Amazon cloud problems

http://www.nytimes.com/2011/04/23/technology/23cloud.html?ref=technology

The above link is to an article that discusses Amazon and problems in its cloud computing services the past week. Amazon has been an industry leader in the cloud computing services, having over 1000 different companies, many of them start ups, relying on its services to supply the computing power for their operations. The cloud model makes sense for many small businesses interested in rapid growth who do not want to pay for large, up front hardware and software costs. However, Amazon's cloud has experianced problems this past week, resulting in many companies being forced to halt their operations. This has further increased the discussions surrounding the cloud model; is it worth allowing a third party controlling a company's data, beyond its control? By tapping into the cloud, companies forgoe large startup costs. However, is the cloud model less costly when taking into account the added risk of a thrid party managing such a large portion of your resources? This is a question that companies must ask themselves when deciding to use the cloud model.