Doug Madory reporting in Renesys Blog: "Packet latency is a big issue in Internet-based applications (i.e. the stuff in the cloud). In conducting analysis on Internet infrastructure over the years, we have seen many patterns of connectivity. One such pattern that can wreak havoc on latency is 'hair-pinning', a phenomenon where traffic takes an unnecessarily long physical path between two points on the Internet due to suboptimal routing. The increased distance results in increased latency, and the 'lag' or 'sluggishness' that users experience as a result can hinder latency-sensitive online applications whether they are financial trading applications or MS SharePoint."
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