Wait - this article appears to compare hardware costs of self-hosting against the total cost of using AWS. It's missing the most expensive component (labour) which just so happens to be extremely expensive to scale.
cloud is great for development, tinkering and figuring out the scale. after that, bare metal is king. and with docker, ansible/salt, nomad... there is zero need for over-engineered and over-complicated and over-paid cloud crap that sales people force down your throat day after day.