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Oh that's interesting. I actually worked for IBM until last year (on System z, even) and didn't know about that. If my experience in our dev environments is any indication, the horsepower might not be as high as you'd think. =) My other concern is that the CPU is shared with all the other virtual machines, so you couldn't rely on a constant CPU allocation, so things would get weird with Robocode's CPU constant. Either lots of skipped turns or SlowBots given infinite time and taking forever.

Some folks have played with App Engine and EC2: Talk:RoboRumble#Client_on_Google_Apps_Engine. Seems like it can't be long before these options are cheaper/easier/better than buying your own big box for things like Robocode.