Since each node was handling 500GB of data (roughly), I think the disk speed may have been a more critical factor since each node had 244GB of memory. Their nodes used SSDs; the older nodes used spinning rust. The seek times alone will be a killer.
If only that were true -- the shuffle is typically seek-bound when the intermediate data doesn't fit into cache (plenty of papers show this pretty conclusively).
yes, that's the key. The local IO on previous reported systems was HDDs, thus 300-600Mb/s at best with 6 drives per machine, while this guys are getting 3.3Gb/s. Getting full performance - 1.1Gb/s - of 10Gb network - were they lucky or AWS now is that good ? (couple years ago i was able to get only 400Mb/s node-to-node on cluster compute nodes there)