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isn't this offering cannibalizing AWS load balancers? if I have a set of web servers with a load balancer at front and health checks that takes unhealthy nodes out of rotation, isn't it cheaper now to just use this DNS fail-over?

http://aws.amazon.com/pricing/elasticloadbalancing/ http://aws.amazon.com/route53/pricing/

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Not really - DNS failover is typically much slower to respond compared to load balancing because records are cached.

ELB is a local load balancer, distributing requests to local servers based on load and availability.

R53 is a global traffic manager, distributing requests to datacenters to provide failover and latency optimization.

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