[byteclub]

I think what that post is trying to say is this: focus on your core competency. Amazon is good at cloud computing, Netflix is good at renting/streaming movies.

However, there are some cases where "core competency" is a vague term. Take Facebook for example - could they outsource their infrastructure to somebody else? Given how much data they have to handle, probably not. When you get to the point where scaling requires very low-level (Hunch) or massive (Google or Facebook) optimizations/deployments, you might be entering the business of handling intricate infrastructure yourself.

[SRSimko]

I work at an IaaS company and we hear the same thing daily most want to focus on what they do best and often it's not server hugging.

Also companies that embrace the cloud have changed how they do things because they see the efficiencies and recognize that they don't want to be in the business of managing servers.