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Amazon Launches Private Cloud Service: Page 2 of 3

Concerns about security and control are causing some businesses to move cautiously with cloud computing, or avoid it altogether. Amazon hopes the new offering will address those concerns and attract businesses that view private clouds as a more viable alternative to public ones.

Among a survey of 500 software developers conducted by research firm Evans Data, developers cited data recovery and security as major concerns about cloud computing. Forty-one percent said they had no plans to develop applications for the cloud or deploy existing applications to the cloud. But of those already involved in cloud development, a greater percentage were developing for private clouds instead of for public clouds. Half of the developers surveyed using Amazon EC2, which has thus far been public, have said they were doing so experimentally or for prototyping an application, not to run a business critical application.

Amazon  Web Services cites pharmaceutical company Eli Lilly and Co. as an early user of Amazon VPC. The service lets Eli Lilly integrate its internal computing environment with Amazon EC2 "without cumbersome configuration or management hassles," said Dave Powers, associate information consultant at Eli Lilly, in a statement.

For at least a year, Eli Lilly has been using Amazon EC2 and other cloud services to provide high-performance computing, as needed, to hundreds of its scientists. In January, Powers told InformationWeek that the company can have a new server up and running in three minutes (it used to take Eli Lilly seven and a half weeks to deploy a server internally) and a 64-node Linux cluster can be online in five minutes (compared with three months internally).

Amazon Web Services also announced Wednesday AWS Multi-Factor Authentication, which provides an additional layer of security to the administration of a customer's account by requiring a second piece of identification.