Disclaimer: I do not work in a lab, and never have beyond a short stint as a research assistant in undergrad.
That being said, I can think of several reasons. In no particular order:
Competition from computers: a significant chunk of the big data/machine learning revolution is going into producing better models and simulations; this directly competes with the repeatability and scalability pitch that cloud labs are making. Come to think of it, the best use might be validating or building a model or simulation.
My expectation is that nothing coming out of big data/machine learning models at the moment is going to be trusted directly but needs to be verified in actual experiment. Do you believe differently?
ECL is a good fit for my use case, which is running a small-scale, independent, non-profit research lab. I agree with a lot of what @ryan_b said. In addition, it's very expensive. Billed annually, a nonprofit can get the price down to $24k / month. There's a similar discount for startups. Pay monthly, and add some tutoring, and you're looking at almost $49k / month.
In comparison, renting a bench (with standard equipment) in Cambridge, MA costs around $3k - 4k / month, and other bio incubators might charge as little as $500 / month.
I would have expected Emerald Cloud Lab or similar competitors to go a lot and be successful over the last five years. As far as I know, like Emerald Cloud Lab only had modest growth and there aren't competitors who grew strongly. Outsourcing to cloud labs seems like it allows the laberatory to have benefits of scale and virtualization that drives down costs and is easier to use then working in a wet lab. Is there something holding back this trend that I'm not seeing? Alternatively, what's going on?