If you're backing things up to the same server, that's not enough. If the HA instances are running in the same server, that's not enough.
If there are other things besides that one physical server and it's power/network, you didn't include them in the cost, so the comparison is disingenuous there.
Awesome! Really glad to hear this is the case. But those are all added costs beyond the single physical server you gave the price of.
Server cost * number of physical servers you have deployed Cost of your off-server storage Cost of your network appliance doing load balancing
It's still probably way less than the AWS bill, but it's not really fair to compare the total price of infrastructure in one environment vs. just a portion of the other.
But the fact of the matter is quite simply is that any single physical server solution will never be satisfactory for backups or HA purposes.
You can't store your backups in the same place as your data and call it good - what do you do when you have multiple disks fail and your RAID can't be rebuilt? This happens. What do you do when operator error accidentally destroys the array? This happens. What do you do when there's a datacenter fire and the server burns up? This happens. None of these things should be a business ending event, but if you only have a single server handling quintuple duty, that's what it has a real chance of being.
If you need HA, a single server isn't good enough even if you've got multiple VMs running the service. What do you do when the utility power is out and the generator fails to kick on properly or they run out of fuel? Both of those happen pretty frequently. What do you do when there's a network outage at the DC? This happens. When someone fucks up BGP somewhere and now the prefix you used is being routed to god knows where? This happens. When you have any sort of physical server failure that brings your single box down? This happens. Any of those situations will take you offline and render your HA meaningless.
I'm not saying that any of these things are impossible to do when colocating your hardware - but they're not free, and they're not mentioned even at a high level in this story. And since we're not talking about running benchmarks on price/performance and instead talking about a service that a business needs to keep available to their customers to make money, these are important aspects to talk about. Everywhere I've worked, keeping our services available and being able to recover from hardware failure are far more important priorities than being able to optimize performance. And doing those things properly takes more than one physical server.
Each and every one of your disaster scenarios is handled by the architecture. Each an every one of your disaster scenarios has happened and we've lived through them, as well as after the fact reviewed and optimized how we handled the events. As you are, we're professionals.