[chrishacken]

Based on the costs of disks alone, their cost per PB is actually around $35k. They likely get a volume discount, so we can lower that estimate even more and say $25-30k. Bandwidth is essentially free even though they charge ridiculous amounts of money for it on their services. You can get a 10Gbps link for as low as $2,000 if you buy it on-net and in bulk, Amazon probably gets it even cheaper. So ~3PB/month for $1,000/month.

[trevyn]

Pointer? My understanding was that economy 10Gbps transit would be closer to $4-5k/month.

[chrishacken]

http://www.he.net/

"Get BGP+IPv6+IPv4 for $0.25/Mbps!"

I thought it was HE, but it must have been someone else that had a 10Gig deal for $2,000. Either way, that's for a single 10Gig link. If you're buying 100Gb - 1Tbps like Amazon is, you're probably getting an even better deal.

We just signed a contract with Level 3 for slightly more than the price you mentioned, but they had to build into us; which costs them ~$120k out of pocket, thus the higher price.