[jollybean]

So you've just explained why 'the cloud' is better than DIY.

Take all those things you just talked about, and expand them horizontally and vertically up the stack, and you have 'AWS'.

So not just 'a guy to replace the hardware' - but now it's software configurable, has all sorts of other, fancy things.

Time is money, and it's expensive to pay people to mess with things if they don't have to.

It's like this:

If your company needs 3 cars, you rent/lease them. You do not hire your own mechanics, even if technically speaking "we could change the oil for so much less!"

If your company is in the business of transportation, and you have thousands of trucks, you may want your own repair/maintenance team etc. instead of paying some service company a fat margin to change the oil.

[balex]

The original discussion was around price-performance of physical servers vs cloud VMs. That being the case, it's not a clean a distinction as you describe it. It would be more along buying a few trucks and taking them to the garage when needed (which is rare in small numbers) vs renting many more vans, for higher margin, just to avoid the garage.