Running a server is child's play, people. Don't believe the hype!
I've done this analysis for (mostly small-scale) companies for about 10 years, and, every time, the cost of using public cloud computing has been 2x-10x of running ones own servers for 3 years.
I've only had one exception, where the incremental cost of compute was 1:1, if the servers were placed in more expensive space near the other servers in the existing datacenter. Data transfer costs made cloud more expensive, of course.
> Running a server is child's play, people.
I'd say that's a bit of a hyperbole, but I agree that the incremental expertise (and time/effort) required to deal with hardware over cloud, is far from the prohibitve headache it's made out to be.
But I (and the GP) addressed that. It just isn't hard.
Your earlier comment is closer to the truth:
> political and cognitive effort of doing it themselves
With "traditional" industries, it seems the problem is entirely political, and it actually is about cost, because cloud isn't competing against the commodity gear we've been talking about here. Cloud is competing against "enterprise" hardware, which easily costs even more than cloud, not least of which due to maintenance contracts.
There was some discussion of this (somewhat tangential to the main topic) I participated in here https://news.ycombinator.com/item?id=17329028