Many of us have web and application servers that use plain TCP.
Some of us have web and other servers that use a secure layer such as SSL.
My understanding of SSL is that the handshaking is very computationally intensive, and the encryption of an ongoing connection is (relatively) cheap.
My assumption for you to correct: an average hosting box (and info on what is average at cloud hosting would be cool too) might easy be expected to be able to saturate its network connections with AES-encrypted packets, but have difficulty doing a thousand RSA handshakes per second. Client authentication with certificates is substantially more expensive for the server than anonymous clients too.
What kind of rules of thumb for the number of session setups per second for SSL are there?