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Between 1999–2005 the costs went down by 90% and between 2005–2010 they went down a further 90%. What’s astonishing and few other than those who lived it as startups (I launched my second startup in this era) realize is how profound of an impact that rise of Amazon AWS (S3 & EC2) had on the startup market.
These two trends had a major impact on the computing industry from 2000-2005 but the effects weren’t yet felt by the VC industry. They started by offering cloud storage (S3) on a super cheap, pay-as-you consume basis. Every startup I knew in 2005 (when I started my second company) was using this.
Xdrive itself was actually a Southern California startup, and was acquired by AOL in 2005. ElephantDrive is venture backed by Intel, and uses Amazon's S3 storage service as its back end data store. America Online announced in October that it was shuttering Xdrive, and will close the service on January 12th. READ MORE>>
Prior to founding 1 st Street Partners, Robin was the Executive Vice President of Publishing and the executive leading the global games business at ActivisionBlizzard where she oversaw all studio/product development and marketing/business operations, doubled revenue and delivered record profit from 2005 through 2008.
When I started my second company in 2005 we decided to do everything differently. Our chief architect, Ryan Lissack, wanted to store our data in Amazon’s new (at the time) storage product called S3 that enabled us to store all our data in their facility and we’d pay by the MBs uploaded / downloaded.
My colleague at National Defense University, Dr. Tim Coffey, head of the Naval Research Laboratory for many years, called these two parts of discovery the "prospecting" and "mining" phases in a 2005 paper ( [link] ), where prospecting is largely the responsibility of the government and mining that of industry. John Culberson (R-TX).
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