Just another single point of failure
When I previously worked in telecoms I learned that there are many single points of failure that are often overlooked. One of those is your relation with your supplier. When you are in a high-volume business there are always going to be disputes with your suppliers. At that time you do not want to be at their mercy where they can shut down your whole operation over a payment dispute.
So basically you need to have redundancy of cloud suppliers if you move your critical operations into the cloud. Once you have that redundancy it becomes less important if one of the cloud suppliers fails, so you might as well move back to renting co-location space from different suppliers in different locations using different internet backbones. At least that way you can make your own risk analysis / mitigation plan and bargain with your suppliers on price/quality.
Another thing, I didn't notice TheRegister covering this, but if Amazon - the mother of the cloud - cannot allocate enough resources to sell a single MP3 from their new music locker service that they are trying to promote... why should we trust them with our business critical services?
http://www.computerworld.com/s/article/9217020/Lady_Gaga_s_Born_This_Way_overwhelms_Amazon
Biting the hand that feeds IT
