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> Sendgrid et al will continue to innovate in terms of feature set, and AWS never will

Seems to me that Amazon has been quite busy innovating and expanding their feature set.

You're right, I misspoke when I said "innovate" - what I meant was, Amazon's goal is to create reliable base-level services for the developers of the world. Whereas a Sendgrid might provide unsubscribe management and fancy graphing, I don't see Amazon adding on additional services like this.

then they'd be moving into MailChimp's turf! I'd say they're in a pretty tight spot...

They already added fancy graphing to EC2, EBS and RDS just recently. What used to be CloudWatch services became free and integrated into the dashboard of those other services. Elastic Beanstalk is also a layer above their base-level services. Seems like Amazon is willing to move up the chain and will continue to in the future.

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