Experience developing on the cloud?

Anyone developing on the Private Cloud or Developer Cloud? Any issues that don't exist on developing on your desktop? Developers working on a VPC VM are suddenly experiencing severe issues with TFS connections constantly dropping during the file transfer on Win 7 VMs so I'm looking to see if developing on the Cloud is any better since the cloud options for me are located in Eagan like the TFS servers. Any other issues with development on the cloud? By the way, using the new proxy server for my Rochester, NY location hasn't made a difference to solve the dropped TFS connections. We've exhausted many work-arounds the last 6 months that no longer work including using the local TFS proxy server, upgrading to TFS 2012, clearing TFS cache. If you found a solution that worked for you let me know.