Everything in the cloud is throttled. Network, IOPS, CPU. And probably implemented incorrectly. AWS makes billions if the customer infrastructure is great or terrible. I found that anything smaller than an AWS EC2 m5.8xlarge had noticeably bad performance on loaded servers (Windows). The list price for that would be about $13k per year, but most organizations get lower than list prices.
This also applies to services, not only compute. Anything associated with Microsoft Office 365 Exchange, scripts may run 10x slower against the cloud using the MSOnline cmdlets. It's absolute insanity, I used to perform a dump of all mailbox statistics that would take about one hour, it could take almost 24 hours against Office 365. You have to be careful to not use the same app or service account in multiple places, because the throttle limits are per-account.
This also applies to services, not only compute. Anything associated with Microsoft Office 365 Exchange, scripts may run 10x slower against the cloud using the MSOnline cmdlets. It's absolute insanity, I used to perform a dump of all mailbox statistics that would take about one hour, it could take almost 24 hours against Office 365. You have to be careful to not use the same app or service account in multiple places, because the throttle limits are per-account.