Today, Powerset announced that we are using Amazon’s EC2(Eclectronic Cloud 2) service and Jeff Bezos talked about it at Web 2.0. Below is Amazon’s description of their service:
Amazon Elastic Compute Cloud (Amazon EC2) is a web service that provides resizable compute capacity in the cloud. It is designed to make web-scale computing easier for developers. Pay only for what you use.
- $0.10 per instance-hour consumed (or part of an hour consumed).
- $0.20 per GB of data transferred outside of Amazon (i.e., Internet traffic).
- $0.15 per GB-Month of Amazon S3 storage used for your images (charged by Amazon S3)
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How EC2 Helps Powerset Compete with Large Scale Search Providers
For Powerset, EC2 represents the opportunity to create a large scale search infrastructure without paying the upfront capital costs. The advantages for Powerset are the following:
- Grow to large scale quickly
- Focus on our core business (Natural Language and AI)
- Replace huge upfront fixed costs with controllable variable costs
- Increases our optionality
What it was like before EC2
Until now, startups trying to compete with Google had a fundamental challenge – its really expensive to build out the datacenter to have a complete index and be able to serve millions of users.
Until now the landscape of options were very limited:
- Build your data center with equity or debt financing
- Build a smaller data center and grow as you grow in volume
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