Amazon ElastiCache Details - Managed Memcache
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And I think you folks were very smart to start small and improve incrementally. As an example of what I mean, take this Slashdot comment from the EC2 launch a few years back: http://developers.slashdot.org/comments.pl?sid=329797&ci...
Those are all legitimate gripes, and one by one Amazon has knocked them all down. Had you tried solving all of the problems before launching, I imagine you never would have gotten anywhere. The steady pace and it's-ready-when-it's-ready releases are definitely inspiring to me.
Outsourcing these type of things is potentially justifiable to a developer whose wallet is full and many hats touch the ceiling.
Obviously there is overhead, but if you have machines already and they are not maxed out on RAM then the $10/GB price is not far of the real cost.