@Anobix Agree but cloud computing is like you buy different tiers of servers. Some cost more than others. The more dedicated the more expensive they get. A physical server runs many virtual servers and all of the i/o gets through the same network cards. So cloud servers are stil run on iron, cpus, memory etc. The pro of cloud is its very easy to scale up and down. Con you do not have it all by yourself.
I work with servers daily and not everything is made for clouds. You really want some heavy duty application you use physical hw - always !