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They're talking about running the db on a vm, setting it up and tuning it themselves. As opposed to a managed solution which is setup and tuned and hosted on a vm controlled by another company.

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I'm still unclear on if the VM here is on a machine they own/on their own premises? Or is it under someone else's control? "In the cloud" sounded like the latter but it sounds like the intention was the former?

It means when you use the database service from AWS, they provision the machines and the replication and the database themselves.

Whereas you can get a machine on AWS and setup the database yourself.

They are talking about renting a VM from a cloud provider and setting up the DB themselves (example: EC2) vs renting a fully managed DB from a cloud service provider (example: RDS).

But if you're running on a VM from a cloud provider isn't your data still in the hands of a third party..??

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