I don't know how many times I need to say this, but I will die on this hill. Centralized services don't decrease redundancy. They're usually far more redundant than whatever homegrown solution you can come up with. The difference between centralized and homegrown is mostly psychological. We notice the outages of centralized systems more often, as they affect everything at the same time instead of different systems at…
There's no doubt a VM in AWS is exponentially more redundant than my VM running on a couple of Intel NUCs in my closet.
The difference is, when I have a major outage, my blog goes down.
When EC2 has a major outage, all of the blogs go down. Along with Wikipedia, Starbucks, and half the internet.
That single point of failure is the issue.