Unless AWS has some 'magic dust' then all the costs you ascribe to an enterprise /traditional hosted environment also apply to them - I assume they pay for power, rack space, hardware, cooling, labour? If nobody can achieve $45 /mo, then neither can AWS.The real issue is whether an enterprise or traditional hosting provider can leverage scale, virtualisation and automation to achieve the same unit cost of computing as AWS does. Many will be able to, others won't. This seems a fairly sterile debate. I agree what is really important about cloud is flexibility and responsiveness - low unit cost of computing is not the issue.