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Netflix demonstrates how it is more than possible to not only survive but thrive versus Amazon whilst building on top of AWS ->
To those who warn of the dangers of building on top of AWS, I would say that if you can demonstrate you can build a company that thrives on AWS (as per Netflix) only then does the idea of building your own cloud have any sort of merit and that merit is still very very small.
... the idea that you might build a cloud yourself (which only a very few have the skill of AWS) because of fear of competing with Amazon when you can't even compete with Amazon on top of AWS is ... well, frankly ... muppet doom.
