We did a lot of prototyping on AWS and still use them a lot, but really we are pretty agnostic as to where the VM lives. We need nvidia GRID cards (which is what we use to scrape the remote desktop really fast and which AWS has for prototyping) but the rest is pretty off the shelf. So currently its a pretty hybrid system
Hopefully it'll scale down gracefully when not doing graphics-intensive work. RDP is quite usable even with 100ms latency and only a few Mbps. OTOH I guess nothing's stopping you from renting a machine from Amazon now.
I'd just be worried if they use H.264 that there's not lossless compression on most UI elements. RDP falls back to lossy video-compression like behaviour under pressure, and it looks terrible and quite unusable. For Photoshop and graphics apps, sure. But for text and most UI elements, ouch.
Not just a problem with developing countries. I have 100 Mb at home so that's not a problem, but the main use case I see for this for me is to able to use it while traveling. Even in countries with a great high speed internet in general, getting great high speed internet in a hotel room or conference center is almost impossible.