I really like this DotCloud business model. Although i see a competition directly from Amazon Cloud Formation. What will happen to DotCloud if all the independent vendors make their software Cloud Formation ready?

There is a difference here, DotCloud making the platform ready for to you vs the vendor makes the platform cloud formation ready.(Thats AWS they make others to work for them)

Would love to see how this little, nimble start up being chased by a big, fat, bully AWS, fights back.