I can't imagine that's a real loss, likely only deferred sales. What are you going to do if you can't buy your thing at Amazon? Drive somewhere? I think you'll try again later.
Dividing income for time doesn't necessarily give you loss, especially this seems to have no weighting for time of day and season. I doubt an outage right now has anywhere near the same effect it would have during lunch break two weeks before Christmas.
I think the gp was saying that the brand— as in, the perception of AWS— will suffer, not the actual services.
Anyone with an ounce of server knowledge would know it's impossible to keep a website up for 100% of the time, so downtime at Amazon is understandable, but maybe the average Joe Manager is deciding between Rackspace and AWS and happens to visit amazon.com during this downtime. "If Amazon can't even keep their bread-and-butter running, how can I trust them with something like AWS?" he might say.
> Anyone with an ounce of server knowledge would know it's impossible to keep a website up for 100% of the time
As far as I know Google has 100% uptime, so it's not impossible. May not be 100% for every geographical location but that's partly because of things Google cannot control nor make redundant.
I was at the AWS Summit in NYC last week and Werner claims that they only completed the transition of retail to AWS fairly recently: http://www.youtube.com/watch?v=oo1W92Teqx4
Does Amazon really go down that often? Is there any data how often/ for how long Amazon does go down? I wonder how it compares to other sites that get the same amount of traffic.
One thing that would contribute to extra cost is a large amount of advertising that they are paying per click that ends up leading to a page being down.
Judging from alpb's post, they either currently work there, or did in the past. "retail website" being the key phrase used frequently internally to Amazon.
AWS is working at unprecedented scale and is definitely pushing the envelope. This sort of stuff is inevitable and I don't think it's inherently a bad thing.