AWS (Amazon Web Services) provides on-demand access to computing resources and services including servers (EC2), storage (S3 and EBS), databases (SimpleDB), and more on a pay-as-you-go basis. EC2 allows users to run virtual servers in AWS's data centers. S3 provides online file storage, while EBS provides virtual block storage for EC2 instances. SimpleDB is AWS's NoSQL database. Other services include SQS for job queuing and Mechanical Turk for distributed human intelligence tasks. Compared to traditional hosting, AWS offers more flexibility and customization at a lower upfront cost while charging based on usage and resources consumed.