The bulk of your comment - your second, third and fourth paragraphs - focus on issues of speed, bandwidth and reliability in a third party hosting/cloud-based architecture, which are a design-time tradeoff, so I don't see them as strictly relevant (though anecdotally informative).
Your fifth paragraph describes problems related to operations process, which are entirely avoidable.
Your fifth paragraph describes problems related to operations process, which are entirely avoidable.