Why can't we call VPS as cloud! I think the "cloudy" character does not come just because we do not know how or where is it running or what the hardware is, it comes more because I can deploy an application or store a data somewhere on the earth right from my home. A better way to put it could be - VPS are first generation cloud/kind of raw version whereas EC2, GAE, Heroku et al. are the advanced cloud systems where some things could happen automatically.