this post was submitted on 21 Aug 2023
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Cloud hosting does not fit in that. The service they offer is datacenters. Nobody was running an equivalent datacenter before in their server closets at the office. Taxis and television are modestly changed but datacenters for running technical operations are on a different planet than the on-prem infrastructures they replaced.
That and also that it's natural they would jack up prices to be at or just below the cost of maintaining your own servers, otherwise everyone would just run their own servers
It's a case by case thing, but in a lot of cases the cloud is worse than self-run infrastructure from a cost perspective.
But self-hosting has other non-monetary costs such as the organizational complexity of having to have a giant in-house IT department that knows how to build and maintain that infrastructure, when none of it may be deeply related to the core of what the business is about.
Also, the cloud may be able to compete well against self-hosted stacks with your existing IT department across feature sets price wise in an apples-to-apples comparison, but not everyone needs everything the cloud provides. In some cases, it's not even necessary or desired to have everything connected and available on the Internet.