This was a huge technical problem I worked on at Google, and is sort of fundamental to a cloud. I believe this is actually a big deal that drives peoples' technology directions. SSDs in the cloud are attached over a network, and fundamentally have to be. The problem is that this network is so large and slow that it can't give you anywhere near the performance of a local SSD. This wasn't a problem for hard drives, whi…
How much faster would the network need to get, in order to meet (or at least approach) the speed of a local SSD? are we talking about needing to 2x or 3x the speed, or by factors of hundreds or thousands?
Networked storage negates that significantly, absolutely killing performance for certain applications. You could have a 100Gbps network and it still won't match a direct-attached SSD in terms of latency (it can only match it in terms of sequential access throughput).
For many applications such as databases, random access is crucial, thus why nowadays' mid-range consumer hardware often outperforms hosted databases such as RDS unless they're so overprovisioned on RAM that the dataset is effectively always in there.