Database Network Latency
On a linux based server you can test the effect of latency yourself by using the tc command.
For example this command will add 10ms delay to all packets going via eth0
tc qdisc add dev eth0 root netem delay 10ms
use this command to remove the delay
tc qdisc del dev eth0 root
More details available here: http://devresources.linux-foundation.org/shemminger/netem/example.html
All applications will differ, but I have definitely seen situations where 10ms latency has had a significant impact on the performance of the system.
Yes, network latency (measured by ping) can make a huge difference.
If your database response is .001ms then you will see a huge impact from going from a 0.2ms to 8ms ping. I've heard that database protocols are chatty, which if true means that they would be affected more by slow network latency versus HTTP.
And more than likely, if you are running 1 query, then adding 8ms to get the reply from the db is not going to matter. But if you are doing 10,000 queries which happens generally with bad code or non-optimized use of an ORM, then you will have wait an extra 80seconds for an 8ms ping, where for a 0.2ms ping, you would only wait 4 seconds.
As a matter of policy for myself, I never let client applications contact the database directly. I require that client applications always go through an application server (e.g. a REST web service). That way, if I accidentally have an "1+N" ORM issue, then it is not nearly as impactful. I would still try to fix the underlying problem...
In short : no !
What you should monitor is the global performance of your queries (ie transport to the DB + execution + transport back to your server)
What you could do is use a performance counter to monitor the time your queries usually take to execute. You'll probably see your results are over the millisecond area.
There's no such thing as "Reasonable latency". You should rather consider the "Reasonable latency for your project", which would vary a lot depending on what you're working on. People don't have the same expectation for a real-time trading platform and for a read only amateur website.