I don't work for reddit anymore (as of about a week ago, although I didn't get as much fanfare as raldi did), but I can tell you that they're giving Amazon too much credit here. Amazon's EBSs are a barrel of laughs in terms of performance and reliability and are a constant (and the single largest) source of failure across reddit. reddit's been in talks with Amazon all the way up to CIOs about ways to fix them for nearly a year and they've constantly been making promises that they haven't been keeping, passing us to new people (that "will finally be able to fix it"), and variously otherwise been desperately trying to keep reddit while not actually earning it.
Source: http://www.reddit.com/r/blog/comments/g66f0/why_reddit_was_d...
cache: - scroll down for comment - http://webcache.googleusercontent.com/search?q=cache:cfbs-sp...
If you get a large network load to your instance - say, a DDoS attack - you can find you no longer have enough network capacity to talk to your EBS disks.
This is what happened to Bitbucket in 2009: http://blog.bitbucket.org/2009/10/04/on-our-extended-downtim...
It looks like EBS will randomly decide to switch to a few bps of performance from time to time. I would use Amazon for my startup, but these issues really make it hard to justify.