With EC2 there is no steady increase each year in computing power. It's like Moore's law has been frozen in time. EC2 server instances are looking decidedly old and underpowered.

Amazon gets all the benefit of hardware costs decreasing and computing power increasing over time, but no increase in power gets passed through to EC2 users.

Very sad. Slow old cloud computing servers are starting to make running your own powerful modern, cheap, fast servers look attractive.

Will cloud computing vendors start to seriously compete on computing power?