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Scary. I actually remember those TV segments from my childhood. 0_0

And I'm feeling better that I decided to go with Rackspace instead of EC2.

I have been debating where to put the servers for our startup -- Rackspace is looking better and better.
Scheduling backups and setting up DNS is certainly easier on Rackspace.
Or you could just hire one of those millions of people who's skillset includes tar, gzip, mysqldump/pgdump, rsync and simple bind configuration.
Despite the fact that my site has been down for 3 hours, I'd still say Amazon is a great place for your startup.

Just don't use EBS.

It seems like the AWS outages are happing more and more frequently -- didn't you guys just have an EBS issue about a month ago?
> didn't you guys just have an EBS issue about a month ago?

Yes. Since then we've moved about 1/2 of our stuff off of EBS, but we're still migrating away from it.