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An in-house application is usually controlled and managed by the enterprise IT department who can work on improving its performance. Such involvement is not available once an application is moved into the cloud. The enterprise IT department has little control over the network conditions at the cloud provider's hosted data center.
This lack of control is an important issue which becomes more critical with cloud providers because of the nature of dynamic provisioning. There’s no guarantee that another cloud customer on the same LAN won’t be pushing massive amounts of application traffic over the LAN all at once. E.g. when malicious customers have used the flexibility and limitless computing power of the cloud to launch denial-of-service attacks.