I'm the decision maker for the company in question - Authentise. It was a combination of cost and the fact that we need to support an in-datacenter install option for our customers. RDS is really great if you need all of the failover and backup options it provides and you don't have the manpower to invest in it. That's how we got our services started. But, as our expertise and automation grew it ended up being a modest cost savings to handle our own backups and redundancies. Primarily, though, we just can't install RDS in someone else's datacenter on premises.