Here is a post that reports that all is not happy for some with their heads in the clouds.
Is Amazon EC2 Oversubscribed and Suffering from Internal Network Latency?
I am not directly involved with this, but figured I’d raise it in the blog.
There have been various reports from the community of Amazon EC2 users, that their instances are suffering poor performance, as the result of high internal network latency. This has led to speculations that Amazon’s Cloud might be getting oversubscribed.
Alan Williamson from aw2.0 Ltd, has written a report about his experiences with Amazon EC2, where he claims that Amazon, as every Cloud provider his company has tried out, seems to scale well at the beginning but there is a tipping point:


