@Dont_Qwit
Running on virtualized servers in the cloud is fine as is proven with BF1/BF5 doing the same and both having very acceptable netcode by now. At least I barely have those bad hitreg experiences or player models lagging around as I have every match in BF2042. And if I do, then I can use the scoreboard to see the ping of those players and sometimes (not always) this explains why those events happened.
I would even go so far as to say that using cloud servers is the best way as they can easily scale and only have to pay for what they use. And definitely 1000 times better than having any client host the match. As far as server performance is concerned this depends mostly on the parameters set by the cloud infrastructure provider. At work we are running a large cluster ourselves and I can easily spin up a server in seconds with 96 cores (which is the limit given the underlying hardware). If I run `htop` I can see all cores (which looks impressive for 96 cores 🙂 ). If I am the first one doing that, then I have (almost) the full performance of the underlying hardware. But due to the configuration of our cluster, I can also spawn such a POD (we are running k8s) even if another one is active. To me this looks like I have the same machine, but both 'VMs' running compute intensive jobs, they will be slower of course as they share the underlying HW.
So, it depends on how the cloud provider chosen by EA (AWS?) has configured their cluster. Do they allow for the same 'sharing' of CPU cores or does one get dedicated cores. If the allow for a shared CPU, then each server instance gets slower (less CPU cycles per wall time), even when the virtualized HW as it can be seen by the client does not change. And I guess that Dice tested their servers and decided for the 'right' size and parameters of their VMs in their idle test environment and now with more servers active and the same HW getting slower because of that, they face issues. All of this is of course a bit of speculation as I don't know the AWS/Azure/... config (most likely even Dice does not know that in detail) and if all of the lag/hitreg problems are related to server performance at all.