I can understand that a company wants to do away with the distraction of having to worry about running a datacentre but is using one of the major cloud services cheaper than running your own? Amazon and Microsoft seem to be making healthy profits off their cloud services. That's part of your cost. Now it may be that even if more expensive, it is a better use of your capital (renting instead of owning so that you can…
Except, I get to share one person across several systems.
Simplified example:
$100k/year for a Linux engineer
That same person can upgrade 10 Linux servers (on-premise company) or 1000 linux servers (cloud provider). It may take the 1000 linux servers slightly longer, but the cost to service is still significantly lower.
There's also a lot less variability in skills of the Linux engineer.
I don't think people quite understand that cloud computing is a consolidation and elimination of backend computing jobs, not the increase. The only reason there is an increase in the market, is because the overall pie is growing.