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Correct me if I am wrong, but I believe if your application was designed to operate across multiple 'regions' your app would have indeed been safe from this failure.

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Sure, but then your app needs to communicate across the Internet if you share data across regions. This can be expensive and/or slow and/or unreliable. http://aws.amazon.com/ec2/faqs/#how_will_I_be_charged_for_da...

Or not as much: http://aws.amazon.com/directconnect/

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