Om Malik has a good writeup on how startups are loving Amazon.com's S3 Web storage service. Users can store large amounts of information on the Web, which makes it accessible from anywhere, and Amazon charges 15 cents per gigabyte of storage per month and 20 cents per gigabyte of data transferred.
Why the love? Money, of course:
Online photo sharing company SmugMug CEO Don MacAskill seems to be one happy customer, with a good reason. He was facing a hefty tab for storage -- Smug Mug is adding about ten terabytes worth of photos every month and claims he saved almost $500,000 in storage expenses. His monthly tab just in storage is around $1,500.