Amazon has great competition to contend against since it’s the first company to introduce utility computing without SLA’s then others is likely to follow. 3tera, Inc. which was founded in 2004 focuses on cloud computing mainly and it launched its AppLogic system in 2006 which is their core product and a turnkey system that provides a virtual system to manage a resource pool that allows clients to power their application. AppLogic provides a virtual private server that is flexible, a virtual private datacenter, cloud data storage facility and software to support certain service applications.
Amazon provides these services as well and that also at a much lower price which attracts more customers. But AppLogic has its advantages over Amazon EC2. AppLogic is provided as a service as well as a software license unlike Amazon EC2, which is just a service. This benefits the customer since they can purchase services from a number of providers and move between them easily and they can also have in-house cloud computing services. On the other hand EC2 is provided as a service only and does not provide the advantage of offering a software license unlike AppLogic. 3Tera AppLogic also provides a 99.999 availability service and within sometime it will provide a SLA, which adds a guarantee to the service unlike Amazon. Amazon provides 99.95% SLA and works to make EC2 available with an Annual Uptime Percentage of 99.95%. Unlike Amazon that targets small and big businesses, 3tera targets enterprise and government users because it helps them save capital investment in hardware and other facilities that also reduces labor in operations. 3Tera charges per month like Amazon but EC2 is less costly than AppLogic, which is more expensive comparatively, and the price gives Amazon an edge over its competitors.
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