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No, there is significantly more complexity, overhead, and R&D to providing cloud services in comparison to bare metal. SoftLayer is actually a very expensive bare metal server provider. There are several good options that cost less than 1/3rd the price. Realistically, at just modest scale (a few physical servers), you should see 1/6th the cost of Amazon. The main benefits of Amazon is that it: a) allows you to scale…
Could you please list some competitors to SoftLayer? It's hard to get reliable opinions on cloud providers backed up with actual experience. I'd really appreciate it!
The best resource to research different providers are the webhostingtalk.com forums. You can also contact me and I will do my best to advise you based on your desired criteria.
*Full Disclosure: I'm the founder/owner of a dedicated hosting company