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My initial reaction was, "What the @#$%??" But after seeing the "Reserved Network Performance" line in their pitch, I started wondering.

Business success is all about creating unfair advantages and keeping them (imo). With Net Neutrality dead and Verizon being the (from what I can tell) the best network provider in the US, perhaps they can leverage this "unfair advantage" into commercial success.

What applications depend on network performance above all else?

"What applications depend on network performance above all else?"

A lot, indirectly, because that's how their storage is connected.

1. Their regional data centers 2. CDN (if they providing) more closer to residential customers. 3. :), preferred streaming compare to netflix

EDIT: Found spec link http://beta.cloud.verizon.com/cloud-compute/compute-specific...

So far, all pricing is "to be announced". Also, the only compute location in the US currently available is Virginia.

why would anyone in their right mind choose Verizon?

Better SLA and support options maybe, also I would guess Verizon's network (at least for the US) is better than most cloud providers. They also seem to offer some interesting encryption options for their storage service.

Their network?

Introducing Verizon Cloud