Second Life + Amazon EC2

Much has been written lately about Linden Labs having problems scaling the backend server fleet behind Second Life. At the same time, there has long been call for Linden Labs to open up Second Life to outside server operators. Just as the web would not enjoy the scale and popularity that it does if it were a closed monolithic system, so Second Life cannot really attain its potential if it stays a a Linden Labs walled garden.

I've read various interviews with Linden Labs execs talking about their tentative plans to open up third party server access to Second Life. From what I've read they are exploring a variety of possibilities from completely open sourcing the server code, to licensing the software commercial for companies to run their own colo servers, to colocating other companies' servers inside Linden Labs data centers. One option I've not heard is how appropriate Amazon's EC2 elastic compute cloud would be to running third party second life servers (or even for Linden Labs' own use). EC2 is "elastic" by design, so the compute nodes can be scaled up and scaled down as traffic demands.