Earlier quoted context omitted.
Eh... I think that the maybes you are using are a little bit misleading. When a company sells space in their "cloud", like maybe Microsoft or Amazon, there is a business guarantee that goes along with it. If Amazon were to randomly lose a big chuck of Netflix data, AWS's business would tank immediately. AWS is a giant system that uses its scale and number of customers to efficiently provide a more stable system at a…
That must be why Amazon's SLA is defined as follows[1] : If amazon loses more than 3 datacenters (only total loss of external connectivity for all of your instances in an entire availability zone, or total loss of hard disk access, again only counts if all your instances completely lose hard disk/EBS access) for more than 45 minutes in a month you get 10% of what you pay as a voucher for future ec2 usage. If they los…
Second, you've completely ignored the actual key points. For one thing, "Cloud" companies make their business by providing a stable service. You have the "guarantee" based on thousands of other business using the exact same infrastructure without serious service failures. That is a huge amount of statistical reliability. Compared to hiring your own IT department and cobbling together your own system, that is actually really good indicator. Second, the cost difference is potentially massive. Again, it is for similar reasons that shipping via UPS is a much better deal than shipping via your own private distribution network. You might have to still pay some people to handle your own inventory from its source (like you'd have to have some people to work on your system in the cloud) but you'd be taking advantage of a much larger, more efficient system instead of having to build and maintain your own.