Amazon Web Services and the lack of a SLA

I am interested in understanding the business tradeoffs that people make when they decide to host their data on S3 or run their service on EC2 instead of investing in their own infrastructure.

Quoting from the Amazon T&C.

We further reserve the right to discontinue Amazon Web Services, any Services, or any portion or feature thereof for any reason and at any time in our sole discretion. Upon any termination or notice of any discontinuance, you must immediately stop your use of the applicable Service(s), and delete all Amazon Properties in your possession or control (including from your Application and your servers). Sections 3, 5, 8 – 12, any definitions that are necessary to give effect to the foregoing provisions, and any payment obligations will survive any termination of this Agreement and will continue to bind you and us in accordance with their terms.

So, if your company is based on AWS: What does your disaster recovery plan look like? How do you react if Amazon goes down or if Amazon decides to shut down AWS? What happens next December when a busy holiday season makes Amazon divert bandwidth from S3 to their main business,

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