Jeff Bezos Announces EC2
Today, Jeff Bezos from Amazon announced the launch of Amazon's Elastic Compute Cloud (EC2) in Business Week. The launch according to Business Week was met with mixed reviews from Wall Street, negative reviews from analysts, but raving reviews from its customers - like Powerset.
In the article, BusinessWeek does a pretty good job of explaining why the Powerset/EC2 relationship is so valuable. They say:
"Consider Powerset, the secretive search startup backed by A-list angel investors, including PayPal Inc. (EBAY ) co-founder Peter Thiel and veteran tech analyst Esther Dyson. Co-founder and CEO Barney Pell harbors ambitions of out-Googling Google with technology that he says would let people use more natural language than terse keywords to do their searches. By analyzing the underlying meaning of search queries and documents on the Web, Powerset aims to produce much more relevant results than the current search king's."
The really interesting part is that EC2 is an enabler for nearly any startup competing with existing incumbent giants. It's actually part of Bezos' strategy to create a team of companies that are working with Amazon and that's a strategy that Powerset benefits from quite a bit.
" With all these initiatives, Amazon empowers new startups, which are hungry to knock off Internet leaders that happen to be...Amazon competitors. Has Bezos thought about how he may be creating an army of allies to fight his rivals? His answer: "Absolutely!"
Powerset is planning to have its own press release on EC2 which should come out on Wednesday of next week. And by the way, look for Bezos' keynote speech at Web 2.0 if you want to learn more about Powerset.