[brucen]

That single person you are paying a sub-par wage won't be providing 24/7/365 support, which is a big benefit of AWS / cloud providers. It's also a bit of insurance on your hardware in case of failures, free replacement. Finally, if something catastrophic was to happen, with a recent-ish offsite backup it's usually pretty trivial to setup on a different region or even cloud provider. With your own hardware, that's a bit harder.

I agree though with one of the parents, AWS costs here can likely be significantly reduced. I cut costs in half by (a) reserving instances and (b) thinking about EBS and downgrading / downsizing where possible rather than using the defaults.