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Client asked if we can host our application for them on Amazon Cloud. The app has database running on MS SQL Server which is approximately 20 Gb in size.

We need to update the database almost every night and approximately 75% of all data is overwritten each time.

Any idea whether Amazon EC2 can reliably handle a load like that?

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Have you thought about giving Azure a look? Azure has some very interesting plans and from what you are doing it seems like it could be an even better solution than using EC2

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We run some load tests in Amazon EC2 environment with database structure and data fill very similar to what we have in production and discovered no performance issues whatsoever.

Further, we configured mirroring replication to another instance of SQL Server running in a different location, but in the same geographic region (US East Coast). Maximum observed replication latency in our setup was about 15 minutes.

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Is that possible to grab the Amazon EC2 window package only then you install you own of SQL server into that server ? i think should more control over installed express version.

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