I’m sure it works fine if you’re USA based but I can tell you it’s a complete nightmare down here.
Once the kids hit facebook the whole internet in New Zealand slows down, trying to access a Drupal site on Rackspace just ends with the “WSOD” (White screen of death).
I completely agree with you on this. As a company we tried out cloud computing and it was the biggest mistake we made.
The connection speed was so slow that we lost a couple of customers. We moved back to New Zealand hosting, put our poor clients through the hoop as we yet again changed out email server.
I would really suggest to any New Zealand company to bin the idea. Hosting abroad looks a good deal but in the end it’s a nightmare.