proverbial dollar and a dream. It’s more like a credit card, Amazon account and an idea. In Silicon Valley, it is fashionable to laud and celebrate the accelerators and new funding tools such as AngelList, but to be fair, none of those would have much to do had it not been for AWS.

via New startup economics: Why Amazon (web services) and Dropbox need each other — GigaOM.


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