Earlier quoted context omitted.
If you're a startup you should seriously consider colocation for as many of your workloads as possible The vast majority of startups do not succeed or fail based upon their ability to control their datacenter spend. They succeed or fail based upon their ability to attract customers and grow revenue. Colocating and managing your own servers instead of taking advantage of the ease of using the cloud will only be a dist…
The person you have to hire to manage that would cost 10x a public cloud bill
Unless you have some truly massive amount of hardware (in which case it's _definitely_ cheaper to hire someone than pay Amazon), you can generally just set it up and forget about it save for periodic maintenance and emergencies.
So what you really need to pay for is the time of someone who can do these things for you and funnily enough, such a service exists. I believe it's common in the not-startup world: a managed services provider (MSP).
And in the end this really depends on what the business is actually doing. AWS is _really_ price inefficient but in particular for bandwidth. If you're doing anything bandwidth-heavy like video, images or backup, you want to keep the hell away from any kind of cloud.