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According to press release

“We’re working with AWS to provide an Elastic Beanstalk Ruby on Rails container that leverages the optimized Engine Yard stack which has been battle-tested by thousands of high-growth companies.” John Dillon, CEO of Engine Yard

http://www.businesswire.com/news/home/20110119005591/en/Amaz...

I was curious why Amazon let Heroku be acquired by Salesforce late last year. Now I know it's because they were already working on Beanstalk.

Heroku will probably still have the advantage of being git-based. I doubt Amazon will support git with beanstalk.

Now, Amazon may start siphoning off python users that switched to rails just to use Heroku.