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I notice that he mentions that his database is remote. I would really like to try this so that I can establish scale with EC2 without moving my database.

Has anyone done this? Do you establish a tunnel between the two locations? How does this kind of latency affect an application? Any other pros and cons?

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If your schema is simple, you might want to check out SimpleDB. No need to setup tunnels (queries are handled over HTTP), and latency is super low when querying from an EC2 instance with both end points being inside AWS networks. You are also not charged for traffic between EC2/SimpleDB.

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