When I get a cloud instance I am getting the same thing as a dedicated server right? Just with a cool name? Can it run custom Linux kernels? If it can, I see no difference between cloud hosting and a dedicated server!
Is it like a VPS where the kernel cannot be modified / customized? Is it like dedicated servers where I can modify anything? Why doesn't everyone choose the cloud since the cost is less. What's the gimick?
Specifically when I say cloud I am talking about this: http://www.rackspace.com/cloud/cloud_hosting_products/