Earlier quoted context omitted.
People say this all the time, but with some of the most common applications of high throughput sequencing there are very good canned solutions (using open source software) that you can pay for. DNAnexus, Seven Bridges, and Illumina BaseSpace all provide cloud storage and analysis. Unless you are doing a custom prep for your sequencing one of these probably has an analysis solution for you.
Is the time required to upload data to the cloud ever a problem with these solutions? Of course, it depends on what you are trying to do, but suppose you were working with thousands of genomes?
It takes a 100mbit stream/$1M of sequencing capital, so network connectivity to transfer to a data center is a tiny tiny cost of the whole ordeal.
However, paying for AWS storage is pretty prohibitive, unless you're at a small scale. So big centers will build their own storage facilities.
The small data producers like the ones that the thread author talks about can use often use AWS more cost efficiently than building a compute cluster. However, they need to budget for that, which is not always thought of. They may also need to fight their institute's core center so that they can use DNANexus.