Earlier quoted context omitted.
My company has done some research on that, in the webscale bubble. It is wrong to think of the divide as "Cloud" vs "Bare Metal" in a VM for server thing. Disregarding up-front investment, you're comparing rented VMs in the cloud with bare metal boxes, datacenter costs, and most important, manpower. At a small scale, you're paying the cloud less than 2 or 3 competent admins with datacenter and networking experience c…
Cloud may save from hardware/driver issues - by providing an already tested environment, that doesn't (normally) trip on some weirdness in, say, network drivers. But if the problem is in the software stack, one would still need competent sysadmins/system engineers with skills to diagnose and resolve the issue. When (just a random example) oom-killer wreaks havoc and free(1) insists there's more than half of physical…
If you use some VM-based cloud infrastructure you will still need a bunch of good system/linux admins to make your application work on the linux in the cloud. Without these, you're toast.
Bare metal requires you to have both good system and linux admins, and on top of that, good hardware admins, networks and datacenter hands. These are different skill sets.
So again: If you do the bare metal thing right at the scale it pays for itself, you'll probably end up paying both the skillset for the cloud deployment, and add the hardware skillset on top.