Amazon Web Service launched a new service called S3 - Simple Storage Service - yesterday. In its simplest form, it is a developer-oriented storage service backend that is cheap, quick and efficient.
Unfortunately, you won't be able to store your personal files on this online vault yet, but you will be able to do much more - provided you abide by the terms and conditions set by Amazon. The first thing one will have to bear in mind is that it is a back end service, rather than the usual web hosting.
What Amazon S3 offers is a whole new category of storage that puts many application hosting providers to shame. You will be able to store up to 5GB on their servers and they may or may not be shared.
Prices are significantly lower than anywhere else, transferring and storing 1TB of data once for a year would cost you $2K for one year, which is cheap, much cheaper than if you were to set up one yourself.
Already some are thinking about whether Amazon which owns Alexa, is going to combine the Websearch services from Alexa and S3 into a souped-up, on-steroids personal Google.
It doesn't take a rocket scientist to foresee that someone may come up with a maxi-mashup including Amazon and other freely available APIs to produce something that may even match Google or Yahoo in terms of features.