There is a registry value that doesn't exist by default, that can be added to change the timeout of the server, I think on development machines the default SP settings dont allow for deployment of large .WSP solutions, or could also be slower platforms.
Goto the following regustry key: HKEY_CURRENT_USER\Software\Microsoft\VisualStudio\10.0\SharePointTools
Add the following as a DWORD (wont be there by default)
REG_DWORD that specifies the time, in seconds, that Visual Studio waits for a SharePoint command to execute. If the command does not execute in time, a SharePointConnectionException is thrown. The default is 120 seconds.
This explains at the bottom some registry keys that can be added for debugging, which includes the one mentioned.
Reference troubleshoot a timeout happening while deploying via VS