Network latency may well play a part, but a single long TCP session will usually adapt to that quickly. If there is a lot of back-and-forth query-and-response activity, though, you'll run into the laws of network physics on each exchange. (See
this forum thread for my previous ramblings on this topic.)
There's always a bottleneck somewhere (disk I/O, network I/O, CPU, etc), and figuring out what it is (or what they are) would be excellent in both cases. Right now, there's too many variables to extend this beyond "Linode is probably faster at exporting databases to London people who have a $20/mo budget"
(This post counts as studying for my data analysis exam.)
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