Earlier quoted context omitted.
Is that really cheaper than S3, though?
Way cheaper. Amazon is a middleman for hardware. Even at smallest scales the cost of buying a server pays off within a year. In exchange you get convenience and the ability to scale up on demand without buying more hardware.
What's the minimum commercially you'd spend to get cross-continent redundancy on hardware you manage in-house. Just the accounting cost of paying wages for technicians in two countries probably means you need to be a quite large company.
There are middle grounds, managed co-location say, but then you're not likely to save much over using AWS are you?