Well, it’s finally happened. Amazon’s recent announcement is heralding a new day in computing, especially for startups and small businesses. Here’s how CNet and Computer Business Review covered the story. I began writing about utility computing (also called on-demand computing) way back when — well, in 2002, anyway, before the media began covering this phenomenon in a big way. Mostly that was due to my friend and client Tom Kieffer, who had founded a company here in Minneapolis (since acquired) based on this concept. Tom saw this trend coming all the way back in the late ’90s, when he founded that company, Agiliti Inc. And, even though the UC movement subsequently had a bit of slowdown as a result of the dot-bomb and general tech crash in 2000, he firmly believed it was still a major trend. Well, write down August 2006, folks, because I say this is a key milestone in confirming that utility computing is, in fact, very real. Internet startups everywhere (just to name one category) will be looking seriously at services like this as a way to scale.

I just discovered that Greg Linden, formerly of Amazon, and lately founder of Findory in Seattle, did a post on this, too, on his very good blog called Geeking With Greg.