EC2, Licensing, and Competitive Advantage
I have been working with Amazon Web Services (and EC2) a lot lately, and have made some observations that really fly in the face of conventional wisdom.
I work in ETL, which means I need to get a hold of big iron to crunch on big data. Machines are expensive, licenses are expensive, storage and networks are cheap. Scalability is important, but measured.AWS would be perfect for sourcing ETL jobs that are one-offs or are particularly large or complex. However, the major vendors are very particular about making sure that their products are only installed on authorized machines. They make it pretty difficult for you to cluster easily, especially if you are a little guy just starting out.
This is antithetical to the AWS approach to problems. Here, machines and storage are dirt cheap, networks are pretty cheap, and scalability is paramount. The most difficult thing is arranging a problem so that it can be worked on by your infinite monkeys, in the form of EC2 instances. The biggest problem then becomes licensing.
In a highly scalable environment, it is incredibly compelling it becomes to use easily licensed software. Compelling to the point where it becomes worth it to build your own tools instead of purchasing off the shelf. For example, for a web server I could use Apache or Websphere. Apache is free, and I can install it on my instance with absolutely no problems (as a matter of fact, it is pre-installed). With Websphere I am going to have to purchase a license (or more), then monkey with the fact that it will be installed on a new machine with a new hostname each time. You can make the same argument for MySQL vs. Oracle, or Python vs. .NET.
Now this isn’t an anti-corporate rant, not by a long shot. But, I think it is a valid way to look at how licensing will be a competitive advantage in the future. Software vendors should start looking at their products in terms of AWS and other compute farms, especially at the enterprise level. Those who don’t get out in front of this are going to find their lunches eaten, and quickly. There is quite a hype around Web 2.0 companies these days, this could be a great way for someone to get their foot in the door of the Fortune 1000.
Perhaps Richard Stallman should send a Christmas card from the bazaar to Jeff Bezos over at the cathedral this year …








