Earlier quoted context omitted.
Yep, we were easily saving a developer salary per month vs AWS using colo’d hardware even as a very small company. And god help you if you’re trying to run something bandwidth intensive on AWS.
What happens if your server's hardware seriously breaks?
In practice, I wouldn't recommend colocation until you are at the scale and budget where you can maintain your own spares. Better outsource it to a dedicated host like OVH/Hetzner/etc that has tons of servers and can immediately replace the hardware.