Based on our experience, S3’s availability has been fantastic. Only twice in the last six years have we experienced S3 downtime and we have never experienced data loss from S3.
Amazon claims 99.999999999% durability and 99.99% availability. Note that this is higher than the vast majority of organizations’ in-house services. The official SLA from Amazon can be found here: Service Level Agreement – Amazon Simple Storage Service (S3).
For HDFS, in contrast, it is difficult to estimate availability and durability. One could theoretically compute the two SLA attributes based on EC2’s mean time between failures (MTTF), plus upgrade and maintenance downtimes. In reality, those are difficult to quantify. Our understanding working with customers is that the majority of Hadoop clusters have availability lower than 99.9%, i.e. at least 9 hours of downtime per year.
It’s interesting how opinion has shifted; even a year ago, the recommendation would be different.