For instance, I host most of my business on AWS. We recently had a compromised server that delivered malware to some of our Web visitors resulting in Google completely blacklisting our site, and ultimately resulting in AWS sending us a threatening notification that we were violating their terms of service by serving malware and we could be terminated at any time.

Within an hour of finding out the root cause we cleaned up the malware issue, but we spent the next 24 hours trying to get Google to remove the blacklist and kept our fingers crossed that AWS wouldn't just terminate all our 17+ instances and ask questions later - effectively putting us out of business.

Welcome to the cloud!