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    <p>You're asking a lot of questions, but let me try to provide a high-level overview:</p> <ul> <li>EC2: Just a server in the sky. When you're booting up a server, you're using the EC2 technology.</li> <li>EBS: Consider this to be a hard-disk. Your server image must be booted off a disk, and this is it.</li> <li>S3: A place to store your files, and then retrieve them using HTTP. For performance and scalability reasons you may want to place data and images on S3 rather than running it directly off your server.</li> <li>Elastic Load Balancing: A load balancer sits in front of all requests and directs them transparently to a live server. You would use this if your app consists of many servers (say 5 or more) and you want the load balancer to spread the load and automatically bypass any failed machines.</li> <li>Data transfer between regions: Amazon datacentres are spread all over the world. If you need to transfer data between physical region then they will charge you per kb of data transacted.</li> <li>Databases: If you're building an app then just start with your own database running on your own server. ie. Just kick off your app using MS SQL or MySQL and then look more in depth at Amazon owned database solutions.</li> <li>Charges: You are correct that Amazon charges can get out of hand and expensive, but that is very much dependent as to how well you control your own infrastructure. Cloud means direct charges per unit of bandwidth and CPU consumed. You can immediately see a lowering of charges if you cache images client-side (bandwidth) and reduce the size of your machine (CPU). You may want to look at <a href="http://LabSlice.com" rel="noreferrer">http://LabSlice.com</a> [disclaimer: See my sig, as it's where I work] as the technology there can help keep EC2 costs low. My #1 recommendation is to keep an eye on the 'Account' panel on the Amazon console, as that gives a running tab of your charges, and that way you avoid surprises.</li> </ul>
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    1. POCan someone elaborate on these basic concepts of hosting via Amazon Web Services?
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    1. USSimon at LabSlice-com
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    1. COThanks a lot Simon. Your additional answers really helps. I probably will look intot Amazon owned database solutions as I don't want queries go through the net to fetch queries. To avoid latency in that regard. Too bad, Stackoverflow won't let me mark both of your answers as "answer". I'd if I have a choice.
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    2. COWe actually just added a list of EC2 terms on our company blog: http://blog.labslice.com/2011/03/taxonomy-of-amazon-cloud.html
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