Earlier quoted context omitted.
It's actually several times cheaper to rent a whole physical machine than to rent a single Amazon VM of equivalent compute power.
Unless you want that whole machine to support IAM/VPC/EBS/etc and have proximity to your other VMs.
If I were to be CTO of a brand new company today, I’d probably just colocate my own servers with K8S. Much cheaper and much lower latency. 2x 1TB RAM servers with 3x 8TB high speed U.2/U.3 drives each would last years.