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I don't see any reason to do that. Say, if cloud service is hacked, then it's likely that both vms (with a node and signer) are hacked. Moreover, there're will be some networking, which is also subject to security breach.

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You can have your ledger device plugged into machine A (at home/office/datacenter) running tezos-signer, connected over VPN to your baker machine B (in cloud). Using tezos-signer on a different machine is to create security by separation.

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  • but why do we actually want this separation? as a result, we get additional networks, which is also prone to hacks
    – Omar Hayam
    Aug 15 at 15:40
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    "security by separation" is why. Why have firewalls and VLANs and other security between application and database? Why not put it all on one machine? Security. If app is compromised, it should be difficult to access the database. Don't put eggs in one basket.
    – utdrmac
    Aug 16 at 17:03

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