AWS opens full services in Australia: will your host survive?

Data centreAmazon Web Services (AWS) have already opened a data centre in Sydney to run Cloudfront, their CDN, and there are the strongest possible rumours that they will announce the launch of their full web hosting services in Australia at the ‘Customer Appreciation’ event on 13 November. Rackspace have already announced a Sydney data centre is under construction.

Blah blah blah say some IT teams- we’re happy with XXXX and there’s no need to move.

Maybe not, but as the last prominent argument against moving to the cloud services falls away – the fact that “our data must remain within Australia” – will your hosting company even survive as customers migrate to the cheaper cloud hosts? Can they afford to make the 15 to 50% price reductions that they’ll need to in order to stay competitive?

Of course, not all local hosts will be at risk but some how quickly can you move if yours does go into administration? Would the administrators even keep the electricity on?

Something to consider.

UPDATE 13 November:

AWS announce AU services – you heard it here first